In re: Javier Jimenez

CourtUnited States Bankruptcy Appellate Panel for the Ninth Circuit
DecidedMarch 3, 2020
DocketCC-19-1177-TaLG CC-19-1186-TaLG
StatusUnpublished

This text of In re: Javier Jimenez (In re: Javier Jimenez) is published on Counsel Stack Legal Research, covering United States Bankruptcy Appellate Panel for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re: Javier Jimenez, (bap9 2020).

Opinion

FILED MAR 3 2020 NOT FOR PUBLICATION SUSAN M. SPRAUL, CLERK U.S. BKCY. APP. PANEL OF THE NINTH CIRCUIT

UNITED STATES BANKRUPTCY APPELLATE PANEL OF THE NINTH CIRCUIT

In re: BAP Nos. CC-19-1177-TaLG CC-19-1186-TaLG JAVIER JIMENEZ, Bk. No. 2:19-bk-12271-VZ Debtor.

JAVIER JIMENEZ,

Appellant,

v. MEMORANDUM*

ARCPE 1, LLP, AKA ARCPE HOLDING, LLC; NANCY K. CURRY, CHAPTER 13 TRUSTEE,

Appellees.

Argued and Submitted on January 30, 2020 at Pasadena, California

Filed – March 3, 2020

* This disposition is not appropriate for publication. Although it may be cited for whatever persuasive value it may have, see Fed. R. App. P. 32.1, it has no precedential value, see 9th Cir. BAP Rule 8024-1. Appeal from the United States Bankruptcy Court for the Central District of California

Honorable Vincent P. Zurzolo, Bankruptcy Judge, Presiding

Appearances: Appellant Javier Jimenez argued pro se, assisted by translator Victor Rivera; Sevan Gorginian argued for appellee ARCPE 1, LLP aka ARCPE Holding, LLC; Masako Okuda argued for appellee Nancy K. Curry, Chapter 13 Trustee

Before: TAYLOR, LAFFERTY, and GAN, Bankruptcy Judges.

INTRODUCTION

Here we consider related appeals.

First, chapter 131 debtor Javier Jimenez challenges an order

dismissing his bankruptcy case2 (the “Dismissal Order”). But he failed to

promptly propose a confirmable plan, produce documents to the

chapter 13 trustee, and otherwise to perform his debtor duties. We see no

error in the dismissal and, therefore, we AFFIRM the Dismissal Order.

He also challenges an order (the “Stay Relief Order”) granting

appellee ARCPE 1, LLP (“ARCPE”) § 362(d)(1) and (d)(4) relief from the

1 Unless specified otherwise, all chapter and section references are to the Bankruptcy Code, 11 U.S.C. §§ 101–1532, and all “Rule” references are to the Federal Rules of Bankruptcy Procedure. 2 Appeal No. CC-19-1186.

2 automatic stay to foreclose on his residence located in Los Angeles,

California (the “Property”).3 Given our affirmance of case dismissal, we

DISMISS the § 362(d)(1) stay relief appeal as MOOT; we cannot reimpose

the stay in a dismissed case.

But the appeal of the § 362(d)(4) stay relief is not moot. Because in rem

relief may impact future cases, we can grant effective relief on appeal. And

ARCPE did not support its § 364(d)(4) stay relief request with evidence or

argument beyond reference to three bankruptcies filed over the last decade

and the unadorned assertion that this constitutes the inappropriate scheme

required for in rem relief. The record adds no additional supportive

evidence. And the bankruptcy court made no findings supporting this

relief beyond a reference to the three cases and the conclusion that this

evidenced the statutorily required scheme. As the mere filing of three

bankruptcies over a 10-year period does not unfailingly equate to a scheme

to delay, hinder, or defraud creditors, we REVERSE the Stay Relief Order

to the extent it grants § 362(d)(4) relief.

FACTS

The following facts are primarily reconstructed from the bankruptcy

court’s dockets.4

3 Appeal No. CC-19-1177. 4 Mr. Jimenez did not timely or appropriately comply with Rules 8014(a)(8) and 8018(a), (b)(1), and (c) in connection with his briefing and submission of the record. (continued...)

3 The Property and Deeds of Trust

Mr. Jimenez and his non-debtor spouse, Julieta Jimenez, co-own the

Property. In 2008, they borrowed money from Wells Fargo Bank, N.A.5 and

E-Loan, Inc. (“E-Loan”) and secured their indebtedness by deeds of trust

on the Property. E-Loan’s lien under its deed of trust (the “Deed of Trust”)

was second in priority. ARCPE claims interests in the Deed of Trust and

related note (the “Note”) through a series of assignments.

The Bankruptcies

The First Bankruptcy

The Jimenezes defaulted on Wells Fargo’s loan. Accordingly, it

scheduled a foreclosure sale for August 12, 2009. But on that day, the

Jimenezes filed a chapter 13 case (In re Jimenez, 09-bk-31209-SK) (the

4 (...continued) Such noncompliance may be grounds for affirmance or waiver of issues. See Mitchel v. General Elec. Co., 689 F.2d 877, 878–79 (9th Cir. 1982); McCarthy v. Prince (In re McCarthy), 230 B.R. 414, 416–17 (9th Cir. BAP 1999); 9th Cir. BAP R. 8018(a)-1(c). Nevertheless, given Mr. Jimenez’s pro se status, we accept and consider his briefing, as well as the attached transcripts. We also exercise our discretion to take judicial notice of documents electronically filed in his bankruptcy cases and related adversary proceeding. See Atwood v. Chase Manhattan Mortg. Co. (In re Atwood), 293 B.R. 227, 233 n. 9 (9th Cir. BAP 2003). But we do not consider any evidence attached to his appellate briefing that was not filed in the bankruptcy court. See Encino Bus. Mgmt. v. Prize Frize, Inc. (In re Prize Frize, Inc.), 150 B.R. 456, 461 (9th Cir. BAP 1993). 5 At some point, Federal Home Loan Mortgage Corporation, as Trustee for the benefit of the Seasoned Credit Risk Transfer Trust, Series 2018-2 (“FHLM Corp.”), acquired Wells Fargo Bank, N.A.’s secured claim. We refer to FHLM Corp. and Wells Fargo jointly as “Wells Fargo” herein.

4 “First Case”). They asserted that Wells Fargo’s senior lien overencumbered

the Property, and, thus, they also filed an adversary complaint to avoid the

Deed of Trust pursuant to § 506(a) and (d). The bankruptcy court

eventually entered a default judgment, avoiding the Deed of Trust lien on

the condition that the Jimenezes complete their confirmed chapter 13 plan

and receive a discharge.

Neither condition subsequent occurred. Almost two years into the

case, Wells Fargo moved for stay relief to continue its foreclosure and, after

a failed attempt at resolution through an adequate protection stipulation,

the Jimenezes dismissed the First Case.

The Second Bankruptcy

The Jimenezes filed a second chapter 13 case (In re Jimenez,

12-bk-34474-SK) (the “Second Case”) pro se one day before dismissing the

First Case. The stay as to the Property promptly terminated by operation of

§ 362(c)(3)(A).

The Jimenezes failed to provide notice of this Second Case and all

relevant filings therein to BLB Trading, LLC (“BLB”), the then holder of the

Note. They neither scheduled BLB as a creditor nor provided for payment

to it under their confirmed chapter 13 plan.

In May 2013, the Jimenezes obtained a loan modification from

Wells Fargo and dismissed the Second Case without receiving a discharge.

The Third Bankruptcy

5 Thereafter ARCPE became the Deed of Trust beneficiary, the

Jimenezes made no payments on the Note, and it matured. Accordingly,

ARCPE scheduled a foreclosure sale of the Property.

Mr. Jimenez stopped the foreclosure by filing his third chapter 13

case (In re Jimenez, 19-bk-12271-VZ) (the “Third Case”). ARCPE then filed a

$262,131.60 secured claim. His chapter 13 plan did not provide for

ARCPE’s claim.

ARCPE’s Motion for Relief from Stay

ARCPE moved for relief from the automatic stay (the “Stay Relief

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