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§ 1325(a)(3)

In re Martellini

Ruling
Reaffirmation denied for lack of good faith where debtor's family would pay for retained luxury items while debtor paid less than 30 percent of unsecured debt.
Procedural posture

This matter came before the court for confirmation of debtor's chapter 13 plan. The chapter 13 Trustee objected to confirmation. The court held a hearing regarding confirmation of the proposed plan.

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Consumer opinion summary, case decided on November 14, 2012 , LexisNexis #1212-067

In re McMahan

Ruling
Chapter 13 case dismissed for bad faith as filed on eve of foreclosure sale after default under chapter 11 plan instead of seeking modification of chapter 11 plan.
Procedural posture

Debtor filed a petition under chapter 13 of the Bankruptcy Code, and a bank that held a debt that was secured by real property the debtor owned filed a motion to dismiss the debtor's case for serial filing, arguing that the debtor's case was not filed in good faith under 11 U.S.C.S. §§ 1307 and 1325(a)(3).

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Consumer opinion summary, case decided on October 25, 2012 , LexisNexis #1112-134

In re Johnson

Ruling
Confirmation denied due to mischaracterization and deficiencies.
Procedural posture

Mortgage creditor filed an objection to chapter 13 debtors' proposed plan, which sought to classify the creditor's claim as unsecured, on the theory that the parties had entered into a contract for deed rather than a secured mortgage. The creditor asserted that debtors had failed to pay taxes on the real property for a number of years.

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Consumer opinion summary, case decided on October 10, 2012 , LexisNexis #1112-031

In re Weltlich

Ruling
Plan confirmed due to modifications that overcame court's concerns over good faith.
Procedural posture

This case came before the court for a further hearing on confirmation of debtor's pending proposed amended chapter 13 plan. A creditor, debtor's former spouse, filed an objection to confirmation.

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Consumer opinion summary, case decided on August 31, 2012 , LexisNexis #1012-099

In re Cooper

Ruling
Confirmation denied as student loan debt was treated unfairly.
Procedural posture

A below-median income debtor who was not eligible to declare chapter 7 bankruptcy filed a petition under chapter 13 of the Bankruptcy Code and proposed a plan that did not pay anything to unsecured creditors. A hospital that was owed $24,760 filed an objection to confirmation of the debtor's plan but negotiated a settlement with the debtor, and the debtor asked the court to approve the settlement and to confirm her amended plan.

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Consumer opinion summary, case decided on August 31, 2012 , LexisNexis #0213-100

In re Evans

Ruling
Plan that evidenced a sincere effort at repayment confirmed over objection of former spouse's estate.
Procedural posture

The estate of a debtor's former spouse filed an objection to the confirmation of the debtor's chapter 13 plan.

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Consumer opinion summary, case decided on July 10, 2012 , LexisNexis #0812-031

Meyer v. Lepe (In re Lepe)

Ruling
Confirmation of plan which stripped lien while paying only percentage of unsecured claims was proper based on totality of circumstances.
Procedural posture

Chapter 13 Trustee challenged the order of the U.S. Bankruptcy Court for the Eastern District of California confirming appellee debtor's amended plan.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on May 09, 2012 , LexisNexis #0612-103

In re Osborn

Ruling
Confirmation denied due to failure to properly accommodate nondischargeable priority domestic support obligation.
Procedural posture

A creditor, the former spouse of a chapter 13 debtor, objected to confirmation of his plan, asserting that her claim was a priority unsecured domestic support obligation under 11 U.S.C.S. § 507(a)(1)(A). She also contended that the plan was not filed in good faith under 11 U.S.C.S. § 1325(a)(3). The debtor objected to the classification of the claim as a domestic support obligation.

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Consumer opinion summary, case decided on January 26, 2012 , LexisNexis #0212-097

In re Lawhorn

Ruling
Chapter 13 plan proposing to pay creditors more than they would have received in a chapter 7 case was filed in good faith despite exemption claim in entireties property.
Procedural posture

Creditors objected to the confirmation of a debtor's chapter 13 plan on the ground that he did not filed his plan in good faith under 11 U.S.C.S. § 1325(a)(3).

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Consumer opinion summary, case decided on January 13, 2012 , LexisNexis #0612-104

In re Brown

Ruling
Plan modification to allow surrender of motor vehicle with blown engine denied for lack of good faith.
Procedural posture

Debtor filed a motion to modify, pursuant to 11 U.S.C.S. § 1329(a), her confirmed chapter 13 plan, which valued her motor vehicle creditor's purchase money security interest claim at $6,268.11, payable at 4.25 percent interest. The creditor objected to the plan, asserting that the proposed modification failed meet the good faith requirement of 11 U.S.C.S. § 1325(a)(3), that the modification was unwarranted.

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Consumer opinion summary, case decided on July 08, 2011 , LexisNexis #0811-102