Bankr. No.:
94-30036
Chapter:
13
Date of Decision:
June 19, 1995
Issue:
(1) Whether the secured claim of SD's Conservation Reserve Enhancement Program should be valued at confirmation for plan purposes? (2) What is the value of the secured claim of Debtors' mother and mother-in-law where Debtors had reported to SBA pre-petition that the balance was less than now claim in the bankruptcy case? (3) Whether SBA has a perfected, secured interest in Debtors' life insurance policy? (4) What is the effect on Debtors of the settlement between SBA and First Fidelity Bank?
Ruling:
(1) The Reserve Enhancement Program's secured claim should be valued at confirmation for plan purposes. (2) SBA must commence an adversary proceeding if it wants to challenge the validity, priority, or extent of an insider's claim. (3) SBA has a perfected, secured interest in Debtors' life insurance policy with Aid Association for Lutherans. (4) The Court does not have sufficient information to determine the effect on Debtors of the settlement between SBA and First Fidelity Bank.
Full Bankruptcy Court Decision:
