Secured creditor filed an objection to confirmation of the chapter 13 debtors' plan, arguing the financing of the negative equity on the debtors' used trade-in vehicle was included in the financing of their new vehicle purchase, resulting in its claim being protected from cram down under sec. 1325(a). The debtors argued the negative equity resulting from the trade-in of their old vehicle was not part of the purchase money security interest, and was thus not subject to the 910-day rule imposed by the hanging paragraph in sec. 1325(a). The court sustained the creditor's objection, concluding the entire amount of the debt securing the new vehicle met the definition of purchase money security interest.
Chapter 7 pro se debtor moved for the appointment of counsel pursuant to 28 U.S.C. sec. 1915(e)(1). The court denied the motion, finding no exceptional circumstances justified the appointment of pro bono counsel.
The chapter 13 trustee opposed confirmation of plan which treated student loan creditor as separately classified creditor, arguing it unfairly discriminated against the other unsecured creditors. The court overruled the trustee's objection, finding the specific provisions of sec. 1322(b)(5) for the cure of arrearages and maintenance of regular payments on long term indebtedness applied and superceded the general unfair discrimination provisions of sec. 1322(b)(1).
The plaintiffs in theft by contractor cause of action were entitled to judgment of nondischargeability under sec. 523(a)(4). The court found the services performed for the debtor's construction company fell within the provisions of both the old and new versions of Wis. Stat. sec. 779.02(5).
The chapter 13 trustee opposed confirmation of the debtor's plan because she included non-escrow homeowners' insurance and real estate taxes on Line 47 of Form 22C. The court overruled the trustee's objection as it related to the deduction for insurance and property taxes because, even though those expenses were not paid into an escrow account, such payments were required by the contract that created the security interest.
Creditor opposed the chapter 11 debtors' proposed disclosure statement on the grounds that it did not adequately describe the cross-collateralization of the debtors' obligations to it. The court determined the debtors' original mortgage on their homestead did not secure the subsequent business notes.
Debtor who was currently incarcerated in a prison that was experiencing difficulties with its telephone service moved for at least a temporary waiver of the prepetition credit counseling requirement. Prisoner's motion for exemption from credit counseling was denied by the court because no "exigent circumstances" existed, of a kind entitling the debtor to a temporary waiver of the requirement. Furthermore, the debtor's incarceration did not rise to the level of "disability," of a kind warranting a permanent waiver of the credit counseling requirement.
Trustee's objection to debtor's motion for modification of confirmed chapter 13 plan was sustained. Although debtor failed to remit one-half of tax refunds as required by confirmed plan, she proposed to cease payments to unsecured creditors, arguing they had already received the dividend provided for in the confirmed plan. The court concluded the debtor's attempt to receive a discharge after defaulting on the plan and violating the terms of the confirmation order was impermissible.
Lender's security interest, perfected within 90 days of the debtor's petition date, was avoided under s. 547 of the Code. The lender's defenses of equity and equitable subrogation were rejected by the court.
Secured creditors' objections to chapter 13 plans were sustained, in part, and overruled, in part. The plan provision providing for separate treatment of prepetition arrearage(s) as contractually current was allowed, as interpreted by the court. The plan provision providing the mortgage(s) was current upon discharge was not allowed.