Case Conclusion Date: 07.21.2006
Practice Area: Chapter 13 bankruptcy
Outcome: The Court Denied the Trustee's Objection to Plan
Description: The Trustee objected to the debtors paying less of their disposable income than what was listed on their CMI form. The court said that the Debtors were required to pay the projected disposable income amount to the unsecured creditors based on their financial situation as of the petition date. The Bankruptcy Code allowed for modification of a bankruptcy plan to address changed conditions. The Trustee's position would prevent debtors from utilizing the very provisions of the Bankruptcy Code enacted to meet changing financial conditions. The court denied the Chapter 13 Trustee's objection to confirmation and request for dismissal and confirmed debtors' Chapter 13 plan.