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§ 1326

Housley, In re

Ruling
Court entered order providing for adequate protection payments to be made. (Bankr. C.D. Ill.)
Issue(s)
Payments; Plan Payments.

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Consumer opinion summary, case decided on August 02, 2006 , LexisNexis #0418-023

Drive Fin. Servs. v. Brown

Ruling
Plan providing for pre-confirmation adequate protection payments to chapter 13 trustee approved.
Procedural posture

Creditor objected to chapter 13 debtor's plan confirmation.

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opinion summary, case decided on July 24, 2006 , LexisNexis #0107-085

In re Reid

Ruling
Court ruled that plan did not violate section 507(a) but needed to be amended to provide for interest on domestic support obligations.
Procedural posture

Debtor moved for confirmation of his proposed chapter 13 plan. The debtor's plan proposed payment of two debts that qualified as domestic support obligations, as that term was defined in 11 U.S.C. § 101(14A) . The issue was whether the debtor's proposed treatment of these domestic support obligations satisfied the requirements of the Bankruptcy Code, as amended by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA").

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opinion summary, case decided on July 19, 2006 , LexisNexis #0806-118

In re Vinnie

Ruling
Plan was confirmed over creditor's objection since section 1326(b)(1) did not require full payment of creditor's higher priority claim before paying other creditors.
Procedural posture

A state agency in charge of collecting child support on behalf of child support payees (agency) filed three claims for child support. The debtor's chapter 13 plan proposed to pay these claims in full, concurrently with other priority claims, including the debtor's attorney. The agency filed an objection to confirmation, claiming that its priority claims should be paid in full before distribution to any other priority creditor.

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opinion summary, case decided on June 23, 2006 , LexisNexis #0706-122

In re Vigil

Ruling
Court denied plan confirmation due to insufficient information but noted that direct payments would have been permissible.
Procedural posture

A chapter 13 trustee objected to the confirmation of a plan that called for the debtors making payments on two debts secured by personal properly directly to the creditors rather than through the trustee.

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opinion summary, case decided on June 19, 2006 , LexisNexis #0706-082

In re Simmons

Ruling
Plan payments to trustee rather than direct payments, did not deprive creditor of adequate protection.
Procedural posture

Movant creditor filed for relief from the automatic stay. Respondents, debtors and the chapter 13 trustee, opposed the motion.

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opinion summary, case decided on May 31, 2006 , LexisNexis #0906-047

In re Clay

Ruling
Court ruled that Code section 1326(a)(1) still allowed debtors to make direct payments to creditors.
Procedural posture

Under the debtor's proposed chapter 13 plan, the debtor proposed to pay the majority of her secured creditors directly. The chapter 13 trustee objected to confirmation of the plan, arguing that direct payments are not permissible under the Bankruptcy Code.

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opinion summary, case decided on March 15, 2006 , LexisNexis #0406-007

In re Beaver

Ruling
Court held that the debtor was not limited to making preconfirmation direct payments to provide adequate protection to the creditor of a security interest and approved an agreed-on preconfirmation installment payment plan.
Procedural posture

Petitioner creditor filed a motion for preconfirmation adequate protection of its security interests in vehicles owned by one of respondent debtors. The debtors objected that adequate protection could be provided by means other than the direct payments requested.

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opinion summary, case decided on January 24, 2006 , LexisNexis #0206-060

In re Bailey

Ruling
Debtors were entitled to return of funds held by a trustee following dismissal of their unconfirmed chapter 13 case over a creditor's state garnishment claim.
Procedural posture

After the debtors'chapter 13 case was dismissed, but before movant chapter 13 trustee could distribute the accumulated plan payments to the debtors, a creditor served the trustee with a garnishment under Oregon law. The trustee moved for instructions on whether the trustee was required to honor the state law garnishment for the plan payments collected prior to dismissal.

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opinion summary, case decided on September 23, 2005 , LexisNexis #0106-070