Bankr. No.:
87-30059
Chapter:
12
Date of Decision:
January 26, 1993
Issue:
Bank. Nos. 87-30059 and 87-30060 (jointly administered). (1) Whether, under the terms of the debtors' confirmed plan and related settlements, any objection to confirmation survived so as to trigger the disposable income provision of 11 U.S.C. § 1225(b)(1)(B)? (2) Whether any "zero" or "no dividend" plan payment to unsecured claim holders in the debtors' confirmed plan may be modified under 11 U.S.C. § 1229?
Ruling:
(1) The § 1225(b)(1)(B) triggering objection of the bank survived confirmation as provided in the settlement between the bank and the debtors. The settlement was incorporated into the debtors' confirmed plan and was not modified by the confirmation order. (2) Since the debtors are obligated to make disposable income payments but have not done so, all plan payments have not been completed. Accordingly, the plan may be modified under § 1229
Full Bankruptcy Court Decision:
Appeal Summary:
The district court affirmed the bankruptcy court’s decision.
Full Bankruptcy Appellate Panel/District Court Appeal Opinion: