In the Matter of John Joseph METZ, Debtor. DOWNEY SAVINGS AND LOAN ASSOCIATION, Appellant, v. John Joseph METZ, Appellee

This appeal is from a decision of the Bankruptcy Appellate Panel affirming the Bankruptcy Court’s confirmation of a debt- or’s chapter 13 plan. Appellant Downey Savings and Loan Association (“Downey”) argues that appellee debtor Metz’s successive filing of chapter 7 and chapter 13 petitions constitutes bad faith. Alternatively, Downey argues that if the chapter 13 plan was not filed in bad faith, the plan is nevertheless deficient because it under-compensates Downey for its secured interest. We reject Downey’s contentions and affirm.

FACTS AND PROCEEDINGS BELOW

In 1984 Metz filed a chapter 7 bankruptcy petition listing both secured and unsecured creditors. The list of debts included Downey’s secured interest in Metz’s home and a series of judgment liens recorded against the property. The chapter 7 proceeding resulted in the total discharge of Metz’s debts. There was no distribution to any creditors. All judgment liens were extinguished. Downey’s interest was reduced to a secured lien against the property. Delinquent property taxes remained due against the value of the property but not as an obligation against Metz.

On the same day Metz received his chapter 7 discharge, he filed…