The Debtor and his spouse, Dawn, are defendants in an action to foreclose real property ) pending before the Circuit Court of Orange County, Florida (the “Foreclosure Action”). Ocwen Loan Servicing, LLC services the loan for the plaintiff, Bank of America, N.A. (collectively the “Creditor”) in the Foreclosure Action.
The Circuit Court entered a judgment for almost $600,000 in favor of the Creditor in the
Foreclosure Action (the “Foreclosure Judgment”). The Foreclosure Judgment directed that the
clerk of court sell the Property on April 11, 2013 (the “First Sale Date”) unless the amounts stated in the judgment were paid.
One day prior to the First Sale Date, the Debtor filed a Chapter 7 bankruptcy case (the
“First Case”). The Debtor filed the First Case without counsel and represented himself,
pro se. The Debtor failed to file the required bankruptcy schedules and this
Court dismissed the First Case approximately a month later. Over a year after this Court dismissed the First Case, the Circuit Court entered an order rescheduling the sale of the Property to January 5, 2015 (the “Second Sale Date”).
Prior to the Second Sale Date, Dawn filed a Chapter 7 bankruptcy case (“Dawn’s Case”).
Dawn filed her case without counsel and represented herself, pro se. Dawn complied with the
applicable provisions of the Bankruptcy Code andabout five months after Dawn filed her case,
the bankruptcy court entered a discharge. The Creditor did not request stay relief to proceed with the foreclosure of the Property. Shortly after entry of the discharge, the Circuit Court entered an order rescheduling the sale of the Property to September 21, 2015 (the “Third Sale Date”).
By the Motion to Dismiss, the Creditor contends that the Current Case should be dismissed with sanctions because the Debtor filed the Current Case in bad faith, and the Debtor caused an
unreasonable delay prejudicing the Creditor by filing multiple bankruptcy cases and appeals.
The Court held a trial on the Motion to Dismiss. The Debtor stated that he filed the Current
Case to save his home- the Property. The Debtor asserted that he has several claims against the
Creditor and recently initiated an adversary proceeding in this case to pursue those claims (the
“Pending Adversary Proceeding”). The Debtor clarified that his Chapter 13 plan proposes to pay
the Foreclosure Judgment, less any relief awarded the Debtor in the Pending Adversary
Proceeding. The Debtor stated that he is current on his Chapter 13 plan payments and the Chapter 13 plan proposes monthly $500 payments to the Cr editor as adequate protection. The Debtor wanted to retain an attorney to assist him with the Current Case and believed that his current income is stable and sufficient to obtain counsel and fund a plan.