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.
Creditor filed a motion to have its adversary complaint objecting to the dischargeability of an obligation, which was filed before the deadline to file proofs of claim in the debtor's chapter 13 case, construed as an informal proof of claim. The court denied the motion. Although the complaint evidenced the creditor's intent to hold the debtor liable for the obligation, it did not express an intent to hold the chapter 13 estate liable.
Chapter 13 debtors who experienced a reduction in income immediately preceding the filing of their bankruptcy petition proposed to pay unsecured creditors less than the distribution required under the means test. The trustee opposed confirmation of the plan. The court determined that the term "projected disposable income" should not always be based solely on a historical perspective of income from Form B22C alone, but rather other evidence could be considered when a debtor experiences a significant change in circumstances reducing income at or around the time of the bankruptcy filing.
After the chapter 13 debtors defaulted under the terms of their prepetition lease and the automatic stay was lifted, the vehicle was repossessed by the creditor and sold. The creditor asserted an administrative claim for the amounts remaining due under the lease. The court granted the creditor’s motion, finding the obligation was beneficial to the estate.
Below-median income chapter 13 debtor's plan, which proposed to limit contribution of one half of debtor's tax refunds to the first three years of the plan and use the funds to shorten the length of the plan, was not proposed in good faith.
The state brought an adversary proceeding against the debtor, seeking a determination that an obligation for child care overpayments was nondischargeable. The court granted summary judgment to the state, finding Wisconsin Works (W2) Child Care Subsidy overpayments to chapter 7 debtor were domestic support obligations within the meaning of sec. 101(14A) and thus nondischargeable pursuant to sec. 523(a)(5).
Chapter 13 debtors' attorney was "unsecured creditor" entitled to share in the unsecured creditors' pool of monthly disposable income under sec. 1325(b)(1)(B).
Chapter 13 debtor could not deduct student loan payment as an additional expense claim on Line 59 of Form 22C due to "special circumstances."
Chapter 7 debtor owed plaintiff insurance company a subrogation claim resulting from damages to vehicle driven by debtor without permission of owner. Because previous state court action did not litigate the issue of intent, the plaintiff's motion for summary judgment in sec. 523(a)(6) proceeding was denied.
In adversary proceeding involving the conflicting legal rights of two creditors in the business assets of the debtor, summary judgment was granted, in part, and denied, in part. Although bank had knowledge of debtor's previous pledge of assets to creditor, bank perfected its security interest first, making its lien superior. The creditor's request, in the alternative, for marshaling of assets could not be granted, as a matter of law, at the summary judgment stage.