Askri v. Gorman

CourtDistrict Court, E.D. Virginia
DecidedJuly 29, 2022
Docket1:21-cv-00799
StatusUnknown

This text of Askri v. Gorman (Askri v. Gorman) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Askri v. Gorman, (E.D. Va. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA Alexandria Division

SYED ASKRI, ) ) Debtor/Appellant, ) ) Civil Action No. 1:21-cv-00799 (RDA/IDD) v. ) Bankruptcy Case No. 21-10669-BFK ) THOMAS P. GORMAN, ) ) Acting Trustee/Appellee. )

MEMORANDUM OPINION AND ORDER

This matter comes before the Court on Appellant Syed Askri’s (“Askri”) pro se appeal of the United States Bankruptcy Court for the Eastern District of Virginia’s (“Bankruptcy Court”) order dismissing his Chapter 13 bankruptcy action. The Court dispenses with oral argument because it would not aid in the decisional process. Fed. R. Civ. P. 78; E.D. Va. Loc. Civ. R. 7(J). The Court has reviewed the record (Dkt. 2), Appellant’s opening brief (Dkt. 5) and Appellee Thomas P. Gorman, the Trustee’s (“Trustee”) brief (Dkt. 7). Having considered the issues presented in this appeal, the Court AFFIRMS the judgment of the Bankruptcy Court for the reasons that follow. I. BACKGROUND On April 16, 2021, Appellant filed a voluntary petition under Chapter 13 of the Bankruptcy Code. Dkt. 2 at 2. Including the current case, Askri, Askri’s wife, or the couple together filed seven bankruptcy cases beginning in 2011 with two of these cases reaching the Fourth Circuit Court of Appeals. Id. at 62. Each prior case involved a series of loans secured by their primary residence (“Property”). Id. at 70. The current case presents three separate claims, one by creditor Bank of America for a pre-petition arrearage, one by creditor U.S. Bank, and one by Askri’s Homeowner’s Association (“HOA”), with each claim secured against the Property. When totaled, the amount claimed by the three parties is approximately $775,000. Id. at 79, 126, 135. Askri began his relationship with the Bankruptcy Court by filing his first claim jointly with his wife as a Chapter 13 petition with the assistance of counsel on December 8, 2011. Dkt. 1, No. 11-18773-RGM (Bankr. E.D. Va. Dec. 8, 2011). In his filing, Askri claimed a total liability of

$1,034,987.16 and submitted a monthly plan to pay his debt even though the difference between his income and expenses was less than $100. Id. at 8. After the Trustee filed an objection to the confirmation of the plan due to a lack of disposable income, Dkt. 22, No. 11-18773-RGM (Bankr. E.D. Va. Mar. 1, 2012), the Bankruptcy Court denied the Chapter 13 plan and converted the claim to a Chapter 11 reorganization. Dkt. 34, No. 11-18773-RGM (Bankr. E.D. Va. Apr. 19, 2012). When Askri failed to file monthly reports from July of 2012 to March of 2013, the Trustee in the case urged the Bankruptcy Court to convert the case to a Chapter 7 liquidation or dismiss the case. Dkt. 66 at 1, No. 11-18773-RGM (Bankr. E.D. Va. Mar. 14, 2013). The Bankruptcy Court granted the Trustee’s motion and converted the case. Dkt. 78, No. 11-18773-RGM (Bankr. E.D. Va. May

15, 2013). Following the conversion to Chapter 7, the Bankruptcy Court dismissed Askri’s wife’s case on June 25, 2013, after she failed to appear at a creditor’s conference. Dkt. 92, No. 11-18773- RGM (Bankr. E.D. Va. June 24, 2013). The Bankruptcy Court closed the case by discharging Askri on September 4, 2013. Dkt. 102, No. 11-18773-RGM (Bankr. E.D. Va. Sep. 4, 2013). Less than four months after the Bankruptcy Court discharged Askri, his wife filed another Chapter 13 plan to pay their creditors. Dkt. 1, No. 14-10200-BFK (Bankr. E.D. Va. Jan. 17, 2014). In her plan, Askri’s wife again claimed over $1,000,000 in debts and reported a monthly disposable income of approximately $100 to resolve the debts. Dkt. 27 at 1, No. 14-10200-BFK (Bankr. E.D. Va. Feb. 11, 2014). For the first time, she claimed the Property was underwater and sought an exemption. Dkt. 26 at 5, No. 14-10200-BFK (Bankr. E.D. Va. Feb. 11, 2014). Like the first filing, a creditor objected to the confirmation of the plan because of insufficient funds to satisfy the outstanding debts. Dkt. 28 at 1-2, 14-10200-BFK (Bankr. E.D. Va. Feb. 19, 2014). The creditor also objected to the exemption claim by Askri’s wife that would eliminate the creditor’s interest in the Property. Id. In response, Askri’s wife filed her first modified plan that still lacked the

funds to pay the outstanding debt but simply removed one of the creditors from the plan. Dkt. 39 at 4, No. 14-10200-BFK (Bankr. E.D. Va. Mar. 18, 2014). After a series of motions and hearings, the Bankruptcy Court denied the confirmation of the Chapter 13 plan on April 18, 2014. Dkt. 86, No. 14-10200-BFK (Bankr. E.D. Va. Apr. 18, 2014). On August 12, 2014, Askri’s wife filed her second modified Chapter 13 plan of the case with the same defects as her previous filings. Dkt. 96, No. 14-10200-BFK (Bankr. E.D. Va. Aug. 12, 2014). Accompanying the third plan, Askri, on behalf of his wife, alleged fraud against one of the creditors for allegedly producing a false proof of claim and for alleged misconduct by court employees for failing to file one of Askri’s prior motions. Dkt. 97 at 2, No. 14-10200-BFK (Bankr.

E.D. Va. Aug. 14, 2014). The Bankruptcy Court denied the second modified Chapter 13 plan on September 19, 2014, Dkt. 119, No. 14-10200-BFK (Bankr. E.D. Va. Sep. 18, 2014), and granted the creditor’s motion to remove the stay preventing foreclosure of the Property. Dkt. 113, No. 14- 10200-BFK (Bankr. E.D. Va. Sep. 18, 2014). Askri appealed the Bankruptcy Court’s decision denying his motion on September 26, 2014. Dkt. 122, No. 14-10200-BFK (Bankr. E.D. Va. Sep. 26, 2014). While the appeal was still ongoing, on October 9, 2014, Askri’s wife filed a third amended Chapter 13 plan. Dkt. 127, No. 14-10200-BFK (Bankr. E.D. Va. Oct. 9, 2014). The Bankruptcy Court denied the confirmation of the newest plan and dismissed the case on November 18, 2014. Dkt. Nos. 140-41, No. 14-10200-BFK (Bankr. E.D. Va. Nov. 18, 2014). The District Court later affirmed the Bankruptcy Court’s decision. Dkt. 158, No. 14-10200-BFK (Bankr. E.D. Va. Feb. 20, 2015). In April of 2015, shortly after the District Court’s decision, Askri filed his first unaccompanied Chapter 13 plan. Dkt. 1, No. 15-11267-RGM (Bankr. E.D. Va. Apr. 15, 2015). In his plan, Askri sought to avoid liens and secured interests on his Property because he claimed

insolvency. Dkt. 20 at 5, No. 15-11267-RGM (Bankr. E.D. Va. May 13, 2015). Again, the creditors and the Trustee filed objections to the confirmation of Askri’s Chapter 13 plan because the plan lacked the funds to satisfy Askri’s debts. Dkt. Nos. 23 at 1-2; 25 at 1-2; 27 at 1-2, No. 15-11267-RGM (Bankr. E.D. Va.). Askri then modified the plan twice over the course of two weeks, Dkt. Nos. 31; 37, No. 15-11267-RGM (Bankr. E.D. Va.), to which a creditor and the Trustee objected. Dkt. Nos. 42-43, No. 15-11267-RGM (Bankr. E.D. Va.). The Bankruptcy Court denied the confirmation of the plan without leave to amend on August 20, 2015, Dkt. 51, No. 15- 11267-RGM (Bankr. E.D. Va. Aug. 20, 2015), and Askri appealed the Bankruptcy Court’s decision to the District Court. Dkt. 53, No. 15-11267-RGM (Bankr. E.D. Va. Aug. 27, 2015). The

District Court affirmed the Bankruptcy Court’s decision. Dkt. 66, No. 15-11267-RGM (Bankr. E.D. Va. Dec. 18, 2015). Askri appealed to the Court of Appeals for the Fourth Circuit, which also affirmed the Bankruptcy Court on June 28, 2016. See Askri v. First Horizon Bank, 667 F. App’x 50 (4th Cir. 2016). On December 30, 2015, Askri’s wife filed a Chapter 11 petition. Dkt. 1, No. 15-14542- KHK (Bankr. E.D. Va. Dec. 30, 2015). In her petition, Askri’s wife asserted a rescission claim against one of their creditors. Id. at 28-30. As part of the bankruptcy proceedings, a court-ordered stay on the foreclosure of the Property prevented the creditors from seizing the Property. Dkt. 34 at 1-2, No. 15-14542-KHK (Bankr. E.D. Va. Mar. 10, 2015).

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Askri v. Gorman, Counsel Stack Legal Research, https://law.counselstack.com/opinion/askri-v-gorman-vaed-2022.