In re Dyer

Summarized by Laura Bartell , Wayne State University Law School
12 years 11 months ago

Citation:

No. 12-8030 (6th Cir. BAP March 14, 2013)

Tag(s):

Ruling:

The Sixth Circuit Bankruptcy Appellate Panel vacated order of bankruptcy court for the S.D. Ohio denying confirmation of debtors' chapter 13 plan, dismissing debtors' bankruptcy case and ordering disgorgement of attorneys' fees, and remanded for further proceedings.

Procedural context:

Appeal from order of U.S. Bankruptcy Court for the S.D. Ohio

Facts:

Debtors filed a second bankruptcy case under chapter 13 within one year. Pursuant to section 362(c)(3), the automatic stay terminated with respect to the debtors thirty days after the second filing. The bankruptcy judge, after notice and a hearing, denied confirmation of the plan and dismissed the case and ordered disgorgement of debtors' attorneys' fees, ruling that confirmation would not be effective without the automatic stay. The Bankruptcy Appellate Panel held (1) that the presence of the automatic stay is not a prerequisite for confirmation of a chapter 13 plan, and (2) the court abused its discretion in ordering disgorgement of attorneys' fees based on the failure of debtors' attorneys to seek extension of the automatic stay. The BAP therefore vacated the bankruptcy court order and remanded for further proceedings.

Judge(s):

Emerson, Harris and Lloyd

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