In re: Stasha Lauren Sill

United States Bankruptcy Appellate Panel for the Ninth Circuit·Decided June 6, 2018·No. CC-17-1300-SKuL CC-17-1312-SKuL·Unpublished

Opinion

FILED

JUN 06 2018

NOT FOR PUBLICATION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 No. CC-17-1300-SKuL BAP No. CC-17-1312-SKuL

STASHA LAUREN SILL, (Related)

Debtor. Bk. No. 6:17-bk-16994-MH STASHA LAUREN SILL, Appellant,

v. MEMORANDUM*

SUSAN GLAZE; CYNTHIA WEBB; ROD DANIELSON, Chapter 13 Trustee,

Appellees.

Submitted Without Oral Argument on May 24, 2018**

Filed – June 6, 2018

*

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.

**

By order entered May 17, 2018, this Panel made attendance at oral argument optional. Because none of the parties appeared at the time and place scheduled for argument, the Panel took these matters under submission without oral argument.

Appeal from the United States Bankruptcy Court for the Central District of California

Honorable Mark D. Houle, Bankruptcy Judge, Presiding

Appearances: Appellant Stasha Lauren Sill pro se on brief; Daniel R. Forde of Hoffman & Forde on brief for appellees Susan Glaze and Cynthia Webb; Elizabeth A. Schneider on brief for appellee Rod Danielson, Chapter 13 Trustee.

Before: SPRAKER, KURTZ, and LAFFERTY, Bankruptcy Judges.

INTRODUCTION

Stasha Lauren Sill appeals from an order denying her motion to continue the automatic stay in her second chapter 131 bankruptcy case filed within a year. Sill also appeals from an order dismissing the second case. Sill’s main argument on appeal concerns the adequacy of her counsel’s representation. She contends that the bankruptcy court’s adverse rulings were the result of her counsel’s acts and omissions. According to Sill, she should not have been held responsible for her counsel’s alleged mistakes in

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, Rules 1001-9037. All “Civil Rule” references are to the Federal Rules of Civil Procedure, and all “Local Rule” references are to the Local Bankruptcy Rules of the United States Bankruptcy Court for the Central District of California.

representing her. We disagree. On this record, it is far from clear that the adverse rulings were the result of anything Sill’s counsel did or did not do. Regardless, Sill is legally responsible for her counsel’s acts and omissions. Accordingly, we AFFIRM.

FACTS

Sill commenced her first chapter 13 case in July 2017 (Case No.

6:17-bk-15864-MH). That case was dismissed without prejudice in August 2017 at the time of the confirmation hearing. The bankruptcy court dismissed the first chapter 13 case because Debtor was incarcerated at the time of the confirmation hearing and her proposed plan was clearly not feasible.

Sill commenced her second chapter 13 case within days of the dismissal of her first case. In successive cases, § 362(c)(3) provides that the automatic stay expires thirty days after filing unless extended by the bankruptcy court upon a showing of good faith. Sill thus filed a motion to continue the stay as permitted under § 362(c)(3)(B) to prevent her secured creditors from foreclosing on her residence. Sill asserted that the stay should continue because she filed her second bankruptcy case in good faith. According to Sill, she rearranged her living situation in order to be able to afford her plan payments. Sill asserted that her mother and brother had moved in with her and were contributing to her monthly expenses. Sill further asserted that her uncle was willing to contribute any remaining amounts for her plan payments necessary to ensure an effective reorganization. Sill also maintained she was

searching for employment now that she no longer was incarcerated and that she also received oil rights income. These changed circumstances, Sill insisted, evidenced her ability to pay her secured creditors as part of her chapter 13 reorganization.

Susan Glaze2 and Cynthia Webb, creditors who assert a claim secured by an interest in Sill’s residence, opposed the motion. Among other things, Glaze and Webb claimed that Sill had no equity in the property and that it was not necessary for her reorganization. Sill admitted these facts in the motion which listed a secured claim of $425,054 and a property value of $414,465. Glaze and Webb further pointed out that their underlying loan to Sill had fully matured prior to her first bankruptcy filing. Glaze and Webb argued that the number of discrepancies in Sill’s bankruptcy court documents evidenced Sill's bad faith in filing the second bankruptcy. These discrepancies included: (1) the amount owed to Glaze and Webb, (2) the amount in arrears, and (3) the value of her residence.

Glaze and Webb also asserted that Sill had failed to establish a change in her financial circumstances that would permit her to confirm and perform a feasible chapter 13 plan. They noted that, even though Sill no longer was incarcerated, she remained unemployed and her plan was dependent on

2 The secured creditors’ papers sometimes referred to Glaze as the secured creditor but sometimes said that a trust established by Glaze was the real party in interest. This discrepancy is not relevant to our analysis or resolution of this appeal. For ease of reference, we refer to her simply as Glaze.

thousands of dollars per month in family contributions. As Glaze and Webb also noted, there was little or no evidence demonstrating her relatives’ willingness or ability to financially support her throughout the course of her chapter 13 plan. In particular, Sill presented no evidence that her family had financially supported her in the past. Glaze and Webb further complained that the net income Sill's mother and brother alleged they received each month was not supported by the income documentation they submitted. Meanwhile, Sill's uncle did not submit anything indicating his willingness and ability to financially support Sill.

Sill and her counsel failed to appear at the hearing on the stay motion.

The bankruptcy court denied the motion based on the arguments made and evidence presented in the secured creditors’ opposition, the failure of either Sill or her attorney to appear, and Sill’s failure to establish that she had reliable financial resources available to support a feasible chapter 13 plan.

On September 28, 2017, roughly a week after the hearing on the stay continuance motion, the bankruptcy court held a confirmation hearing on Sill's proposed chapter 13 plan.3 Only the chapter 13 trustee appeared at the confirmation hearing. Neither Sill nor her counsel appeared. The trustee advised the bankruptcy court that Sill had not made any chapter 13 plan

3 Glaze and Webb filed an opposition to confirmation of Sill’s chapter 13 plan. In their opposition, Glaze and Webb made the same points they had made in their opposition to the stay continuance motion. However, they did not appear at the confirmation hearing. Nor did the bankruptcy court reference their plan opposition when it dismissed Sill's case.

payments and had failed to personally appear for the § 341(a) meeting of creditors held earlier that same day. The trustee further advised the court that, at the meeting of creditors, he had told Sill’s counsel that he would be recommending to the court dismissal of the bankruptcy case, with a 180-day bar to refiling.

Based on the trustee’s representations, the bankruptcy court dismissed the bankruptcy case. The bankruptcy court entered its case dismissal order that same day, on September 28, 2017. Sill timely filed a notice of appeal from the case dismissal order and the order denying the stay continuance motion.4 JURISDICTION

The bankruptcy court had jurisdiction under 28 U.S.C. §§ 1334 and 157(b)(2)(A) and (G). We have jurisdiction under 28 U.S.C. § 158.

ISSUES

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