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§ 1325(a)(3)

In re James

Ruling
Plan payments reflecting Form 22C calculation but less than actual disposable income allowed.
Procedural posture

The debtors filed an amended chapter 13 plan, and the chapter 13 trustee filed an objection to confirmation of the plan. The trustee argued that, because the plan filed by the debtors showed excess funds on schedule J of $1,986 available to pay unsecured creditors, but proposed plan payments of only $725, the plan was not filed in good faith as required by 11 U.S.C. § 1325(a)(3).

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Consumer opinion summary, case decided on November 30, 2007 , LexisNexis #1207-125

In re Chavez

Ruling
Confirmation denied due to failure of plan to account for inheritance, debt counseling refund, or portions of IRA.
Procedural posture

Debtors filed a petition under chapter 13, and an amended plan for paying their creditors. A trustee was appointed to represent the bankruptcy estate, and he filed an objection to the debtors' plan. During a hearing on the debtors' plan, the debtors amended the plan to increase the amount they proposed to pay their creditors each month.

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Consumer opinion summary, case decided on October 11, 2007 , LexisNexis #1207-023

In re Sadler

Ruling
Confirmation denied due to failure to provide evidence for vehicle operation expense and excessive 10% deduction of plan payments.
Procedural posture

A chapter 13 trustee objected to the confirmation of debtors'plan on the grounds that were not applying all of their projected disposable income to make payments to unsecured creditors as required by 11 U.S.C. § 1325(b) and that the plan was not proposed in good faith in violation of 11 U.S.C. § 1325(a)(3).

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Consumer opinion summary, case decided on October 09, 2007 , LexisNexis #1107-089

In re Squires

Ruling
Debt owed to Department of Veterans Affairs was nondischargeable due to debtor's misrepresentation of spouse's income in application for pension benefits.
Procedural posture

A chapter 13 trustee and the United States Department of Veterans Affairs objected to the confirmation of a debtor's chapter 13 plan, pursuant to 11 U.S.C. § 1325(a)(3).

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opinion summary, case decided on May 07, 2007 , LexisNexis #0707-069

Sassower v. Alito (In re Sassower)

Ruling
Adversary proceeding and bankruptcy case dismissed on grounds of debtor's bad faith.
Procedural posture

A chapter 13 trustee filed a motion to dismiss debtor's adversary proceeding against defendants, the government officials and other entities, and to dismiss the bankruptcy case.

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opinion summary, case decided on May 03, 2007 , LexisNexis #0607-069

In re McNeeley

Ruling
Plan proposing retention of houseboat in which there was no equity while paying unsecured creditors less than eight percent of total claims was not proposed in good faith.
Procedural posture

Creditor sought relief from the automatic stay pursuant to 11 U.S.C. § 362(d)(2). Creditor and trustee objected to confirmation of chapter 13 debtors'proposed plan.

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opinion summary, case decided on April 09, 2007 , LexisNexis #0607-102

Alexander v. Hardeman

Ruling
Bankruptcy court did not err in denying confirmation and dismissing case for bad faith due to debtor's failure to list all assets.
Procedural posture

Chapter 13 debtor appealed a decision of the Bankruptcy Court for the Western District of Oklahoma, which denied confirmation of debtor's plan under 11 U.S.C. § 1325(a)(3) and dismissed the case under 11 U.S.C. § 1307(c).

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on March 13, 2007 , LexisNexis #0407-105

In re Lewis

Ruling
Plan was not confirmed since debtors did not propose it in good faith where only personal benefit for debtors was to secure van for their adult daughter.
Procedural posture

Debtors proposed a chapter 13 plan under which they would have paid the creditor the value of a van they purchased for their daughter as determined by 11 U.S.C. § 506(a), with the balance of the loan treated as a general unsecured claim. The creditor objected to the plan, arguing that the debtors had to pay the full amount of the debt. The creditor filed a motion for stay relief.

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opinion summary, case decided on August 03, 2006 , LexisNexis #0806-115

In re Champion-Lee

Ruling
Court granted debtor's motion to convert case over trustee's claim of debtor bad faith since it appeared debtor could propose confirmable plan and conversion was in best interests of creditors.
Procedural posture

Petitioner debtor filed a motion to convert his chapter 7 case to a chapter 13 case. Respondent chapter 7 trustee objected to the conversion, asserting that the debtor's motion to convert and chapter 13 plan were not proposed in good faith under 11 U.S.C. § 1325(a)(3).

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opinion summary, case decided on April 04, 2006 , LexisNexis #0606-133

Baxter v. Lewis (In re Lewis)

Ruling
Motion to dismiss the debtors'chapter 13 cases was denied since debtors qualified for plan confirmation and their inability to receive a discharge of their cases under section 1328(f)(1) did not establish a bad faith filing.
Procedural posture

Movant trustee sought dismissal of the petitions filed by respondent debtors, under chapter 13, based solely on 11 U.S.C. § 1328(f). The trustees contended that because the debtors were not eligible to receive a discharge upon the completion of any confirmed plan, the debtors were ineligible for chapter 13 relief.

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opinion summary, case decided on March 27, 2006 , LexisNexis #0406-077