Sample or case cite for liquidating Chapter 13 Plan?
Posted: Wed Jul 11, 2012 1:25 pm
Does anyone have a sample of a liquidating Chapter 13 plan (or sample language to insert in the miscellaneous provisions), or a case cite I could look up on Pacer? Any help (on or off the listserve) would be much appreciated.
Here is the scenario:
Debtor is two weeks from a foreclosure sale, but the home (according to her) has around $60 or $70,000 of equity. (but she is unlikely to receive more than $20,000 net, after costs of sale, etc.) She also has around $5,000 of cash that would be nonexempt under 704s.
Debtor would like to file Chapter 13 and try to get court permission to sell the house herself and claim the net sale proceeds as exempt. Under the liquidation analysis, she would need to pay at least $4,000 or $5,000 to Class 5, which she is prepared to do. She can make a very small monthly payment based on her income and/or pay a lump sum upon sale of the house. Questions:
1. I have never filed a plan like this--am I missing any obvious problems?
2. Would debtor have any chance of beating a MFRFS on the basis that the property is necessary for an effective reorganization if she keeps current on postpetition mortgage payments?
3. If answer to #2 is yes, would this be true even if she falls behind on postpetition mortgage payments? (She is going to try to get family help to pay the postpetition mortgage payments for a few months, until she can get the house sold, but whether she will be able to do so is questionable.)
The post was migrated from Yahoo.