Bank of Commerce & Trust Co. v. Schupbach (In re Schupbach)
May 19, 2015OUTCOME: BAP Affirmed--Appeal dismissed as moot
Creditor sought to hold debt non-dischargeable. Bankruptcy court held for debtors after trial. Creditor appealed. During appeal, Debtors filed chapter 11 plan providing that claim, dischargeable or ... not, would be paid in full through the surrender of collateral. The Plan was confirmed and the Debtors filed a motion to dismiss the appeal as moot. The BAP granted the motion. On appeal by the creditor to the 10th Circuit Court of Appeals, the court held that the confirmation of the plan was binding as to the treatment of the claim. Because the claim had been paid in full, the dischargeability of the claim became irrelevant and the dismissal on mootness grounds was affirmed. 2015 U.S. App. LEXIS 8192, *1, 607 Fed. Appx. 831 (10th Cir. 2015)
