Bankruptcy law has a phrase for the people it’s built to protect: the “honest but unfortunate debtor.” If you’re honest, the system is remarkably forgiving. If you’re not, the consequences can follow you for years — and a Middle District of Pennsylvania decision, In re Plevyak, is about as clear an illustration as you’ll find of where the line sits and what happens when someone crosses it.
What Happened in the Plevyak Case
John Michael Plevyak’s Chapter 13 case was the latest chapter in a dispute with his former employer, Solar Innovations, that had already produced years of state-court litigation and multiple bankruptcy filings. The history the court recounted is the kind no debtor wants attached to their name: prior cases that ended in dismissal or a denial of discharge, a 2023 ruling by the same court that the debt to Solar was not dischargeable, more than $250,000 in cash withdrawals from his accounts that were never accounted for, and material misrepresentations and omissions in his bankruptcy papers. While this Chapter 13 was pending, seven proposed plans were filed. All seven failed.
On September 25, 2025, Judge Mark J. Conway denied confirmation of the latest plan, finding the case and the plan were not filed in good faith as §§ 1325(a)(3) and (a)(7) require. Then the court went further: the case was dismissed with prejudice, and Mr. Plevyak was barred from filing another bankruptcy petition for two years.
The Rule: Good Faith Is a Requirement, Not a Slogan
Every Chapter 13 plan must be “proposed in good faith,” and every petition must be filed in good faith. Courts look at the totality of the circumstances — accuracy of the filings, candor about assets and transfers, the pattern of prior cases, and whether the filing is a genuine attempt to repay what can be repaid or a maneuver to stall and game the system. Section 349(a) gives the court power to dismiss with prejudice when good faith is lacking, and a dismissal with prejudice can carry a refiling bar — here, two full years with no access to the automatic stay, no discharge, and no bankruptcy protection at all.
Understand what that means in practice. A two-year bar doesn’t just delay relief; it leaves a person fully exposed to foreclosure, repossession, garnishment, and collection suits for two years, with the courthouse door closed.
What This Means for Anyone Thinking About Filing
Here’s the part I want every client to hear: the problems in Plevyak were not caused by being broke, or by owing a lot of money, or even by having filed before. People file second cases in good faith all the time and get their discharge. The problems were the unaccounted cash, the misrepresentations, and the pattern of filings used as a weapon in a private fight. Bankruptcy runs on disclosure — every asset, every account, every transfer, every debt. Tell your lawyer everything, including the parts that are embarrassing. A bad fact disclosed is a problem we can plan around. A bad fact discovered is a catastrophe, and as this case shows, the catastrophe can last for years.
Source: In re John Michael Plevyak, Case No. 5:23-02307-MJC (Bankr. M.D. Pa. Sept. 25, 2025). Read the opinion (PDF).
If you’re considering bankruptcy and you’re worried something in your history could complicate it, give us a call so we can discuss it honestly and upfront — that’s exactly when the conversation helps most.
