Bankr. No.:
86-10308
Chapter:
12
Date of Decision:
October 25, 1989
Issue:
Whether debtors, who had previously stipulated to the value of certain collateral, could later turn that collateral over to the secured party as full payment of the secured debt.
Ruling:
Debtors' attempt to turn over the collateral to completely satisfy a secured debt constitutes a post confirmation modification under ยง1229. No evidence has been presented which would warrant such modification. Further, the parties' stipulation clearly stated that the turn over of any collateral would only reduce the amount of the allowed secured claim by the value of the collateral, rather than extinguishing the claim.
Full Bankruptcy Court Decision:
