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§ 1325(a)(3)

In re Delp

Ruling
Confirmation of amended plan denied due to unwarranted deduction in proposed payments.
Procedural posture

The debtors filed a chapter 13 petition. After the debtors filed their first and second amended plans, the trustee objected pursuant to 11 U.S.C.S. § 1325(a)(3) on the grounds that the debtors reduced their plan payments by $ 472 per month without providing any supporting documentation or explanation. The bankruptcy court held a hearing on the trustee's objection.

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Consumer opinion summary, case decided on February 09, 2009 , LexisNexis #0309-131

In re Hutchins

Ruling
Plan confirmed over objection of creditor whose failure to be properly secured was not due to bad faith on part of debtor.
Procedural posture

The debtor filed a third amended chapter 13 plan which treated a bank's claim as unsecured. The bank objected to confirmation, asserting that it should have been deemed to have a perfected security interest in a dump truck that it had refinanced for the debtor.

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Consumer opinion summary, case decided on January 30, 2009 , LexisNexis #0309-132

In re Kim

Ruling
Confirmation denied for bad faith due to lack of changed circumstances since debtor's prior case was dismissed for inability to propose plan.
Procedural posture

Debtors proposed a chapter 13 plan which provided only a minimal dividend to unsecured creditors. The bankruptcy trustee objected to confirmation of the plan based on lack of feasibility, failure to satisfy the best interests of creditors, and lack of good faith.

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Consumer opinion summary, case decided on January 14, 2009 , LexisNexis #0609-094

In re Vantiger-Witte

Ruling
Chapter 13 plan confirmation denied in case converted from chapter 12 where debtor intended to dispose of farming operation by paying least possible amount to creditors.
Procedural posture

A debtor filed for relief under chapter 13 of the Bankruptcy Code and submitted a proposed plan. The Farm Service Agency (FSA), a creditor, objected to confirmation of the plan, claiming that the debtor had failed to account for cattle and other property that were collateral for the FSA's loans.

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Consumer opinion summary, case decided on September 29, 2008 , LexisNexis #1208-034

In re Montry

Ruling
Plan confirmation denied for lack of good faith where filed solely to provide for payment of postpetition attorneys'fees from estate.
Procedural posture

Bankruptcy debtors proposed a chapter 13 plan which provided for payment to the debtor's attorney over time and provided for no payment to prepetition creditors. The bankruptcy trustee moved for denial of confirmation of the debtors'plan based on a lack of good faith as required by 11 U.S.C.S. § 1325(a)(3).

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Consumer opinion summary, case decided on September 11, 2008 , LexisNexis #1008-087

In re Shafer

Ruling
Case dismissed where debtors maintained high expenses in bad faith to limit creditors' recovery.
Procedural posture

Creditors of chapter 13 debtors and the trustee objected to the debtors' plan on the grounds that it was not filed in good faith, as required by 11 U.S.C.S. § 1325(a)(3).

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Consumer opinion summary, case decided on June 09, 2008 , LexisNexis #1008-049

In re Casavalencia

Ruling
Case dismissed as filed for improper purpose to evade responsibility for securities fraud scheme and debtor's attorney sanctioned for filing without reasonable inquiry.
Procedural posture

Four creditors of the debtor moved to dismiss his case as a bad faith chapter 13 filing, for relief from the automatic stay so that they may continue with prepetition litigation against the debtor, and for the award of attorneys' fees and costs.

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Consumer opinion summary, case decided on June 05, 2008 , LexisNexis #0708-055

In re Robinson

Ruling
Refiling case to qualify for favorable treatment under hanging paragraph was not grounds for bad faith dismissal.
Procedural posture

The matter was before the court on a creditor's objection to confirmation of debtor's chapter 13 plan. The creditor claimed the plan had not been proposed in good faith and thus could not be confirmed pursuant to 11 U.S.C.S. § 1325(a)(3).

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Consumer opinion summary, case decided on May 16, 2008 , LexisNexis #0708-021

In re Owsley

Ruling
Plan confirmation denied without prejudice due to failure to establish good faith.
Procedural posture

A creditor of above-median-income chapter 13 debtors objected to the confirmation of the debtors' plan, alleging that they understated their disposable income and that the plan had been filed in bad faith, in violation of 11 U.S.C.S. § 1325(a)(3).

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Consumer opinion summary, case decided on March 31, 2008 , LexisNexis #0408-090

In re Abbas

Ruling
Chapter 13 plan not filed in good faith as funded by sale of property not scheduled in prior chapter 7 case.
Procedural posture

A creditor of a chapter 13 debtor objected to the confirmation of the debtor's plan and moved for relief from the automatic stay and co-debtor stay.

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Consumer opinion summary, case decided on December 20, 2007 , LexisNexis #0208-017