# United States Bankruptcy App ellate Panel

For the Eig hth Circu it

__ __ __ __ __ __ __ __ __ __ __ __ __ _

No. 1 6- 60 37

__ __ __ __ __ __ __ __ __ __ __ __ __ _

In re: Pau l M. W ojci ec how ski ; Ma ry E

. W oj ci ec how ski

, al so known as Mar y Aub ert in

ll ll ll ll ll ll ll ll ll ll l Deb to r s

----- ----- ----- ----- ----- -----

Su sa n H. Me ll o; Su sa n H. Me ll o, LLC

ll ll ll ll ll ll ll ll ll ll l Cr ed it or

s - Ap pe ll an ts

v.

Pau l M . W ojci ech ows ki ; M ary E. W ojci ech ows ki

ll ll ll ll ll ll ll ll ll ll l Deb to rs - App el le es

Dian a Sp uh l Dau gh ert y

ll ll ll ll ll ll ll ll ll ll l Tr us te e - App el le e

__ __ __ __ __ __
App eal fro m

Uni te d S ta te s B an kr up tc y Co ur t fo r th e Eas te rn Dis tri ct of M is so ur i - St . Lou is

__ __ __ __ __ __

Su bm it te d: May 2, 2 01 7
Fil ed : J un e 1 5, 2 01 7

__ __ __ __ __ __

Befo re KRESSEL, NAIL, and SHODEEN, Ban kr up tc y Ju dg es

.

__ __ __ __ __ __NAIL, Ban kr up tc y Ju dg e.

Su sa n H. Mel lo an d Su sa n H. Mel lo

, LLC (co ll ec t i v e l y, "M el lo ") ap pe al th e

Octo be r 21

, 20 16 or de r of th e ba nk ru pt cy co ur t c o nf irming Deb to rs Pau l M. 1

W ojci ech ows ki an d M ary E. W ojci ech ows ki 's s eco nd am en de d p la n. W e aff irm. 2

BACKGROUND

Deb to rs fil ed a pe ti ti on f

o r r e l i ef un de r ch ap te r 13 of th e ba nk ru pt cy co de in
Apr il 20 16

. Deb to rs li st ed Mel lo

, who ha d rep res en te d Deb to r Pau l W ojci ech ows ki

in hi s pr e-p et it io n di vo rce pr oc eed in g an d was st il l owe d at to rn ey fees fo r he r

se rv ic es , on th ei r sc he du le E/F.

Ove r th e ne xt se ve ral m on th s, Mel lo fil ed nu m ero us m ot io ns , ob jecti on s, an d

an ad ve rs ary pr oc eed in g. Two ul ti m at e ly le d to th is ap pe al : Mel lo 's am en de d 3

m ot io n to di sm is s Deb to rs ' cas e an d M e l l o ' s am en de d ob jecti on to Deb to rs ' se co nd

am en de d p la n. 4

The Hon or ab le Kath y A. Su rrat t-S ta t e s , C hi ef Ju dg e, Uni te d St at es 1

Ban kr up tc y Co ur t fo r th e Eas te rn Dis tri ct of M is so ur i.

In he r n o t i c e o f ap pe al , M el lo al so pu rp or te d to ap pe al se ve ral ot he r or de rs

. 2

Howev er, sh e d id no t m ean in gf ul ly add res s t he se ot he r or de rs in he r op en in g br ie f.
Co ns eq ue nt ly, we do no t ad dr es s th em , ei th er. Se e Reu te r v. Cu tc li ff ( In re Reu te r ),
68 6 F .3d 51 1, 5 15 n.3 (8t h C ir. 2 01 2)

.

The se are c o ge nt ly su m

m ari zed in Deb to rs ' br ie f an d ne ed no t be rep eat ed 3

he re.

Two earl ie r it erat io ns of Deb to rs ' pl an ha d no t be en co nf irmed. W it h cert ai n 4

ex cep ti on s, th e pr op on en t of a ch ap te r 13 pl an m ay m od ify hi s or he r pl an at an y ti m e ei th er befo re or after co nf irmatio n. 11 U.S.C. §§ 13 23 (m od ifi cat io n of pla n bef or e

co nf irmatio n) an d 13 29 (m od ifi cat io n of pl an aft er co nf ir mat i o n)

. In so m e juri sd ic ti on s, s uc h m od ifi ed pl an s ar e refe rred to as a m en de d p la ns

.

-2

-In he r am en de d m ot io n to di sm is s , Mel lo al le ge d Deb to rs ha d fil ed th ei r

pe ti ti on in ba d fai th an d li st ed a nu m be r of pe rcei ve d erro rs an d om is si on s in Deb to rs '

sc he du le s an d st at em en ts an d in Deb to rs ' te st im on y at th ei r m eet in g of cred it or s. In

he r am en de d ob

jecti on to Deb to rs ' se co nd am en de d pl an , Mel lo al le ge d Deb to rs '

se co nd am en de d pl an ha d no t be en pr op os ed in go od fai th an d ag ai n li st ed a nu m be r

of pe rcei ve d erro rs an d om is si on s in Deb to rs ' sc he du le s an d st at em en ts an d in

Deb to rs ' te st im on y at th ei r m eet in g of cred it or s. Mel lo al so al le ge d Deb to rs ha d no t 5

ap pl ie d th ei r di sp os ab le in co m e to pa y m en ts un de r th ei r se co nd am en de d pl an , Deb to rs ' se co nd am en de d pl a n was no t feas ib le

, an d Deb to rs ha d fai le d to pa y a
do m es ti c su pp or t o bl ig at io n.

Bo th Mel lo 's am en de d m ot io n to di sm is s an d Deb to rs ' se co nd am en de d pl an

cam e b efo re t he ba nk ru pt cy co ur t i n Oct ob er 2 01 6. After h eari ng th e arg um en ts of

co un se l an d co ns id eri ng th e vo lu m in ou s reco rd

, th e ba nk ru pt cy co ur t de ni ed Mel lo 's

am en de d mo t i o n to di sm is s, ov erru le d Mel lo 's ob jecti on s to co nf

irmatio n, an d

6

co nf irmed Deb to rs ' se co nd am en de d pl an

. The ba nk ru pt cy co ur t's or al ru li ng s were

m em or ia li zed i n an or de r co nf irming Deb to rs ' se co nd am en de d pl an en te red

Octo be r 21 , 20 16 an d a n ord er den y in g Mel lo 's am en de d m ot io n to di sm is s ent ered

Nov em be r 10 , 20 16

.

On Octo be r 24

, 20 16

, Mel lo fil ed a m ot io n to am en d, in te r al ia

, th e ba nk ru pt cy

co ur t's or de r co nf

irming Deb to rs ' se co nd am en de d pl an

. On Nov em be r 10

, 20 16

, th e
ba nk ru pt cy co ur t en te red an or de r de nyin g Mel lo 's m ot io n to am en d. On

W hi le d i ffer en tl y fo rm at te d, Mel lo 's am en de d m ot io n to di sm is s an d he r 5

am en de d ob

jecti on to Deb to rs ' se co nd am en de d pl an a p p e a r t o id en ti fy th e sa m e
pe rcei ve d e rro rs an d o m is si on s.

The tru st ee al so ob

jecte d to Deb to rs ' se co nd am en de d pl a n. The tru st ee's 6

ob jecti on s wer e res ol ve d o n t he reco rd

.

-3

-Nov em

be r 23

, 20 16

, Mel lo fil ed a n o t i c e of ap pe al

. Mel lo 's ap pe al is th eref or e 7

ti m el y

. Se e Fed .R.Ban kr .P. 80 02 (a) a nd (b)

.

STANDARD OF REVIEW

Mel lo co nt en ds th e ba nk ru pt cy co ur t e r r e d in co nf irming Deb to rs ' se co nd

am en de d pl an

. To the ex te nt th is im pl ic at es th e ba nk ru pt cy co ur t's fin di ng s of fact

,

we rev ie w th os e fin di ng s for clea r erro r. Is la mov v. Ung ar ( In re Un ga r ), 63 3 F .3d

67 5, 67 9 (8 th Ci r. 20 11 ). To th e ex te nt it im pl ic at es th e b a n k r u p t c y c ou rt' s

co nc lu si on s o f la w, we rev ie w th os e co nc lu si on s de no vo

. Ung ar , 63 3 F .3d at 6 79

.

Mel lo als o c on te nd s t he ba nk ru pt cy co ur t er red in de nyin g h er re qu es t for an

ev id en ti ary he ari ng on th e co nf irmatio n of D eb tors ' se co nd am en de d pl an

. W e rev ie w
th e ba nk ru pt cy co ur t's de ci si on no t to co nd uc t an ev id en ti ary he ari ng fo r an ab us e of

di sc ret io n. Uni te d St at es v. La ng e ( In re Net al

, In c. ), 49 8 B.R. 22 5, 22 8 (B.A.P. 8t h

Ci r. 20 13 ).

DISCUSS ION

Mel lo 's pr in ci pa l arg um en t is th e ba nk ru pt cy co ur t erre d in no t co nd uc ti ng an

ev id en ti ary he ari ng on Debt or s' s eco nd am en de d p la n. We di sa gr ee.

In he r no ti ce of ap pe al

, Mel lo di d no t el ect to ha ve he r ap pe al h eard by th e 7

di st ric t co ur t. Se e Fed .R.Ban kr .P. 80 05 (a). Mel lo th en fil ed an "am en de d/ co rrec te d"

no ti ce of ap pe al in whi ch sh e at te m pt ed to el ect to h av e he r ap pe al he ard by th e di st ric t co ur t. By or de r d a t e d Decem be r 1, 20 16

, we de em ed Mel lo 's
"am en d ed /c or rect ed " no ti ce of ap pe al to be un ti m el y an d th eref or e in effe ct iv e to de pr iv e us of ju ris di ct io n. Mel lo al so fil ed a "M ot io n fo r App eal to go to Dis tri ct
Co ur t no t to BAP" an d a "Su pp le m en ta l Mo ti on fo r App eal to go to Dis tri ct Co ur t no t

to BAP." By or de r da te d Decem be r 6, 20 16

, we de ni ed Mel lo 's su pp le m en ta l m ot io n.

-4

-W hi le th e pa rti es ap pe ar to as su m e Mel lo req ue st ed su ch an ev id en ti ary

he ari ng , th e reco rd is no t en ti rel y cl ear on th is po in t. Dur in g th e he ari ng on Mel lo 's

a men de d m ot io n to di sm is s, Mel lo st at ed un am bi gu ou sl y , "I wou ld li ke to h a v e a n

ev id en ti ary he ari ng

. . . ." Dur in g th e he ari ng on Mel lo 's am e n d e d ob jecti on to

Deb to rs ' se co nd amend ed pl an , ho wev er, Mel lo as ke d on ly "t o be he ard on [h er
ob jecti on s]" an d to "h av e a ch an ce to ke ep th e reco rd op en

. " Neit he r was a cl ear

ex pr es si on of a de si re fo r an ev id en ti ary he ari ng

.

In an y ev en t, "[n ]oth in g in th e st at ut es or cas e la w req ui res a he ari ng ev ery ti m e

th e is su e of go od fai th is rai se d i n a Ch ap te r 13 pro ceed in g. Th e ba nk ru pt cy co ur t,

ex erci si ng it s so u n d d i s c ret io n, is in th e be st po si ti on to de te rm in e whe n an

ev id en ti ary he ari ng on th e is su e of go od fai th is ne ces sa ry ." No re en v. Sl at te ng re n , 97 4 F .2d 75 , 76 (8t h C ir. 1 99 2)

.

As pr ev io us ly no te d, in bo th he r am en de d m ot io n to di sm is s an d he r am en de d

ob jecti on to Deb to rs ' se co nd am en de d pl an , Mel lo id en ti fie d a nu m be r of pe rcei ve d

erro rs an d om is si on s in Deb to rs ' sc he du le s an d st at em en ts an d in Deb to rs ' te st im on y

at th e i r mee ti ng of cred it or s. In de nyin g Mel lo 's am en de d m ot io n to di sm is s, th e
ba nk ru pt cy co ur t he ard Mel lo 's arg um en t an d co ns id ered bo th th e vo lu m in ou s reco rd

an d th e pe rcei ve d erro rs an d om is si on s. The ba nk ru pt cy co ur t th en ex pl ai ne d wh y
it di d no t be li ev e th e pe rcei ve d e r r o r s an d om is si on s de m on st rat ed a la ck of go od

fai th on Deb to rs ' pa rt, refere nc in g c ha ng es in Deb to rs ' ci rcu m st an ces ov er tim e, th e

of t se en ne ces si ty fo r ch ap te r 13 de bt or s to am en d th ei r sc he du le s an d st at em en ts

, an d

th e tr us te e's rol e in rev ie win g c ha pt er 1 3 d eb to rs ' sc he du le s an d s ta te m en ts

.

Mel lo di d no t id en ti fy

–a nd in de ed ha s y et to id en ti fy –wh at ad di ti on al ev id en ce
sh e wou ld of

fer at an ev id en ti ary he ari ng

. Se e Y eh ud -Mo no ss on USA, In c. v. Fok ken a ( In re Y eh ud -Mo no ss on USA, In c. ), 45 8 B.R. 75 0, 75 6 (B.A.P. 8t h Ci r. 20 11 ). Und er

th e ci rcu m st an ces , e v e n a ss um in g Mel lo 's req ue st s "t o be he ard " an d "t o ke ep th e

reco rd op en " co ul d reas on ab ly b e co ns t r u e d as a req ue st fo r an ev id en ti ary h eari ng

-5

-on Deb to rs ' se co nd am en de d pl an , we can no t sa y th e ba nk ru pt cy c o u r t ab us ed it s

di sc ret io n i n d en y in g M el lo 's re qu es t.

Mel lo al so arg ue s th e ba nk ru pt cy co ur t erre d in no t co ns id eri ng he r ob jecti on s

to co nf irmatio n be cau se th e tru st ee di d no t joi n in Mel lo 's ob jecti on s. Aga in

, we
di sa gr ee.

Mel lo po in ts to th ree st at em en ts m ad e by th e ba nk ru pt cy co ur t, th e fir st two in

co nn ect io n wit h Mel lo 's am en de d m ot io n to di sm is s an d th e th ird in co nn ect io n wit h

Mel lo 's ob

jecti on s to co nf

irmatio n: (1 ) "I'm lo ok in g to th e tru st ee to se e, ba se d on th e

tru st ee's rev ie w of th es e sc he du le s an d st at em en ts

, I ha ve n't se en an y th in g fil ed by th e

tru st ee" ; (2 ) "[I ]t's h a r d fo r m e to be li ev e th at [th e tru st ee's ] of fic e ha s m is se d th is

m an y th in gs "; an d (3 ) "[I ]f th e tru st ee ha sn 't rai se d th at is su e, th en cert ai nl y I wou ld

ov erru le th at ob

jecti on ."

Non e of th es e st at em en ts su pp or t Mel lo 's arg um en t. A ch ap te r 13 tru st ee is

st at u t or il y ob li ga te d to "i nv es ti ga te th e fin an ci al affa irs of th e de bt or " an d "ap pe ar

an d be he ard at an y he ari ng th at co nc ern s

. . . c on f i r mat i o n o f a pl an [.]" 11 U.S.C.
§§ 70 4( a)(4 ) (in co rp or at ed by refe ren ce in 11 U.S.C. § 1 30 2( b) (1 )) and 13 02 (b )(2 ).

The ba nk ru pt cy co ur t's fir st st at em en t is a co nf irmatio n th at th e tru st ee ha d ta ke n no

fo rm al act io n reg ard in g Debt or s' s ch ed ul es an d s ta te m en ts . The b an kr up tc y co ur t's

se co nd st at em en t is a reco gn i t i o n o f ho w well th e tru st ee or di na ril y carr ie d ou t th e

tru st ee's du ti es

. Neit he r can reas on ab ly be co ns tru ed to su gg es t th e ba nk ru pt cy co ur t

di d n ot co ns id er Me ll o's ob jecti on s t o Deb to rs ' se co nd am en de d p la n.

The ba nk ru pt cy co ur t's th ird st at em en t f o l l owe d a di sc us si on reg ard in g an

al le ge d do m es ti c su pp or t ob li ga ti on

. W it ho ut pr ov id in g a n y sp eci fic s, Mel lo 8

One of th e req ui rem en ts fo r co nf irmatio n o f a ch ap te r 13 pl an is "t he de bt or 8

ha s pa id al l am ou nt s th at are req ui red to be pa id un de r a do m es ti c su pp or t ob li ga ti on

-6

-ob

jecte d to co nf

irmatio n be cau se Deb to rs ' se co nd am en de d pl an d i d "n ot se em to

m eet th e req ui rem en t to se e al l DSOs are pa id ." (Em ph as is ad de d.) The ba nk ru pt cy

co ur t's st at em en t was cl earl y m a d e in refe ren ce to th is pa rti cu la r ob jecti on , no t

Mel lo 's ot he r ob

jecti on s. Th e tru st ee, who –i t be ars rep eat in g– was st at ut or il y
ob li ga te d t o i nv es ti ga te Deb to rs ' fin an ci al affa irs , d id no t o bjec t t o Deb to rs ' se co nd

am en de d pl an on th is ba si s, an d Mel lo d i d no t id en ti fy –a nd in de ed ha s y et to

id en ti fy –a ny am ou nt s th at Deb to rs were r e q u i r e d to pa y po st -p et it io n an d th at th ey

ha d no t pa id pr io r to th e co nf irmatio n he ari ng

. In li gh t of th e fo reg oi ng , we co ns tru e

th e b an kr up tc y co ur t's st at em en t to be th e res ul t o f th e b an kr up tc y co ur t's weig hi ng
Mel lo 's va gu e a n d u n s u pp or te d ob jecti on ag ai ns t th e fact th at th e tru st ee di d no t

ob ject to Deb to rs ' s e c o n d am en de d pl an on th is ba si s, no t su pp or t fo r Mel lo 's

arg um en t th at th e ba nk ru pt cy co ur t di d no t co ns id er M el lo 's ob jecti on s to

co nf irmatio n. Se e Fon de r v. Uni te d St at es , 97 4 F.2 d 99 6, 99 9- 10 00 (8 th Ci r. 19 92 )

9
("Ora l fin di ng s an d co n c l us io ns un de r [Fed .R.Ci v.P .] 52 (a) [m ad e ap pl ic ab le to

co nf irmat i o n h e ari ng s by Fed .Rs .Ban kr .P. 30 15 (f), 70 52

, an d 90 14 (c)] 'm us t be

li be ral ly co ns tru ed an d fo un d to be in co ns on an ce wit h th e jud gm en t if th e jud gm en t

ha s s up po rt i n t he reco rd ev id en ce.'" ).

Fi na ll y , Mel lo arg ue s th e ba nk ru pt cy co ur t erred in ov erru li ng he r ob jecti on s

an d c on fir m in g Deb to rs ' se co nd am en de d p la n. Ag ai n, we d is ag ree.

A s p r e v i o us ly no te d, Mel lo ob jecte d to Deb to rs ' se co nd am en de d pl an on

se v e r al gr ou nd s: Sh e al le ge d Deb to rs ' se co nd am en de d pl an was no t pr op os ed in

an d t ha t fi rs t b eco m e p ay ab le aft er t he da te of t he fil in g o f th e p et it io n i f th e d eb to r is req ui red by a jud ic ia l or ad m in is tra ti ve or de r, or by stat ut e, to pa y su ch do m es ti c

su pp or t o bl ig at io n[ .] " 1 1 U.S.C. § 13 25 (a)( 8)

.

The ba nk ru pt cy co ur t qu es ti on ed

– w i t ho ut de ci di ng –wh et he r Mel lo ha d 9

s t an di ng to rai se th is pa rti cu la r ob jecti on

. Bec au se ne it he r Deb to rs no r th e t r u s t e e rai se d t hi s i ss ue on ap pe al , we do no t ad dr es s i t.

-7

-go od fai th ; sh e al le ge d Deb to rs ha d no t ap pl ie d th ei r di sp os ab le in co m e to pa y m en ts

un de r th ei r se co nd am en de d pl an ; sh e al le ge d Deb to rs ' se co nd am en de d pl an was no t

feas ib le ; an d s h e al le ge d Deb to rs ha d fai le d to pa y a do m es ti c su pp or t ob li ga ti on

. Howev er, in he r op en in g br ie f, Mel lo ad dr es se d on ly th e fir st an d th e la st of th e se

gr ou nd s. Co ns eq ue nt ly, sh e ha s waiv ed an y is su e reg ard in g Deb to rs ' co m m it m en t of

th ei r di sp os ab le in co m e an d an y is su e reg ard in g th e feas ib il it y of Deb to rs ' se co nd

am en de d pl an

. Se e Reu te r v. Cu tc li ff ( In re Reu te r ), 68 6 F.3 d 51 1, 51 5 n.3 (8 th Ci r.

20 12 ).

W it h res p e c t to he r ob jecti on th at Deb to rs ' se co nd am en de d pl an was no t

pr op os ed in go od f

a i t h

, Mel lo co nt en ds th e pe rcei ve d erro rs an d om is si on s sh e
id en ti fie d in bo th he r am en de d m ot i o n t o d i sm is s an d he r am en de d ob jecti on to

Deb to rs ' se co nd am en de d pl an de m on st rat e a l a c k of go od fai th on Deb to rs ' pa rt.

Tho ug h th is is on e pe rm is si bl e vi ew of th e reco rd

, th e ba nk ru pt cy co ur t det erm in ed

ot he rwis e, fo r th e reas on s st at ed ab ov e. Thi s is al so a pe rm is si bl e vi ew of th e reco rd

. Tha t be in g so , we can no t s a y t h e ba nk ru pt cy co ur t's de ci si on to ov erru le th is

ob jecti on was cl earl y erro ne ou s. And er so n v. Ci ty of

Bess emer Ci ty

, No rt h Ca ro li na , 47 0 U.S. 56 4, 57 4 (19 85 ) ("Wher e th ere are two perm is si bl e vi ews of th e ev id en ce,

th e fac tfi nd er’s ch oi ce b et ween th em can no t b e cl earl y

erro ne ou s.”)

.

W it h res pe ct to he r ob

jecti on th at Deb to rs ha d al le ge dl y fai le d to pa y a
do m es ti c su pp or t ob li ga ti on , as pr ev io us ly no te d, Mel lo di d no t id en ti fy an y am ou nt s

th at Deb to rs were req ui red to pa y po st -p et it io n an d th at th ey ha d no t pa id pr io r to th e

co nf irmatio n he ar in g. Mel lo 's ob jecti on was , th eref

or e, hypo th et ic al at be st

. Mo reo ve r, th e b a n k r up tc y co ur t pr op erl y no te d th e ab se nc e of Deb to r Pau l

W ojci ech ows ki 's ex -s po us e, who was in th e be st p os it io n to kn ow if Deb to rs ha d

m ad e al l req ui red po st -p et it ion dom es tic supp or t ob li ga ti on pa y m en ts an d wou ld ha ve

ha d ev ery reas on to ob

ject to Deb to rs ' se co nd am en de d pl an if Deb to rs ha d no t m ad e

th os e pa y m en ts

. Fo r th es e reas on s, we can no t sa y th e ba nk ru pt cy co ur t's de ci si on to

ov erru le th is ob

jecti on was c le arl y

erro ne ou s, ei th er.

-8

-CONCLUSION

The ba nk ru pt cy co ur t di d no t ab us e it s di sc ret io n in de n yin g Mel lo 's req ue st

fo r an e v i d e n ti ary he ari ng on Deb to rs ' se co nd am en de d pl an , an d it s de ci si on to

ov erru le Mel lo 's o b

je c t i o ns an d co nf

irm Deb to rs ' se co nd am en de d pl an was no t

cl earl y erro ne ou s. Thu s, we affi rm th e ba nk ru pt cy co ur t's Octo be r 21

, 20 16 or de r

co nf irming Debt or s' s eco nd am en de d p la n.

-9

-