In Re Elmer FOBIAN and Elsie Fobian, Debtors. Elmer FOBIAN and Elsie Fobian, Appellants, v. WESTERN FARM CREDIT BANK, Appellee

Bad Law
91 Daily Journal DAR 15911·951 F.2d 1149·1991 WL 271383·1991 U.S. App. LEXIS 29818·91 Cal. Daily Op. Serv. 10060
United States Court of Appeals for the Ninth CircuitDecember 24, 199190-16313California1,537 words

Opinion

Opinion

Fletcher, J.

Elmer and Elsie Fobian appeal from the decision of the Bankruptcy Appellate Panel (“BAP”) reversing the bankruptcy court’s confirmation of their chapter 12 plan. They argue that the BAP erred in holding that the plan could not be confirmed because it did not meet the requirements of Section 1225 of the Bankruptcy Code. The Bank argues for affirmance of the BAP’s decision, and asks that we award it attorneys’ fees and costs.

We affirm the BAP’s decision, but award the Bank only costs on appeal.

BACKGROUND

The Fobians are solvent Chapter 12 debtors. They are current on all obligations except a loan from the Bank. The Bank holds a promissory note secured by 70.5 acres of land located in Glenn County, California and stock in the Federal Land Bank Association of Northern California. After the Fobians filed their Chapter 12 petition, the Bank filed a Proof of Claim for $191,-660.09. The Proof of Claim stated: “No security interest is held for this claim except Deed of Trust. Stock in FLBA of Northern California perfected pursuant to the Farm Credit Act of 1971.” The Fobi-ans made no objections to this Proof of Claim.

While the Fobians filed three plans, only the “First Amended Plan…

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