Chapter 7 then Chapter 13: Abuse of the spirit of Chapter 13?

October 12, 2011

In re Hixon; Case No. 11-30850-DOT; September 9th, 2011 The Trustee objected to the the chapter 13 plan on the grounds that the plan or petition was not filed in good faith under 11 USC 1325(a)(5) and (a)(7). The Trustee alleged that the petition and plan were not filed in good faith because the only [...]

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Paying off non-filing spouse’s creditors in a Chapter 13 NOT “good faith”

August 19, 2007

In re Stanley; Case No. 10-50152; August 19th, 2010 Mr. Stanley, a below median debtor, filed a Chapter 13 bankruptcy by himself, although he was married.  He held a low paying job and his wife did not work, though she did receive unemployment compensation.  Most of her compensation went towards her own outstanding debt and [...]

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