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These are some of the recent decisions issued by Bankruptcy Judge Manuel Barbosa for the United States Bankruptcy Court for the Northern District of Illinois, Western Division. The summaries posted herein are editorialized summaries prepared by Brian A. Hart. Therefore, neither Trustee Meyer nor Brian A. Hart make any warranties express or implied as to the accuracy of the summaries contained herein. Before relying on any case, you should obtain a full version of the transcript and make all appropriate legal conclusions based on your own reading and understanding of the case.
Good/Bad Faith
Two Chapter 13’s pending at the same time for the same debtor(s) is per say bad faith (Colle, 01 B 70619).
Issue of good faith is based on a totality of the circumstances and the debtor(s) bears the burden of proof of the elements of good faith as he does with the other requirements for plan confirmation under Section 1325 (Farley, 00 B 71727).
A zero percent plan is not per say bad faith, but the lower the percentage to unsecured creditors, the greater the scrutiny the court will impose (McClinton, 00 B 73096).
Motion To Incur
Request to purchase $18,000 automobile in 0% case denied as $18,000 vehicle is not reasonable and necessary. (Thompson 99 B 52491)
Secured Debts/Collateral
Secured creditors must file appropriate security documents to verify their secured status. Absence of such documentation, a claim may be treated by the trustee as an unsecured claim (Fleming, 01 B 73307).
Debtor(s) may modify a plan post-confirmation to surrender collateral and reclassify any deficiency as unsecured (King, 99 B 51935).
For purposes of determining the value of an automobile for secured purposes within a Chapter 13, the court will adopt an average of the retail and wholesale NADA prices as a starting point (Martina, 01 B 72463).
Debtors(s) plan of reorganization may provide for the release of a lien upon payment of the secured portion of the claim (Santos, 00 B 70745).
Automatic Stay
The court has also addressed the issue of the automatic stay and enforcement of child support (Lehman, 00 B 71256).
Disposable Income
Maintaining a motor home is not a reasonable and necessary expense (Anderson, 00 B 71861).
Cigarette expense is not a reasonable and necessary expense (Otts, 00 B 72097).
Miscellaneous Decisions
The court addressed issue of late filed unsecured claims in an unpublished decision (Smith, 98 B 53360) (Fare, 99 B 50683).
Student Loans
Student loans may be paid directly outside of the plan IF they are long term debt pursuant to Section 1325(b)(5). (Butterworth 01 B 73794)
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