Taal v. SumskiTaal v. Sumski
Baboucar B. Taal (the “Debtor”) appeals pro se from the order dismissing his chap
BACKGROUND
On May 13, 2013, the Debtor filed a chapter 13 bankruptcy petition. With the petition, the Debtor also filed a certificate indicating that he had received an individual [or group] briefing that complied with the provisions required by §§ 109(h)(1) and 111. The certificate, however, reflected that the Debtor received the credit counseling 259 days prior to the petition date. Although § 109(h)(1) requires the credit counseling course to be taken within 180 days preceding the petition date (subject to certain exceptions to be discussed below), the Debtor did not refer to any exigent circumstances excusing his failure to obtain the credit counseling during the required time frame. Rather, he incorrectly (or falsely) represented that he had obtained the counseling within 180 days of filing his petition.
On May 23, 2013, the chapter 13 trustee moved to dismiss the case (the “Dismissal Motion”) on the grounds that the Debtor was ineligible to be a debtor because he failed to complete credit counseling within 180 days preceding the petition date, as required by § 109(h)(1). The Debtor objected, relying solely on the fact that, by that time, he had received further credit counseling as evidenced by the second credit counseling certificate. He subsequently amended his objection, arguing that: (1) he was exempt from § 109(h)(l)’s temporal requirement under § 109(h)(3)(B);
At the hearing on the Dismissal Motion, the Debtor expanded on his exemption argument. He maintained that the exigent circumstances exception described in § 109(h)(3)(A) applied because he: “[(1)] had to pay a filing fee in another court, during that same time period, and [(2)] did not have funds available to pay for a credit counseling course.” In its Order Granting Motion to Dismiss Case, the bankruptcy court principally addressed and rejected the Debtor’s exigent circumstances argument, dismissing the case on account of the Debtor’s failure to satisfy the requirements of § 109(h)(1). This appeal followed.
A bankruptcy appellate panel is “duty-bound” to determine its jurisdiction before proceeding to the merits, even if the litigants have not raised the issue. See Boylan v. George E. Bumpus, Jr. Constr. Co. (In re George E. Bumpus, Jr. Constr. Co.),
On review, we will not disturb the bankruptcy court’s factual findings unless they are clearly erroneous, while conclusions of law are reviewed de novo. See Lessard v. Wilton-Lyndeborough Coop. Sch. Dist.,
DISCUSSION
The bankruptcy court dismissed the Debtor’s case because he failed to obtain credit counseling within the statutory time period. On appeal, the Debtor argues that he did obtain credit counseling within the statutory time period.
Section 109(h)(1) sets out the credit counseling requirement; it provides that:
an individual may not be a debtor under this title unless such individual has, during the 180-day period ending on the date of filing of the petition by such individual, received from an approved nonprofit budget and credit counseling agency ... an individual or group briefing (including a briefing conducted by telephone or on the Internet) that outlined the opportunities for available credit counseling and assisted such individual in performing a related budget analysis.
11 U.S.C. § 109(h)(1) (emphasis added).
Regardless of the efficacy of this requirement to its congressional purpose,
But there are three exceptions to the § 109(h)(1) credit counseling requirement. First, a debtor is not required to file a credit counseling certificate if there are no approved credit counseling agencies available. 11 U.S.C. § 109(h)(2)(A). Second, the credit counseling requirement may be waived by the court if the debtor is unable to complete the requirement owing to the debtor’s “incapacity, disability, or active military duty in a military combat zone.” 11 U.S.C. § 109(h)(4). Neither of these exceptions apply here, and neither was argued below.
The third exception to the credit counseling requirement is set forth in § 109(h)(3) (the “exigent circumstances” exception). Pursuant to that subsection, a debtor may obtain a temporary deferral of the requirement to file a credit counseling certificate (up to 45 days), if the debtor:
... submits to the court a certification that—
(i) describes exigent circumstances that merit a waiver of the [credit counseling requirement];
(ii) states that the debtor requested credit counseling services from an approved nonprofit budget and credit counseling agency, but was unable to obtain the services ... during the 7-day period beginning on the date on which the debtor made that request; and
(iii) is satisfactory to the court.
11 U.S.C. § 109(h)(3)(A). To qualify for the exigent circumstances exception, a debtor must satisfy all three elements. In re Fiorillo,
In connection with the Debtor’s exigent circumstances argument,
The Debtor has also argued that he did not have the funds to pay for the credit counseling course. Assuming the truth of that unsupported statement, and even assuming (without deciding) that an inability to afford the cost of credit counseling could constitute an “exigent circumstance” under § 109(h)(8)(A)(i), the Debtor nowhere indicated that he had requested, and been unable to receive, credit counseling services within 7 days of his request.
CONCLUSION
Having found no error, we cannot disturb the bankruptcy court’s findings — or its conclusion — that the Debtor did not meet the credit counseling requirement under § 109(h)(1). The record reflects that the bankruptcy court duly applied the incontrovertible facts to the applicable statute and determined dismissal was warranted. Neither the Debtor, nor the record, demonstrates that the court abused its discretion. . Having found no reason for doing otherwise, we AFFIRM.
Notes
. Unless expressly stated otherwise, all references to specific statutory sections shall be to the Bankruptcy Reform Act of 1978, as amended, 11 U.S.C. § 101, et seq.
. Exhibit D to Official Form 1 (the petition) must be filed by an individual debtor. See Fed. R. Bankr.P. 9009, Official Form 1 Ex. D. Exhibit D requires the debtor to indicate whether he or she received the credit counseling course within 180 days prior to the petition date, whether the debtor requested credit counseling services and was unable to timely receive those services and exigent circumstances exist to merit a temporary waiver of the credit counseling requirement, or whether the debtor is not required to receive credit counseling due to incapacity, disability, or active military duty. The debtor must sign the statement regarding compliance with the credit counseling requirement under the pains and penalties of perjury.
.While § 109(h)(3)(A) allows a waiver of the 180-day requirement under certain exigent circumstances, subsection (B) (cited by the Debtor) explains that the exigent circumstances exception is only temporary, requiring a debtor to file a credit counseling certificate, at the very latest, within 45 days following the petition date.
. The Debtor also raises a new argument on appeal, contending that his due process rights were violated. It is well settled that arguments not raised in the bankruptcy court cannot be raised for the first time on appeal. See Khan v. Bankowski (In re Khan),
. See, e.g., Yvana L.B.H. Mols, Bankruptcy Stigma and Vulnerability: Questioning Autonomy and Structuring Resilience, 29 Emory Bankr. Dev. J. 289 (2012); Jeffrey D. Eaton, Locked Out: The Unwary Debtor and BAPC-PA's Pre-File Credit Counseling Requirement, 32 T. Jefferson L. Rev. 261 (Spring 2010); Andrew P. MacArthur, Pay to Play: The Poor's Problems in the BAPCPA, 25 Emory Bankr. Dev. J. 407 (2009); Robert M. Lawless, Angela K. Littwin, Katherine M. Porter, John A.E. Pottow, Deborah K. Thorne & Elizabeth Warren, Did Bankruptcy Reform Fail? An Empirical Study of Consumer Debtors, 82 Am. Bankr. L.J. 349 (Summer 2008); U.S. Gen. Accounting Office, Bankruptcy Reform: Value of Credit Counseling Requirement is Not Clear (2007), available at <http://www.gao.gOv/new.items/d 07203.pdf> (last visited Jan. 24, 2014); Michael Newman, BAPCPA’s New Section 109(h) Credit Counseling Requirement: Is it Having the Effect Congress Intended?, 2007 Utah L. Rev. 489 (2007); Nathalie Martin & Ocean
. The record reflects that the Debtor did not submit a written certification with respect to his request for an exigent circumstances exception. Rather, he argued as to the existence of exigent circumstances at the hearing on the Dismissal Motion. By this decision, we need not address what form the certification should take. Compare In re Kernan,
. We take judicial notice that, where a debtor so qualifies, approved credit counseling agencies must waive their fee. See 28 C.F.R. § 58.21.
. Because we have determined that the bankruptcy court did not abuse its discretion in dismissing the Debtor’s case, we need not address the question of whether failure to satisfy the credit counseling requirement requires dismissal or whether dismissal is within the court’s discretion. Compare e.g., In re Diaz, No. 13-02932,