The rookie bankruptcy lawyer called up to ask if the Chapter 13 plan had to provide the DMI amount in addition to the liquidation amount. Whoa! That’s taking good faith to an extreme. These are two different measures of what unsecured creditors are entitled to under Chapter 13. Section 1325(a)(4) requires that creditors get at […]
Consumer Debt Label Matters in 13
Consumer debt? Non consumer debt? Have mostly non consumer debt and you get a pass on the means test. Where else does the consumer/non consumer characterization matter: in Section 1301, where co debtors on a consumer debt are protected by the automatic stay. Section 1301 limits the scope of the co debtor stay to consumer […]
Learn the Bankruptcy Lingo: Pots & Percentages
While we’re learning to “walk the walk”, we might as well learn to “talk the (bankruptcy) talk”. Each profession has its shorthand for concepts that are encountered repeatedly. For bankruptcy lawyers, that includes the distinction between Chapter 13 “percentage plans” vs. “pot plans“. These terms are alternative ways that the dividend to unsecured creditors in […]
