KENNETH A. MARRA, District Judge.
This cause is before the Court upon Kathleen Anne Smith Cutuli's ("Cutuli") Amended Motion for Leave to Appeal, filed February 6, 2012. (DE 7.) In that motion, Cutuli requests that this Court permit an interlocutory appeal of the Bankruptcy Court's Order setting hearing, which was entered on December 2, 2011. The Court has carefully considered the motion, and the response of Mehrdad Elie ("Elie") and the Joinder Response of Marcia T. Dunn, Chapter 7 Trustee, and is otherwise fully advised in the premises.
On September 12, 2011, Cutuli filed a voluntary Chapter 7 petition with the Bankruptcy Court. (Voluntary Petition, Ex. A, DE 6.) As part of that petition, Cutuli completed Exhibit D to Official Form 1 entitled, "Individual Debtor's Statement of Compliance with Credit Counseling Requirement." Exhibit D to Official Form 1 states in part:
(Exhibit D to Voluntary Petition, Ex. A, DE 6) (emphasis in original).
Of the five statements enumerated on Exhibit D, Cutuli checked box number 3. By checking box number 3, she declared under penalty of perjury:
(
Cutuli then summarized her exigent circumstances by handwriting, "I am planning in the next week to complete a case on the credit conseling [sic] service. I am disabled and limited driving but I will have a friend drive me to the library to complete the class within 3 days." (
On September 13, 2011, Cutuli obtained the requisite credit counseling. (Certificate of Counseling, Ex. B, DE 6.) On September 21, 2011, the Bankruptcy Court entered an Order Setting Hearing to "determine whether an extension of time for completing the requisite counseling course is/was warranted." The Order also notified creditors that "if they wish to oppose an extension, or assert that the Debtor's petition should be dismissed for failure to complete credit counseling prepetition, they must file a written objection prior to the hearing." (September 21, 2011 Bankruptcy Order, Ex. C, DE 6.) No creditor filed an objection. (Creditor's Mehrdad Elie's Opposition to Debtor's (A) Opposition to Debtor's (1) Motion to Continue Meeting of Creditors and (2) Second Motion for Extension of Time to File Schedules; and (B) Request to Advance October 19, 2011 Hearing to October 17, 2011, Ex. D, DE 6.)
At the October 19, 2011 Bankruptcy Court's hearing, Cutuli's attorney stated, "The debtor filed this case pro se and filed it at the instruction or the direction of a non-bankruptcy attorney. I think she didn't fully realize what she was getting herself into at the time." (Transcript of October 19, 2011 Hearing at 5, Ex. E, DE 6.) Further, Cutuli's attorney stated:
(
On December 2, 2011, the Bankruptcy Judge A. Jay Cristol issued an order on the Bankruptcy Court's Order Setting Hearing. (December 2, 2011 Bankruptcy Order, DE 1.) The Bankruptcy Order noted that it was considering whether an extension of time for Cutuli to obtain the requisite credit counseling course required by 11 U.S.C. § 109(h)
Cutuli then filed her initial motion for leave to appeal, contending that this Court should permit her leave to appeal since if she is not eligible to be a debtor, the Bankruptcy Court has no jurisdiction over her assets. (Mot. for Leave to Appeal ¶ 10; Am. Mot. for Leave to Appeal ¶ 10.) She asserts that if she is not eligible to be a debtor, the bankruptcy case "represents a tremendous waste of judicial and professional resources." (
In moving to dismiss the motion for leave to appeal, Elie argues that Cutuli has not met the standard required for leave to appeal an interlocutory order and the questions raised by Cutuli in her appeal are entirely fact-based.
District court are authorized to grant leave to hear appeals of interlocutory orders entered by a bankruptcy court pursuant to 28 U.S.C. § 158(a). However, that provision does not provide the district court with any criteria for determining how to exercise its discretionary authority to grant a leave to appeal. Therefore, a district court must instead turn to 28 U.S.C. § 1292(b) which governs discretionary interlocutory appeals from district courts to the courts of appeals.
Even applying these factors, the moving party still has "the burden of persuading the court that exceptional circumstances justify a departure from the basic policy of postponing appellate review until after the entry of final judgment."
With these principles in mind, the Court exercises its discretion and denies the motion for leave to appeal. First and foremost, the Court rejects Cutuli's attempt to define the controlling question of law as whether the eligibility requirements of 11 U.S.C. § 109(h) are jurisdictional. (Am. Reply at 2.) Rather, after reviewing the entire record, the Court concludes that the controlling question before the Court is: Was it within the Bankruptcy Court's discretion to rely on Cutuli's statement of exigent circumstances in determining whether she fulfilled the credit counseling requirement? Because Cutuli filed Exhibit D to Official Form 1 entitled, "Individual Debtor's Statement of Compliance with Credit Counseling Requirement," there is no "pure" issue of law that does not require studying the record.
Likewise, the remaining questions raised by Cutuli are also fact-based; namely, whether Cutuli should be estopped from seeking to dismiss her bankruptcy case for failing to obtain credit counseling and whether the Bankruptcy Court erred in accepting the proffer of exigent circumstances. (Am. Mot. at ¶ 9.) Next, because these questions are actual factual findings by the Bankruptcy Court, there can be no substantial ground for difference of opinion among courts. Finally, the Court concludes that an interlocutory appeal will not materially advance the ultimate termination of this case. Once the Bankruptcy Court has rendered its final judgment, Cutuli will be in a position to take a direct appeal to challenge any and all rulings of the Bankruptcy Court, including factual rulings and legal rulings. By following that approach, judicial efficiency will best be served.
Accordingly, it is hereby
11 U.S.C. § 109(h).