Martindale

MEMORANDUM **

Sharyn Kae Meenderinck (“Meenderinck”), the debtor, was involved in a fraudulent securities scheme through Resource Development International (“RDI”) in which investors were told that they were trading European financial instruments when in fact they were investing in a Ponzi scheme. She was sued by the court-appointed receiver in a related securities fraud case, resulting in a judgment against Meenderinck for more than $200,000. A group of 21 individual investors in the RDI investment scheme, nine of whom are appellants here, then brought a separate ac *914 tion against Meenderinck seeking to recover their lost assets.

Meenderinck filed for Chapter 13 bankruptcy shortly thereafter. On her bankruptcy schedule, she listed the $200,000 receiver’s judgment, but did not include the pending suit by the individual investors. By this omission, which she says was accidental, she fell below the unsecured debt limit for Chapter 13 bankruptcy. At the time, this limit was $307,675. 11 U.S.C. § 109 (e) (2000). Appellants do not challenge Meenderinek’s good faith.

The bankruptcy court confirmed Meenderinck’s Chapter 13 bankruptcy plan. The Ninth Circuit Bankruptcy Appellate…