Who Wins: A Chapter 13 Trustee or an Unrecorded Divorce Decree?

By Kara West, Staff Attorney for C. Kenneth Still, Standing Chapter 13 Trustee for the Southern Division of the Eastern District of Tennessee (Chattanooga)

 

It seemed so simple at first.  But soon I was headed down the rabbit hole and only a spirit board and strong pot of coffee could guide me back.  The issue arose at confirmation on a Trustee’s objection to confirmation.  Was the debtor paying as much to the unsecured creditors in her chapter 13 plan as such creditors would receive in a hypothetical chapter 7 liquidation?

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