Appeal of Denial of Plan Confirmation

16 Oct Appeal of Denial of Plan Confirmation

An order denying confirmation of a Chapter 13 plan is not considered a final order from which an appeal can be taken. The theory is that upon denial of plan debtors can propose an alternate plan. However, when there is a dispute with an objector that raises an unsettled disputed issue of law, a debtor often wants to appeal from an adverse order. The only sure way to do this is to fail to file an alternative plan and allow the case to be dismissed. A dismissal is a final order. However, once a case is dismissed the benefits of the automatic stay also disappear. Therefore, it is necessary to seek and obtain a stay of the dismissal order pending appeal. In order to obtain a stay pending appeal a debtor must establish a likelihood of success on merits of the appeal, irreparable harm to the debtor if relief is not granted, potential harm to debtor greater than injury the adverse party would suffer if stay is granted, and that stay would not harm public policy.

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