CRITICAL CASE COMMENT: In re Hicks

In re Hicks, 2011 WL 2414419 (Bankr. N.D. Ala. June 15, 2011) (Robinson)

A Chapter 13 plan proposing to pay claims secured by property that is not reasonable or necessary will not be confirmed as the plan lacks requisite good faith, even where the debtors satisfy the technical requirements of the disposable income test.

Case Summary

The Debtors proposed a Chapter 13 plan which would pay to the Trustee $1,000 per month for 60 months, paying ten cents on the dollar to unsecured creditors. The Trustee objected to confirmation of the plan . . .

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