Ricky Dale Graham filed a Chapter 13 bankruptcy case in August 2022, which was initially confirmed. However, the Chapter 13 Trustee later initiated an adversary proceeding alleging Graham failed to disclose assets and prepetition transfers to his fiancée. The parties resolved this dispute by entering an Agreed Judgment, which the bankruptcy court approved in November 2023. This judgment revoked the original plan confirmation, required Graham to amend his schedules to disclose omitted assets, and strictly prohibited him from transferring assets to his fiancée or conducting business with her. The judgment explicitly stated that failure to comply would result in dismissal with prejudice and a permanent bar to discharging prepetition debts. Although Graham initially filed amended schedules and made payments, the Trustee later moved to dismiss the case in November 2024, alleging Graham violated the Agreed Judgment. After a brief reinstatement and an evidentiary hearing in March 2025, the bankruptcy court dismissed Graham's case with prejudice. Graham appealed this final order to the Bankruptcy Appellate Panel.
The Bankruptcy Appellate Panel addressed four issues raised by Graham. First, the court confirmed it had jurisdiction over the appeal of the final dismissal order. Second, regarding the validity of the Agreed Judgment, the court found that Graham could not challenge the judgment on appeal because he failed to file a timely notice of appeal from that specific order. Furthermore, Graham waived any arguments regarding duress or incapacity by failing to raise them in the bankruptcy court prior to the hearing. Third, the court rejected Graham's claim that he was denied due process or a continuance. The record showed Graham voluntarily withdrew his requests for a continuance at the hearing, thereby waiving the objection. Additionally, the court found the bankruptcy judge acted within inherent authority to manage the docket and that Graham had adequate notice and time to prepare. Finally, the court addressed whether the bankruptcy judge committed misconduct or abused discretion in dismissing the case. The appellate court deferred to the bankruptcy judge's firsthand assessment of witness credibility. The court also found that any error in striking hearsay testimony was harmless because the excluded evidence would not have changed the outcome. Graham failed to provide specific arguments challenging his actual violation of the Agreed Judgment, leading the court to conclude he waived those arguments as well.
The decision affirms the dismissal of Graham's Chapter 13 case with prejudice, permanently barring him from discharging debts incurred prior to his August 2022 filing. It reinforces the binding nature of Agreed Judgments in bankruptcy adversary proceedings, establishing that debtors who sign such settlements without reserving appeal rights cannot later challenge the validity of the agreement on appeal. The ruling also clarifies that procedural arguments regarding continuances and evidence must be raised at the trial level or they are waived, and that appellate courts will defer to bankruptcy judges on credibility determinations.