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May 18, 2010

Confirmation of an Individual Chapter 11 Plan - What a Concept!

I actually got an individual chapter 11 plan confirmed yesterday.  The plan said the debtor will pay the first on his home according to its original terms.  The second was wiped out and treated as unsecured - the "Lam Motion."  Unsecureds paid x amount per month for five years.  The unsecureds voted for the plan (only four voted).  What was interesting is that once the judge said "plan confirmed," no one was sure what to do next.  There was discussion about when the discharge should be entered (at the end of the plan payments), whether a final decree could be entered and when (when the plan is substantially consumated), whether the case could be closed on substantial consummation and then re-opened five years from now - yes.  We were all admitting that this is kind of new territory.  I am going to file a Motion for Final Decree quickly so the case can be closed and the UST fees and reporting will end.  Then reopen five years from now and seek the final decree and an order avoiding the second on the home.  We'll see what happens.  I have 10 or 12 more of these in the hopper now.     

May 18, 2010 in Current Affairs | Permalink

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Comments

Interesting post. I assume this individual exceeded the C13 debt limits and that's the reason for the individual C11. Curious - what is meant by "substantial consummation" beyond obtaining plan approval? If the case is temporarily closed, how will the C11 TEE get its commission on the plan payments?

Posted by: Conrado | May 18, 2010 9:45:57 AM

Great! Which case? Who is the judge? Will the UST oppose the Motion for Final Decree?

Posted by: Gerald Wolfe | May 19, 2010 10:52:53 AM

I am contemplating a C11 because I have exceed C13 debt limits. Should I be concerned that it is a rarity for a plan to be confirmed. I may have the option of filing as a small business instead of an individual-- but most of the debts are in my personal name and not the business. Are the chances of a confirmation better as a small business?

Posted by: Ni Johnson | Sep 14, 2010 9:01:46 PM

You're in Minnesota? How are you going to get around Shotkoski?

Posted by: Knute Rife | Jan 28, 2011 3:07:58 PM

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