WILLIAM TERRELL HODGES, District Judge.
This is an appeal from an order of the Bankruptcy Court entered in a proceeding pending before it under Chapter 13 of the Bankruptcy Code. This Court has jurisdiction of the appeal under 28 U.S.C. § 158.
The issue concerns the fate of a claim filed in the bankruptcy case by the Appellant, Charles W. Beacham. He first denominated his claim as secured, but later attempted to amend and assert the claim as unsecured. The Debtor objected to the amended claim. The Bankruptcy Court first overruled the objection to the amended claim, but later reversed itself and entered the order on appeal sustaining the Debtor's objection. The end result was that Appellant Beacham's claim was treated as a secured claim (as originally filed) to be dealt with and paid "outside of the Confirmed Plan" according to the terms of the Plan.
The case has been thoroughly briefed and the Court has heard oral argument. The Appellant Beacham purports to present nine (9) separate assertions of error in a prolix brief, but after one preliminary matter, there are only two issues that need to be discussed and decided in disposing of the case: (1) whether an order confirming the Debtor's plan is
Upon full consideration of the record, the briefs, and the oral argument, the Court has determined that the order of the Bankruptcy Court should be affirmed. An explanation follows.
Sometime before commencement of this bankruptcy proceeding on December 31, 2008, Mr. Beacham obtained a judgment in another state against the Debtor, Alicia Silva, a resident of Florida. According to his statement at oral argument, Mr. Beacham then caused the judgment to be recorded with the Florida Secretary of State, but he apparently did not record it locally with the Clerk of the Circuit Court in the county of the Debtor's residence or any other county where she might have an interest in real property.
On December 31, 2008, the Debtor filed a voluntary petition in the Bankruptcy Court, Fort Myers Division, under Chapter 13 of the Bankruptcy Code. The petition listed Mr. Beacham as the Debtor's singular creditor with an unsecured claim in the amount of $195,000.00.
On January 8, 2009, an order was entered establishing May 21, 2009, as the bar date for the filing of proofs of claims.
On January 20, 2009, Mr. Beacham filed a secured proof of claim in the amount of $200,477.47 describing his security as a "recorded judgment lien."
On February 17, 2009, Mr. Beacham filed an objection to confirmation of the Debtor's proposed plan on the ground, among others, that the plan "discriminates unfairly against the creditor [Beacham] in classifying creditor's judicial lien claim as an unsecured claim because creditor's claim is a recorded judgment lien on all property in which Debtor has an interest."
On April 21, 2009, an order was entered scheduling a confirmation hearing, and a hearing on Mr. Beacham objections, for August 20, 2009.
On June 18, 2009, Mr. Beacham filed a withdrawal of objection to confirmation of Chapter 13 Plan stating that Beacham "as the sole creditor in this case . . . hereby withdraws his objection to the Confirmation of Debtor's Chapter 13 Plan and claimed exemptions and concurs with and will abide by recommendations of the Chapter 13 Trustee appointed in this matter."
On August 20, 2009, the Bankruptcy Court held a confirmation hearing as noticed by the order of April 21, 2009. Mr. Beacham did not appear at that hearing. Those attending were counsel for the Debtor and counsel for the Trustee. It was brought to the attention of the court that Mr. Beacham had withdrawn his objections to the Plan and that he had filed a secured claim, not an unsecured claim. The following colloquy then occurred:
The matter was taken under submission; no order was entered immediately after the hearing. Then, on September 22, 2009, Mr. Beacham filed a pleading entitled "Objection to Confirmation of Proposed Modification of Debtor's Chapter 13 Plan." It recited:
At roughly the same time, on September 28, 2009, Mr. Beacham filed an amended proof of claim form designating his claim as unsecured. On October 19, 2009, without acting on Mr. Beacham's intervening objection of September 22 or his amended claim of September 28, the Bankruptcy Court entered its Order Confirming Plan. The form order provided that: "The holders of secured claims, whether or not dealt with under the Plan as confirmed, shall retain the liens securing such claims." The order also contained the following provision added at the end of the form:
On October 27, 2009, Mr. Beacham filed a motion for an order requiring the Trustee to turn over the funds of the estate to him.
On November 5, 2009, the Bankruptcy Court entered an order allowing and disallowing claims. Exhibit D to that order expressly allowed Beacham's claim but provided, in accordance with the confirmed Plan, that the claim was "[s]pecifically not dealt with nor affected by the Plan and shall be paid by the Debtor directly to said Creditor outside of the Confirmed Plan."
On November 9, 2009, Mr. Beacham filed a motion for reconsideration of the order of November 5, allowing and disallowing claims; and on November 10, 2009 he filed an adversary proceeding against the Debtor seeking to revoke confirmation of the plan.
On December 3, 2009, the Debtor filed an objection to Mr. Beacham's amended proof of claim filed on September 28, 2009. The objection asserted that the "amended" claim was not an amendment that would relate back to the earlier claim but was, in fact and in law, a new and untimely claim filed beyond the bar date.
After two postponements requested by the parties, respectively, a hearing was held on June 2, 2010, on the Debtor's objection to Mr. Beacham's amended claim. Afterward, on June 30, 2010, the Bankruptcy Court entered an order
The Debtor (on June 30, 2010) and the Trustee (on July 14, 2010) moved for reconsideration of the order of June 30, and a hearing was held on August 18, 2010, attended by Mr. Beacham. Then, on September 17, 2010, the Bankruptcy Court entered an order — the order now on appeal — reversing and vacating the order of June 30; sustaining the objection to and disallowing Mr. Beacham's "amended" claim; and, effectively, reinstating the order confirming the Plan.
A.
There was no irregularity or denial of due process in any of these events. The original, proposed plan filed by the Debtor with her petition expressly stated that "[t]he Trustee shall only make payment to creditors with filed and
B.
First, it is important to note that despite having filed an objection to the Plan before the order of confirmation was entered; and despite having filed (within a week after entry of the order confirming the Plan) a motion for an order requiring the Trustee to turn over the funds of the estate; and despite filing objections to the order allowing and disallowing claims; and despite having filed an adversary proceeding contesting the order confirming the Plan, Mr. Beacham, quite inexplicably, never sought reconsideration of the order confirming the Plan itself; never filed a notice of appeal seeking appellate review of the order; and never filed a motion under Rule 9024 of the Federal Rules of Bankruptcy Procedure or Rule 60(b) of the Federal Rules of Civil Procedure seeking relief from the order.
The Supreme Court has squarely and unanimously held, in a Chapter 13 bankruptcy proceeding, that the order of the bankruptcy court confirming a debtor's plan is a final judgment.
Clearly, therefore, the Bankruptcy Court was correct in overruling the earlier order entered by another judge purporting to amend the Confirmed Plan
The Bankruptcy Court was also correct in holding that the attempted amendment and reclassification of Mr. Beacham's claim from secured to unsecured, coming after the bar date and the confirmation of the Plan, was untimely and was foreclosed by the preclusive
Following the admonition that the Bankruptcy Courts "must subject post bar date amendments to careful scrutiny to assure that there was no attempt to file a new claim under the guise of amendment," (
C.
It is easy to understand Mr. Beacham's frustration with respect to the outcome of this case, and to understand as well the effort of the Bankruptcy Judge (who entered the case mid stream in June, 2010) to correct what some might well view as an unjust result. After all, the Debtor herself began this proceeding and initially proposed a plan of periodic payments that would have substantially satisfied her indebtedness to Mr. Beacham at the end of five years — a debt she believed to be, and so denominated, as an unsecured obligation. Mr. Beacham, however, chose to file his claim as a secured claim and, indeed, attempted to perpetuate and protect that status by objecting to the proposed Plan for the precise reason that his claim was being treated as unsecured rather than secured. Then, for whatever reason, he did not attend the confirmation hearing and did not appeal or otherwise mount a collateral attack on the Confirmed Plan that then became a final judgment. Yet, in the end, he is no worse off than he was at the beginning. He still has his judgment and all of the remedies provided by the law to attempt collection.
The Judgment and Order of the Bankruptcy Court entered on September 17, 2010, is in all respects AFFIRMED.
IT IS SO ORDERED.
DONE and ORDERED.