When (or Not) Is the Best Interests of Creditors Test Applicable in a Modified Plan?

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN)

While the best interests of creditors test is applicable upon modification of a Chapter 13 plan, post-petition acquired property of the estate is not included in such analysis in that such property would not be property of a Chapter 7 estate. (Somers) In re Taylor, 2021 WL 3118824 (Bankr. D. Kan. July 21, 2021)

Case Summary

Leora May Taylor filed a Chapter 13 bankruptcy in August of 2016. The plan provided for monthly payments of $175 that did not provide for any distribution to . . .

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The Bankruptcy Moot Court Experience – Duberstein 2019

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Bankruptcy Code Section 521(e)(2)(A)(i) and (ii) provides that a debtor must supply tax returns to the trustee in a chapter 7 or 13 case, and to a creditor who timely requests such copy. Must the debtor provide copies that contain personal identifying information such as names, addresses and social security numbers of dependents including minor children? Or a redacted version...

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Recent headlines noted that March 2022 saw a 33.5% increase in bankruptcy filings over February. This could suggest the coming swell in bankruptcy cases anticipated since the start of the COVID pandemic. However, bankruptcy professionals recognize that consumer filings always spike in March (see chart). This phenomenon is usually attributed to the tendency to avoid filing in January and February...

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