Date of Decision:
May 25, 2022
Whether the chapter 12 debtors' modified plan was feasible, was proposed in good faith, and should be confirmed pursuant to 11 U.S.C. § 1225?
No. The debtors failed to show their ability to fund their modified plan was probable, since their projected cash flow statements were not well grounded in objective facts and they failed to deal with the reality of their aging cow herd. The debtors' modified plan was not offered in good faith since it proposed to repay over 15 years a creditor whose claim arose from fraud.
Full Bankruptcy Court Decision: