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IN RE FRIEDMAN

BAP Nos. AZ-11-1105-JuKiCl, AZ-11-1149-JuKiCl. Bankruptcy No. 07-02135.

466 B.R. 471 (2012)

In re Gregory A. FRIEDMAN and Judith Mercer-Friedman, Debtors. Gregory A. Friedman; Judith Mercer-Friedman, Appellants, v. P + P, LLC, Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided March 19, 2012.

Attorney(s) appearing for the Case

Scott D. Gibson, Esq. , of Gibson, Nakamura & Green, PLLC, argued for appellants Gregory A. Friedman and Judith Mercer-Friedman. Daniel Mark Press, Esq. , argued for National Association of Consumer Bankruptcy Attorneys, as amicus curiae, by special leave of the Panel, supporting the appellants' position.

Before: JURY, KIRSCHER, and CLARKSON, Bankruptcy Judges.

OPINION

CLARKSON, Bankruptcy Judge.

Chapter 11 debtors, Gregory Friedman ("Gregory") and Judith Mercer-Friedman ("Judith") (collectively, the "Friedmans" or "Debtors"), appeal the bankruptcy court's orders denying confirmation of their second amended plan (BAP No. 11-1105) and converting their case to chapter 7 (BAP No. 11-1149).

These consolidated appeals raise the issue whether the absolute priority...

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