Kristine R. Ryan

CourtUnited States Bankruptcy Court, D. Connecticut
DecidedMarch 14, 2022
Docket18-30735
StatusUnknown

This text of Kristine R. Ryan (Kristine R. Ryan) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kristine R. Ryan, (Conn. 2022).

Opinion

UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT NEW HAVEN DIVISION

In re: : Case No.: 18-30735 (AMN) KRISTINE R. RYAN, : Chapter 13 Debtor : : THE BANK OF NEW YORK MELLON, : F/K/A THE BANK OF NEW YORK AS : TRUSTEE FOR REGISTERED : HOLDERS OF CWABS, INC., : ASSET-BACKED CERTIFICATES, : SERIES 2005-13, : Movant : v. : KRISTINE R. RYAN, : Respondent : : ROBERTA NAPOLITANO, : Chapter 13 Trustee : Re: ECF No. 212

MEMORANDUM OF DECISION AND ORDER ESTABLISHING POST-PETITION MORTGAGE ARREARAGE OWED BY THE DEBTOR

On February 15, 2022, the court held an evidentiary hearing to determine the amount the Chapter 13 debtor, Kristine R. Ryan (“Debtor”), owes to a creditor, The Bank of New York Mellon f/k/a The Bank of New York as Trustee for registered Holders of CWABS, Inc., Asset Backed Certificates, Series 2005-13 (“Bank”), for post-petition, post- confirmation monthly mortgage payments. The Bank alleges the Debtor owes a total of $5,292.99 for the monthly mortgage payments due October 1, 2020 through and including February 1, 2022. In contrast, the Debtor alleges she is behind in mortgage payments by approximately $2.00. After a review of the record of this Chapter 13 case and the evidence presented during the February 15th hearing, the court concludes the Debtor owes the Bank $2,642.30 including the March 2022 monthly installment payment. If this amount is paid, the Debtor will be current with post-confirmation mortgage payments through and including the payment due March 1, 2022. The next monthly mortgage payment of $1,320.15 will be due April 1, 2022. In addition to post-petition mortgage payments, the

Debtor also must pay the Chapter 13 Trustee $975.00 per month. ECF No. 181. Relevant Procedural History On May 3, 2018, the Debtor filed a voluntary Chapter 13 petition (the “Petition Date”). ECF No. 1. On Schedule D (Creditors Who Have Claims Secured by Property), the Debtor listed the Bank and acknowledged it held a secured claim of $380,000.00 on property located at located at 42 Pennsylvania Avenue, East Haven, Connecticut (the “Property”). ECF No. 1, Schedule D, p. 18. The Bank did not file a proof of claim by the deadline of July 12, 2018.1 Rather, the Debtor filed a proof of claim (“POC 5-1”) on the Bank’s behalf pursuant to 11 U.S.C. § 501(c)2 asserting she owed a mortgage arrearage of $57,000.00 on the Petition Date. POC 5-1. The Debtor later amended the proof of

claim to assert an arrearage of $68,551.32. POC 5-2. Prior to confirmation of a Chapter 13 plan, on May 20, 2019, the Bank moved for relief from the automatic stay alleging the Debtor had failed to make post-petition monthly mortgage payments pursuant to Bankruptcy Code § 362(d)(1). ECF No. 50. The Debtor objected. ECF No. 51. The Bank and the Debtor resolved this dispute by agreeing the post-petition mortgage payments totaling $11,551.32 for the months August 1, 2018 through June 1, 2019 would be incorporated into and paid through the Debtor’s Fifth

1 Counsel for the Bank, Attorney Sara Buchanan, filed her notice of appearance on behalf of the Bank on July 17, 2018. ECF No. 22. 2 Title 11, United States Code, is the “Bankruptcy Code.” References to statutory sections are to the Bankruptcy Code unless otherwise specified. Amended Chapter 13 plan (the “Stipulation”). ECF Nos. 56, 57; ECF No. 258-2. The Stipulation called for the Debtor to resume making post-petition mortgage payments directly to the Bank starting with a $1,106.78 payment due July 1, 2019. ECF Nos. 53, 56; ECF No. 258-2. The following month, on July 12, 2019, the court confirmed the Debtor’s Fifth Amended Chapter 13 plan (the “5th Amended Plan”). ECF No. 68.

According to the Bank, the Debtor made a payment on July 19, 2019, of $1,097.00 – slightly less than the full amount due for July 2019. ECF No. 265. I note the Debtor routinely makes monthly installment payments in amounts that are not the exact amount then due, making the accounting process for the Bank, the court and herself needlessly more difficult. On September 23, 2019, the Bank filed an Affidavit of Non-Compliance alleging the Debtor failed to make the full monthly payments due for July, August, and September 2019. ECF No. 70. The Debtor objected and requested time to make a payment of $2,200. ECF No. 71. Over the Debtor’s objection and after numerous hearings and

continuances, the court granted the Bank’s request for relief from the automatic stay on April 23, 2020. ECF No. 104. A month later, in May of 2020, the Debtor sought to modify her confirmed 5th Amended Plan, reimpose the automatic stay, and incorporate her post-petition, post- confirmation mortgage arrearage stemming from July 1, 2019 into a modified plan. ECF No. 110. The Bank objected. ECF No. 119. September 24, 2020 Hearing After several more continuances, the court held a hearing on September 24, 2020 to consider Debtor’s modification request. Prior to the September 24th hearing, the Bank filed an accounting indicating $23,255.64 was owed for post-petition payments through August 1, 2020. ECF No. 152. During the hearing, the Bank’s counsel acknowledged the accounting did not reflect that the post-petition mortgage arrearage of $11,551.32 through June 1, 2019 had been incorporated by the Stipulation into the 5th Amended Plan. ECF No. 152. Subtracting the $11,551.32 arrearage addressed in the 5th Amended Plan

from the total of $23,255.64, Bank’s counsel asserted the Debtor owed $11,704.32 for the post-confirmation months based upon counsel’s rough calculation. ECF No. 164 at 00:09:50 – 00:16:50.3 But, the Bank did not include in this post-confirmation amount the payment due for September 2020 – the payment due for the month the hearing was held and that had become due since the Bank’s accounting was filed. ECF No. 164 at 00:22:15 – 00:23:30. Debtor’s counsel urged the court to reimpose the stay because he was holding checks totaling $9,000 to pay down the post-confirmation arrearage, which after payment, would reduce the arrearage owed to approximately $2,000. ECF No. 164 at 00:09:05 -

00:09:47. At the conclusion of the September 24th hearing, the court reimposed the stay, ordered the Debtor to provide her counsel with a check for $1,198.34 representing another month’s payment owed to the Bank, and continued the hearing to consider the Debtor’s motion to modify her confirmed plan to October 29, 2020 (for one month). ECF No. 164 at 00:30:48 – 00:32:38; see also, ECF No. 166.

3 Bank’s counsel also indicated the Bank was holding about $226.00 of unapplied funds received from the Debtor in a suspense account. ECF No. 164 at 00:09:50 – 00:16:50. October 29, 2020 Hearing During the continued hearing on October 29, 2020, Debtor’s counsel indicated he had received the additional funds from the Debtor. Debtor’s counsel also requested the court confirm the Debtor’s proposed Seventh Modified Chapter 13 Plan containing a non-

standard provision providing the Debtor would bring herself current on the post- confirmation arrearage.4 ECF No. 180 at 00:02:11 – 00:03:38; ECF No. 172, p. 4. The non-standard provision stated: The post-confirmation arrearage of approximately $12,578.00 due Bank of New York Mellon shall be paid in a lump sum direct to the said mortgagee outside the plan immediately upon confirmation of this modified plan and the automatic stay with respect to the debtor’s real property at 42 Pennsylvania Ave., East Haven CT shall remain in effect. ECF No. 172, p. 11.

Bank’s counsel represented the Bank had reviewed the Debtor’s proposed Seventh Modified Chapter 13 Plan and supported confirmation. ECF No. 180 at 00:04:47 – 00:05:01. There is no clarity in the record or in the proposed plan explaining which monthly payments comprised this post-confirmation arrearage amount of “approximately” $12,578.00.

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Cite This Page — Counsel Stack

Bluebook (online)
Kristine R. Ryan, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kristine-r-ryan-ctb-2022.