Critical Case Comment

Drummond v. Welsh (In re Welsh), 2013 WL 1192961 (9th Cir., Mar. 25, 2013) (Ripple)

A bankruptcy court is precluded from considering whether a chapter 13 debtor has “accounted for” Social Security income in determining whether a plan is proposed in good faith; a chapter 13 debtor’s proposal to retain and pay secured debt upon luxury items does not establish a lack of good faith.

Case Summary

Mr. and Mrs. Welsh were above-median income debtors with unsecured claims totaling approximately $180,500. Although Mrs. Welsh was employed as a nurse, Mr. Welsh was retired and received a pension . . .

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