Carolyn Davis v. U.S. Bank

Debtor Carolyn L. Davis appeals from a decision of the Bankruptcy Appellate Panel (“BAP”) affirming an order of the bankruptcy court that dismissed her voluntary petition under chapter 12 of the Bankruptcy Code. The bankruptcy court dismissed Davis’ petition because her “aggregate debts” exceeded $3,792,650, the statutory limitation for chapter 12 eligibility in effect at the time that Davis filed her petition. See 11 U.S.C. § 101 (18)(A) (2010). The BAP affirmed, concluding that Davis’ “aggregate debts” included her liabilities for the unsecured portions of her creditors’ claims, even though those liabilities had been discharged in an earlier chapter 7 proceeding. Davis v. Bank of Am., N.A. (In re Davis), No. CC-11-1692-MkDKi, 2012 WL 3205431 (B.A.P. 9th Cir.2012) (unpublished). We agree and, therefore, affirm the dismissal of Davis’ petition because she is statutorily ineligible to be a chapter 12 debtor.

Davis owns parcels of real property in California, three of which are relevant to this appeal. According to the schedules that she attached to her chapter 12 petition, Davis owns a 110-acre ranch in Paso Robles, a residence in Cayucos, and a triplex in Paso Robles.…