In re: Ross, No. 15-2222 (3d Cir. 2017)Annotate this Case
Raymond and Sandra have lived in their Ambler, Pennsylvania home since 1993. They took on a mortgage from AmeriChoice. They fell behind on their payments. In 2012, AmeriChoice filed a foreclosure action; AmeriChoice obtained a default judgment. AmeriChoice scheduled a sheriff’s sale. The day before that sale, Raymond, acting alone, filed a Chapter 13 bankruptcy petition, triggering the automatic stay and preventing the sale. The case was dismissed six months later after Raymond failed to make payments. AmeriChoice rescheduled the sale. On the rescheduled date, Raymond filed a second Chapter 13 petition. The Bankruptcy Court granted relief from the stay. On the second rescheduled date, Sandra filed her Chapter 13 petition. Days later the court dismissed Sandra’s petition for failure to obtain prepetition credit counseling. In Raymond’s second case, AmeriChoice moved (11 U.S.C. 1307(c)) to either convert Raymond’s case to Chapter 7 or dismiss, arguing bad faith use of bankruptcy. Raymond unsuccessfully moved to postpone a hearing and the day before the hearing sought dismissal under section 1307(b). Raymond did not appear at the hearing. The court dismissed Raymond’s case, stating that he was “not permitted to file another bankruptcy case without express permission.” Sandra was subsequently enjoined from filing bankruptcy for 180 days. The Third Circuit vacated. While a bankruptcy court may issue a filing injunction while approving a section 1307(b) voluntary dismissal, the injunction against Raymond, beyond what had been requested, was not supported by reasoning.