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eastern district of arkansas

In re Torelli

Ruling
Court denied confirmation of the debtor's chapter 12 plan because it did not propose to pay a bank the present value of the bank's fully secured claim and because the plan was not feasible.
Procedural posture

Debtor filed for bankruptcy protection under chapter 12 and sought confirmation of a chapter 12 plan. Objector secured creditor objected to confirmation of the proposed plan. The court held a confirmation hearing.

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opinion summary, case decided on February 28, 2006 , LexisNexis #0306-066

In re Petty

Ruling
Trustee's objection to plan confirmation was overruled since the debtors'proposed charitable contribution did not exceed the cap of 15 percent of the debtors'gross income.
Procedural posture

The chapter 13 trustee objected to confirmation of the debtors'proposed plan. The basis for the trustee's objection was that the debtors have scheduled monthly charitable contributions, in the form of weekly tithes and offerings to his church, while only paying unsecured creditors approximately one percent of their claims over the life of the plan. The trustee also moved for dismissal of the case pursuant to 11 U.S.C. § 1307.

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opinion summary, case decided on February 10, 2006 , LexisNexis #0406-065

In re Petty

Ruling
Trustee was denied a dismissal request since the trustee failed to show the debtors filed their plan in bad faith.
Procedural posture

The chapter 13 trustee objected to confirmation of the debtors'proposed plan. The basis for the trustee's objection was that the debtors have scheduled monthly charitable contributions, in the form of weekly tithes and offerings to his church, while only paying unsecured creditors approximately one percent of their claims over the life of the plan. The trustee also moved for dismissal of the case pursuant to 11 U.S.C. § 1307.

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opinion summary, case decided on February 10, 2006 , LexisNexis #0406-063

In re Williams

Ruling
Court denied the debtor's motion to be excused from filing a certificate of credit counseling and ordered the debtor to file either the required certificate of credit counseling or certification of exigent circumstances or risk dismissal of the case without further notice or hearing.
Procedural posture

Debtor requested a waiver of the requirement to obtain budget and credit counseling under 11 U.S.C. § 109(h). Rather than filing the required certification, the debtor filed a motion to be excused from filing a certificate of credit counseling.

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opinion summary, case decided on November 28, 2005 , LexisNexis #0306-071