In re: JOHNNY BRACKSTON HILL
- Summarized by Jonathan Batiste , Rensselaer Polytechnic Institute
- 6 months 3 weeks ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- No. 24-10264 (11th Circuit, Aug 01,2025) Not Published
- Tag(s):
-
- Ruling:
- The U.S. Court of Appeals for the 11th Circuit affirmed the district court's affirmation of the bankruptcy court’s denial of Trustee’s motions to modify confirmed chapter 13 bankruptcy plans pursuant to 11 U.S.C. § 1329. While trustees and unsecured creditors have the right to request modification of confirmed chapter 13 bankruptcy plans, they are not entitled to modification. Nothing prevents bankruptcy courts from refusing to modify confirmed plans, even when presented with modified plans satisfying the § 1329 requirements.
- Procedural context:
- Debtors filed for chapter 13 bankruptcy, and the bankruptcy court confirmed their payment plans. Debtors were subsequently involved in personal injury accidents and received settlement payments. Trustee moved to modify the confirmed payment plans, but the bankruptcy court denied the motions. Trustee appealed to the district court, and the bankruptcy court stayed enforcement of its order denying Trustee’s motions. The district court affirmed the bankruptcy court’s decision, and Trustee appealed to the U.S. Court of Appeals for the 11th Circuit.
- Facts:
- Debtors filed for chapter 13 bankruptcy in 2018, and the bankruptcy court confirmed their payment plans shortly thereafter. Debtors then suffered personal injuries and received settlement payments. Trustee filed motions to modify the confirmed plans so that unsecured creditors would benefit from the net settlement proceeds. The bankruptcy court held an evidentiary hearing, found no legitimate reason to modify the plans, and denied Trustee’s motions. The court reasoned that Debtors continued to experience pain from the injuries and were facing additional financial burden. Trustee appealed the bankruptcy court’s decision, and the court stayed enforcement of its decision denying the motions. Debtors received discharges from their plans in 2024; however, the bankruptcy court’s stay order stopped Trustee’s appeal from becoming moot: the discharges excluded the settlement proceeds. The district court affirmed the bankruptcy court’s decision, and Trustee appealed to the U.S. Court of Appeals for the 11th Circuit. The court assumed that the proposed modifications met all § 1329 requirements and examined the bankruptcy court’s discretion to confirm modified plans that satisfy the statutory requirements. The court found no clear error in the bankruptcy court’s judgment, mentioning the ample support Debtors’ testimony provided for the decision. While unforeseen changes in circumstances support a decision to modify plans, they do not necessitate it. Trustees and unsecured creditors have a right to request modification, but they are not entitled to modification. Nothing stops bankruptcy courts from refusing to confirm modified plans. The bankruptcy court was therefore within its discretion to deny the proposed modifications.
- Judge(s):
- Branch, Abudu, and Kidd
ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!
