United States District Court, W.D. Wisconsin
OPINION AND ORDER
WILLIAM M. CONLEY District Judge
three appeals from decisions of the Bankruptcy Court of the
Western District of Wisconsin comprise debtor Sheila M.
Spencer's latest attempt to delay foreclosure on her
home. Spencer appeals the court's decision to lift the
automatic stay in the 15-cv-332 appeal; she appeals the
court's decision to dismiss the adversary proceeding in
the 15-cv-327 appeal; and she appeals the court's
decision to dismiss her Chapter 13 petition in the 15-cv-455
appeal. After reviewing the parties' submissions and the
bankruptcy records, the court now affirms all three
April 3, 2015, Spencer filed a Chapter 13 voluntary
bankruptcy petition. In re Spencer, No. 15-11204
(Bankr. W.D. Wis. Apr. 3, 2015) (dkt. #1). On April 16, 2015,
creditor PNC Bank, N.A., filed a motion for relief from stay.
Id. (dkt. #10). The bankruptcy court conducted an
evidentiary hearing on May 11, 2015, and issued an opinion on
May 15, 2015, in which the court found that “Spencer
has engaged in a scheme to delay creditors involving multiple
bankruptcy filings affecting real property, ” and
therefore PNC Bank was entitled to relief from the automatic
stay under 11 U.S.C. § 362(b)(20). Id. (dkt.
April 26, 2015, Spencer also filed an adversary proceeding
against PNC Bank, N.A., and Freddie Mac, among other
individuals and corporate entities, seeking a judgment
“declaring the relative rights, interests, obligations
and responsibilities concerning Ms. Spencer's Homestead,
” “declaring the mortgage recorded in the Wood
County Register of Deeds purporting to encumber Ms.
Spencer's Homestead to be adjudged null and void, ”
“determining the identity and capacity of any parties
entitled to receive adequate protection payments and/or the
proceeds of sale of the Homestead” and
“determining the amount of each such claim or
interest.” Spencer v. Fed. Home Loan Mrtg.
Corp., No. 15-00060-cjf (Bankr. W.D. Wis. Apr. 26, 2015)
(dkt. #1). On April 30, 2015, the bankruptcy court ordered
sua sponte that Spencer brief why her adversary
proceeding is not barred by the Rooker-Feldman
doctrine. Id. (dkt. #6). After review of
Spencer's response, the bankruptcy court dismissed the
adversary proceeding for lack of subject matter jurisdiction
in a decision also dated May 15, 2015, finding Spencer's
claims were indeed barred by Rooker-Feldman.
Id. (dkt. #14); see also Id. (dkt. #15).
30, 2015, the court held a preliminary hearing on the plan
for confirmation as well as PNC's motion to dismiss the
case. During the hearing, Attorney Nora as counsel for
Spencer acknowledged that the amount to be distributed to
unsecured creditors was overstated. In re Spencer,
No. 15-11204 (Bankr. W.D. Wis.) (dkt. #122) 9. Judge Furay
When can we anticipate at least a plan amendment to address
the distribution issue, if you will, if I can use that term
as shorthand, that's been identified by the trustee?
MS. NORA: If I may have ten days, Your Honor . . . .
THE COURT: I was just asking for a date, Ms. Nora. So if I
said that a plan amendment will be filed no later than July
10, 2015, to address the plan distribution -- I'm making
MS. NORA: May I have until July 13th, Your Honor, just
because I am in proceedings in a remote location on the 10th?
But I will hasten to get this done.
THE COURT: All right. So I will make a note that a plan
amendment will be filed no later than July 13, 2015, to
address the plan distribution issue to unsecured creditors. .
. . If the amendment is not filed by that date, the case will
Id. 10. During that same exchange, Attorney Nora
also agreed to provide a declaration concerning Spencer's
failure to provide tax returns from 2011 to 2013, also by
July 13. Id. at 12.
one-page order dated that same day, June 30, 2015, the
bankruptcy court ordered:
A plan amendment will be filed no later than July 13, 2015,
to address the plan distribution issue to unsecured
creditors. Further, the Debtor will provide an affidavit or
other evidence to the trustee with respect to the 2011
through 2013 tax returns and the fact that Debtor was not
required to file such returns by June 13, 2015. If the