In re: THOMAS RICHARD McINNIS

United States Bankruptcy Appellate Panel for the Ninth Circuit·Decided December 10, 2018·No. NC-17-1336-FBKu NC-17-1354-FBKu·Unpublished

Opinion

FILED

DEC 10 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NOT FOR PUBLICATION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 Nos. NC-17-1336-FBKu NC-17-1354-FBKu

THOMAS RICHARD McINNIS, (Consolidated)

Debtor. Bk. No. 17-52291 THOMAS RICHARD McINNIS, Appellant,

v. MEMORANDUM*

SANTA CRUZ COUNTY TAX COLLECTOR; SELECT PORTFOLIO SERVICING, INC.,

Appellees.

Argued and Submitted on November 29, 2018 at San Francisco, California

Filed – December 10, 2018

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

*

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.

Honorable Stephen L. Johnson, Bankruptcy Judge, Presiding

Appearances: Appellant Thomas Richard McInnis, pro se, on brief;

Jessica Claudine Espinoza argued for appellee Santa Cruz County Tax Collector.

Before: FARIS, BRAND, and KURTZ, Bankruptcy Judges.

INTRODUCTION

Chapter 131 debtor Thomas Richard McInnis appeals from the bankruptcy court’s orders denying an extension of time to file his schedules, denying an extension or imposition of the automatic stay, and dismissing his case with a two-year bar on refiling. He argues that the bankruptcy court failed to consider his emotional, physical, and financial condition when it dismissed his case – his twelfth bankruptcy case since 2008 and his fourth case within a year. Despite his extensive history of failed bankruptcy cases, he claims that he is now ready and willing to complete the bankruptcy process. The bankruptcy court did not err when it refused to credit this assertion.

We AFFIRM.

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.

FACTUAL BACKGROUND2

A. Mr. McInnis’ history of bankruptcy filings Since 2008, Mr. McInnis has filed twelve bankruptcy petitions, all of which were dismissed. Including the present case, his five most recent cases were dismissed for failure to file required documents.

Mr. McInnis claims that his string of bankruptcy filings was due to the economic recession and a conspiracy against him perpetrated by the local government. Prior to July 2015, he filed seven bankruptcy petitions, which he claims “were due to the great recession[.]” Then, he was arrested in July 2015 on unspecified criminal felony charges, and he explains that “all of my [subsequent] bankruptcies were due to the county trying to steal my lots without legal notification[,]” perhaps as “political retribution” for an unsuccessful campaign for county supervisor. He represented that the criminal charges were dismissed by the district attorney in January 2018,3 but that he has had to travel between California and Nevada to care for his ailing father. He claims that the multiple bankruptcy filings were necessary “to save my real property from a fire sale by virtue of an unnecessary foreclosure or illegal tax seizure of my real property.”

2 We exercise our discretion to review the bankruptcy court’s docket, as appropriate. See Woods & Erickson, LLP v. Leonard (In re AVI, Inc.), 389 B.R. 721, 725 n.2 (9th Cir. BAP 2008).

3 Based on Mr. McInnis’ motion to continue oral argument in this appeal, it appears that the criminal charges are still pending.

B. Mr. McInnis’ tax-defaulted properties Mr. McInnis owns two empty lots in Aptos, California (the “Subject Lots”). According to appellee Santa Cruz County Tax Collector (the “County”), Mr. McInnis has not paid any property taxes on the Subject Lots since 2007. The Subject Lots were declared tax-defaulted4 in July 2007.

In 2011, the County obtained the power to sell the Subject Lots and scheduled the properties for auction in 2014. The County represented that it attempted to sell the Subject Lots four times since 2014, but each time, Mr. McInnis filed a bankruptcy petition to hinder or delay the sale.

The most recent sale was scheduled for September 22, 2017. The County notified Mr. McInnis that the Santa Clara County Board of Supervisors would purchase the Subject Lots unless he redeemed the properties by 5:00 pm on that date.5 At that time, he owed a combined total of approximately $100,000 in delinquent property taxes on the Subject Lots. C. The present bankruptcy case Mr. McInnis filed a skeletal chapter 13 bankruptcy petition two days

4 Section 126 of the California Revenue and Tax Code defines “tax-defaulted property” as “real property which is subject to a lien for taxes which, by operation of law and by declaration of the tax collector, are in default and from which the lien of the taxes for which it was declared tax-defaulted has not been removed.” Cal. Rev. & Tax. Code § 126.

5 The amount necessary to redeem property is the sum of “(a) The total amount of all prior year defaulted taxes[;] (b) Delinquent penalties and costs[;] (c) Redemption penalties[; and] (d) A redemption fee . . . .” Cal. Rev. & Tax. Code § 4102.

before the scheduled sale of the Subject Lots.6 It was his fourth bankruptcy filing within the past year. He did not file his schedules, statement of financial affairs, statement of current monthly income, calculation of disposable income, or chapter 13 plan. The bankruptcy court ordered him to file those documents within fourteen days or risk dismissal. D. The motion to impose or extend the automatic stay On September 22, 2017, Mr. McInnis filed a motion to impose or extend the automatic stay (“Motion to Impose Stay”). He explained, “I have filed several bankruptcies in the past year but I was unable to complete the process because I was busy working and caring for my ailing father, so the automatic stay . . . might not go into place.” He further stated that his most recent petition “was prepared and filed in an expedited manner to stop a last minute unnecessary foreclosure sale of his home on September 20, 2017 and an illegal tax sale of the debtor’s empty lots scheduled on or after September 22, 2017.”

Mr. McInnis explained that his father had various health problems and only recently moved to California, where Mr. McInnis could better care for him. He stated that his father would live in an RV on the Subject Lots and contribute toward the payment of back taxes. He promised that he

6 In apparent anticipation of the sale, Mr. McInnis transferred a ten percent interest in the Subject Lots, without consideration, to Tami Lee Davis on September 7, 2017. Ms. Davis also filed a chapter 13 petition on the same day as Mr. McInnis.

would “complete [his] schedules and get them filed with the court on time . . . .”

The County filed an opposition to the Motion to Impose Stay and asked the bankruptcy court to confirm that the automatic stay was not in effect under § 362(c)(4)(A)(I) because Mr. McInnis had more than two bankruptcy cases dismissed within the previous year. The County also requested that the court decline to impose the automatic stay because Mr. McInnis did not file his petition in good faith. E. The motion to extend the filing deadline While the Motion to Impose Stay was pending, Mr. McInnis filed a motion requesting a forty-five day extension of time to file his schedules and other documents (“Motion to Extend Deadline”). He stated that he was working and caring for his father so “was unable to gather all the necessary documents for completing the chapter 13 schedules, statement of affairs, plan, and other information and documents . . . when the petition was filed.”

Two days later, the bankruptcy court denied the Motion to Extend Deadline (“Deadline Extension Order”). It stated that, “[g]iven Debtor’s numerous bankruptcy case filings, the court does not find that Debtor’s reason for extension of time is credible . . . .” It noted that Mr. McInnis had filed eleven other cases and had “failed to disclose all prior cases on his voluntary petition.”

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