Ernest Green
16-04137
Bankr. N.D. Ala.Dec 18, 2017Background
- Green filed Chapter 13 on Oct 7, 2016 with a mortgage to Wells Fargo; plan provided direct payment to Wells Fargo and Trustee-disbursed arrears.
- Wells Fargo filed a claim for $58,627.69 with $23,538.43 past due; the claim attached the 1998 Note and Mortgage showing Wells Fargo’s rights.
- The 1998 note and mortgage were originally to First Union Home Equity Bank, N.A., later transferred through indorsements to Wells Fargo and secured by Green’s home.
- A settlement at the Aug 23, 2017 hearing reduced the past-due amount Wells Fargo showed to $14,167.99 if Green paid the case in full and received a discharge; 60-month term began immediately upon confirmation.
- The Confirmation Order (Sept 12, 2017) required monthly payments of $282 for 60 months; Green subsequently failed to make payments and contested Wells Fargo’s ownership and alleged fraud.
- A show-cause hearing on Dec 14, 2017 found Green had not made payments since Aug 2017 and the court dismissed the case with a 180-day filing ban.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Green’s Motion to Modify should be granted | Green seeks modification and to challenge the claim | Wells Fargo argues the settlement is enforceable and the claim valid | Motion denied; case dismissed; 180-day bar |
| Whether Wells Fargo’s Proof of Claim is valid and enforceable | Claim is not proven; disputing ownership of note/mortgage | Claim and attached documents show Wells Fargo owns/has rights | Claim deemed valid; proof of claim enforceable |
| Whether Green violated the plan and payment obligations warrant dismissal | Nonpayment due to dispute over ownership; fees owed | Debtor failed to comply with confirmed plan | Dismissal upheld; debtor barred from refiling for 180 days |
| Whether the settlement agreement terms are enforceable given alleged fraud | Agreement denied or fraudulent | Terms were negotiated and consented to in open court | Enforceable; agreement to pay reduced arrears stands |
Key Cases Cited
- United States v. Swift & Co., 286 U.S. 106 (U.S. 1932) (supports enforcement of consent orders and settlements embedded in litigation)