Viktoria Benkovitch v. Deutsche Bank National Trust Company

In this case, there is a confirmed Chapter 11 bankruptcy plan, substantially consummated, and later, converted to a Chapter 7. “[T]he provisions of a confirmed plan bind the debtor ... and any creditor ... whether or not such creditor has accepted the plan.” 11 U.S.C. Section 1141(a). The bankruptcy court’s order confirming said plan is a final judgment which has not been appealed, not revoked nor voided, and not vacated. Therefore, this case presents the following questions:

1. Which is worse, that a debtor obtains a real property that she already owns, free of any liens, because a secured creditor failed to timely comply with a bankruptcy court’s final confirmation order; or, when that same bankruptcy court fails to enforce said final order? Subsequently, in the appeal proceedings below, should the courts have enforced the clear and unambiguous terms of a final order, including where the bankruptcy court failed to enforce its own order?

2. What makes a non-appealed and non-vacated bankruptcy court confirmation order - entered after meticulous and compliant attention to due process and proper notice, and which has not been voided - different from any other final order? Does said final judgment also have res judicata effect, precluding it from collateral attack? Is a secured creditor bound by the terms of a confirmed bankruptcy plan where it had notice, and did not