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In re Plascencia

In re Plascencia

Ruling
Chapter 13 plan could not be confirmed where unsecured creditors would receive more in chapter 7 regardless of valuation of home purchased from Habitiat for Humanity.
Procedural posture

The chapter 13 trustee filed objections to debtor's confirmation, arguing that her residential property purchased from a branch of Habitat for Humanity should be valued at its fair market value and not the substantially lower value at which Habitat could repurchase it, and that the proposed plan does not pay creditors at least as much as they would receive in a chapter 7 liquidation, as required under 11 U.S.C. § 1325.

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opinion summary, case decided on November 08, 2006 , LexisNexis #1206-078