In re Pertuset, No. 12-8014, 2012 Bankr. LEXIS 5792 (B.A.P. 6th Cir. Dec. 18, 2012)

(Chapter 12 bankruptcy debtors who owned a timber business filed numerous pro se documents despite representation by counsel challenging the legitimacy of the creditors’ secured loans; despite numerous pro se filings, debtors failed to file notice of insurance policy on secured property or proposed Chapter 12 plan; court held hearing on confirmation of plan creditors’ motion to dismiss Chapter 12 filing and to impose 2 year moratorium on debtors’ filing chapter 12 action or request for adequate protection of property and debtors’ counsel’s request to withdraw; after hearing, court denied debtors confirmation plan, ordered dismissal of case with two year ban on filing by debtors, allowed withdrawal of counsel, and deemed moot remaining issues; debtors filed motion to reconsider arguing court erred in failing to allow evidence of securitization and standing issues related to creditors; motion was denied and debtors appealed; on appeal, court held that debtors never filed a valid objection to creditors’ claims because pro se filings occurred while represented by counsel and debtors objected to withdrawal of counsel; because courts do not have to give validity to pro se filings when parties represented, the court did not err in failing to set for hearing debtors’ pro se arguments against creditors’ standing; appellate court also held that bankruptcy court did not err in refusing debtors’ evidentiary requests because these were premised on request to proceed as “private attorney general” and debtors acknowledged they had no license to practice law; court also affirmed denial of confirmation plan as inadequate because they failed to include any farming expenses and historical earnings presented at varied times were wildly inconsistent; court also affirmed dismissal of the case with prejudice for a period of two years based on “bad faith”; court affirmed denial of motion to reconsider).

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