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In re Benjamin Stanley Kaiser dba Ben's Custom Wood and Cabinetry

Bankr. No.: 
95-50063
Chapter: 
13
Date of Decision: 
June 19, 1995
Issue: 
Whether Debtor's proposed plan appropriately provides for his ex-wife's claim?
Ruling: 
Debtor's ex-wife holds a claim for $10,000.00 plus interest. The claim arises from a pre-petition divorce decree. The decree also gave her a judgment on Debtor's real property in which Debtor has substantial equity. Therefore, Debtor must treat her claim as fully secured. Since the plan did not so treat the ex-wife's claim as fully secured, confirmation was denied. Further, the ex-wife's claim is dischargeable in a Chapter 13 case because it arises from a property settlement and is not a support debt.
Full Bankruptcy Court Decision: