2-25-20223
Bankr. W.D.N.Y.Aug 21, 2025Background
- Robert Todd Houle repeatedly filed bankruptcy petitions (personally and through entities he controlled) to stop foreclosure on his property at 1108 Cheese Factory Road, Mendon, NY, without making payments on his mortgage for over 17 years.
- He commenced this most recent case pro se under Chapter 13, failed to file a required plan, and the case was converted to Chapter 7.
- Houle failed multiple times to provide identification or cooperate with the Chapter 7 Trustee for the § 341 meeting of creditors.
- Houle has used bankruptcy filings solely to obtain automatic stays of foreclosure proceedings, transferring the property between himself and controlled entities to continue this pattern.
- The United States Trustee moved to dismiss the case for cause and sought an injunction prohibiting new bankruptcy filings to halt Houle’s abuse of the bankruptcy system.
Issues
| Issue | Houle's Argument | Trustee's Argument | Held |
|---|---|---|---|
| Dismissal for cause under § 707(a) (bad faith use) | Claims pro se status, difficulties complying with procedure | Serial filings in bad faith to delay foreclosure; lack of cooperation | Dismissed for cause; evidence of bad faith and manipulation |
| Duration of injunction against new filings | Sought to minimize duration, stress on pro se status | Requested 1-year bar to stop further abuse | Court imposed a 2-year bar, in rem, extending to property |
| Validity of mortgage assignments (standing/robo-signing) | Asserted assignments were fraudulent/invalid, so mortgage unenforceable | Dismiss as meritless; Houle lacks standing under Second Circuit precedent | Court: Houle lacks standing; claims barred by res judicata |
| Effectiveness of automatic stay on future filings | Sought another stay through future filings or transfers | Sought to bar future stays via in rem order | Court: No automatic stay on property for 2 years without specific court order |
Key Cases Cited
- In re Casse, 198 F.3d 327 (2d Cir. 1999) (authorizes bankruptcy courts to dismiss serial bad faith filings and impose injunctions on future filings)
- Rajamin v. Deutsche Bank Nat'l Trust Co., 757 F.3d 79 (2d Cir. 2014) (no standing for mortgagors to challenge assignments of mortgages)
- Redmond v. Bank of N.Y. Mellon Corp., [citation="697 F. App'x 23"] (2d Cir. 2017) (affirmed mortgagors lack standing to challenge assignments, including claims of forgery)
- Levin v. American Doc. Servs., LLC, [citation="828 F. App'x 788"] (2d Cir. 2020) (assignments are voidable, not void, and unauthorized signatures may be ratified)