Bullard v. Blue Hills Bank - 575 U.S. 496, 135 S. Ct. 1686 (2015)

Rule:

Chapter 13 of the Bankruptcy Code affords individuals receiving regular income an opportunity to obtain some relief from their debts while retaining their property. To proceed under Chapter 13, a bankruptcy debtor must propose a plan to use future income to repay a portion (or in the rare case all) of his debts over the next three to five years. If the bankruptcy court confirms the plan and the debtor successfully carries it out, he receives a discharge of his debts according to the plan. The bankruptcy court may, however, decline to confirm a proposed repayment plan because it is inconsistent with the Code. Although the debtor is usually given an opportunity to submit a revised plan, he may be convinced that the original plan complied with the Code and that the bankruptcy court was wrong to deny confirmation. An order denying confirmation is a not a final order that the debtor can immediately appeal.

Facts:

After filing for Chapter 13 bankruptcy, petitioner Bullard submitted a proposed repayment plan to the Bankruptcy Court. Respondent Blue Hills Bank, Bullard's mortgage lender, objected to the plan's treatment of its claim. The Bankruptcy Court sustained the Bank's objection and declined to confirm the plan. Bullard appealed to the First Circuit Bankruptcy Appellate Panel (BAP). The BAP concluded that the Bankruptcy Court's denial of confirmation was not a final, appealable order, but heard the appeal under a provision permitting interlocutory appeals “with leave of the court,” §158(a)(3), and agreed with the Bankruptcy Court that Bullard's proposed plan was not allowed. Bullard appealed to the First Circuit, but it dismissed for lack of jurisdiction. It concluded that its jurisdiction depended on the finality of the BAP's order, which in turn depended on the finality of the Bankruptcy Court's order. The First Circuit held that the Bankruptcy Court's order denying confirmation was not final so long as Bullard remained free to propose another plan. Certiorari was granted. 

Issue:

Was the Bankruptcy Court's denial of confirmation a final, appealable order? 

Answer:

No.

Conclusion:

The court affirmed the judgment, holding that a bankruptcy court's order denying confirmation of a bankruptcy debtor’s Chapter 13 plan with leave to propose another plan was not a final order that the debtor could immediately appeal, since the relevant proceeding was the entire process of considering the plan which became final only when a plan was confirmed or the case was dismissed for failure to propose a confirmable plan.