Bankr. No.:
87-30137
Chapter:
12
Date of Decision:
June 26, 1995
Issue:
Whether creditor could participate in distribution of disposable income where creditor had obtained post-petition funds from the co-makers on Debtor's note as part of a deal not to contest Debtor's disposable income but where the creditor had not applied those funds against the debt against Debtor?
Ruling:
The secured creditor was allowed to participate in the disposable income distribution. Its post-petition deals were with Debtor's co-makers, not Debtor, and both Debtor and the co-makers were represented by counsel. Further, all parties were bound by the confirmed plan although it did not accurately set forth this creditor's secured and unsecured claim.
Full Bankruptcy Court Decision:
