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§ 1225(a)

In re Brixey

Ruling
Confirmation denied for failure to provide for distribution to unsecured creditors where proper valuation of real estate would allow for such a distribution.
Procedural posture

A creditor objected to confirmation of a chapter 12 debtor's plan on the grounds that by failing to provide for a distribution to unsecured creditors, the plan failed to satisfy the good faith requirement of 11 U.S.C.S. § 1225(a)(3) and the liquidation test of § 1225(a)(4).

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Consumer opinion summary, case decided on January 15, 2010 , LexisNexis #0310-132

In re Tamcke

Ruling
Plan confirmation denied on feasibility grounds due to prior failures to sell property.
Procedural posture

A bankruptcy debtor proposed a chapter 12 bankruptcy plan which provided for the sale of a portion of the debtor's ranch property and, if the property was not sold by a date certain, to sell the property and additional property at auction. The former spouse of the debtor and a bank which was the debtor's primary creditor objected to confirmation of the debtor's plan.

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Consumer opinion summary, case decided on January 14, 2010 , LexisNexis #0310-053

In re Vantage.com

Ruling
Organic vegetable grower's case ordered converted to chapter 7 on grounds of bad faith.
Procedural posture

A debtor petitioned for relief under chapter 12 and submitted a plan of reorganization. Three creditors objected to the plan, and one of the creditors filed a motion for dismissal, conversion, or removal of the debtor as a debtor in possession.

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Commercial opinion summary, case decided on September 13, 2007 , LexisNexis #1007-090

In re Wilson

Ruling
Confirmation denied due to farmer debtor's failure to provide creditor trust with interest at prime rate plus risk factor.
Procedural posture

Two cases were filed, one by two individual debtors and one by an LLC. Pending in the jointly administered chapter 12 bankruptcy cases were confirmation of debtors'chapter 12 Plans and objections thereto filed by two creditors, namely a revocable trust and a second creditor. Also pending was debtors' motion for valuation of the second creditor's security. The trust also sought dismissal. A separate Order addressed its judicial notice request.

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opinion summary, case decided on February 07, 2007 , LexisNexis #0307-031

In re Torline

Ruling
Plan confirmation denied due to failure to provide for payment of former spouse's secured claim.
Procedural posture

Creditor, chapter 12 debtor's ex-wife, filed an objection to the confirmation of debtor's plan.

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opinion summary, case decided on December 22, 2006 , LexisNexis #0207-033

In re Sandhills Cattle Feeding Inc.

Ruling
Plan not filed in bad faith where cattle died from disease rather than being converted for debtors'benefit as alleged.
Procedural posture

Debtors filed for chapter 12 bankruptcy relief. The debtors then filed a chapter 12 plan. A creditor objected to confirmation pursuant to 11 U.S.C. § 1225(a)(3), alleging that the debtors had converted 385 head of the creditor's cattle. The court held a trial on the objection.

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opinion summary, case decided on October 06, 2006 , LexisNexis #1106-132

In re Torelli

Ruling
Court denied confirmation of the debtor's chapter 12 plan because it did not propose to pay a bank the present value of the bank's fully secured claim and because the plan was not feasible.
Procedural posture

Debtor filed for bankruptcy protection under chapter 12 and sought confirmation of a chapter 12 plan. Objector secured creditor objected to confirmation of the proposed plan. The court held a confirmation hearing.

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opinion summary, case decided on February 28, 2006 , LexisNexis #0306-066