Critical Case Comment–Who is Responsible to Address Eligibility Questions?

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of TN (Nashville)

Bankruptcy Court is under an obligation to examine the eligibility of a debtor to file Chapter 13 even where no party raises a timely, written objection. (Seibel) Preuss v. Perry (In re Perry), 7:20-cv-04617-CS (S.D. N.Y., Sept. 21, 2021)

Case Summary

Bruce Perry filed a Chapter 13 petition in July of 2019. His secured claims totaled $429,657 and unsecured claims totaled $427,103. In calculating his projected disposable income, Perry listed an expense . . .

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