Denial of chapter 13 plan confirmation not a final order for appeal.
Affirming the First Circuit, the unanimous opinion of the Supreme Court, written by Chief Justice Roberts, held that an order denying confirmation was not a final order that the debtor could immediately appeal. The bank holding a mortgage on a multi-family house objected to the chapter 13 debtor’s proposed plan to bifurcate the debt and pay only $5,000 on the $101,000 unsecured portion, while paying the regular mortgage payments to satisfy the secured portion over the life of the original loan. The bankruptcy court denied confirmation, rejecting the hybrid plan and holding that the secured portion of the debt would have to be paid in full within the plan term. The Court held that while confirmation, like case dismissal, alters that status quo, denial of confirmation that is not coupled with case dismissal leaves the debtor with a right to propose another plan.
A debtor’s knowledge that denial of confirmation is not a final, appealable order should encourage debtors to work with creditors and the trustee in reaching a confirmable plan promptly. The Court also pointed to the potential of interlocutory appeals and certification of important issues for appeal as remedies when an issue is sufficiently significant to justify appeal of a non-final order.