Hardcastle v. Greer (In re Hardcastle)

Summarized by David Hercher , U.S. Bankruptcy Court, District of Oregon
12 years 3 months ago

Citation:

In re Hardcastle, No. EC-13-1072-PaJuKi (9th Cir. B.A.P. Nov. 7, 2013).

Tag(s):

Ruling:

A collateral-valuation order determining that a claim must be treated as an unsecured claim in any chapter 13 plan requires that the claim be treated as an allowed unsecured claim, even if the creditor’s proof of claim characterizes the claim as secured. The opinion is not for publication.

Procedural context:

The chapter 13 debtors appealed denial of confirmation of their plan to the 9th Circuit B.A.P.

Facts:

The debtors sought and obtained a bankruptcy court order determining that a second mortgage on their home was entirely unsecured. The order stated that “[t]he claim shall be treated as an unsecured claim in any Chapter 13 plan.” The creditor later filed a proof of claim, characterizing its claim as secured. In their plan, the debtors sought to pay nothing to the creditor because its proof of claim did not assert an unsecured claim. The bankruptcy court denied confirmation. On appeal, the B.A.P. affirmed confirmation denial for several reasons, including that the debtors were required to comply with the bankruptcy court’s valuation order requiring that the creditor’s claim be treated as an unsecured claim, notwithstanding the creditor’s failure to assert an unsecured claim in its proof of claim.

Judge(s):

Pappas, Jury, and Kirscher, Bankruptcy Appellate Panel Judges.

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