1. What Bankruptcy Code requirements were at the center of this case?
2. On what ground did the trustee contend that the debtors had not proposed their Chapter 13 plan in good faith?
3. How did the court rule with respect to the trustee’s argument? Why?
4. In evaluating a debtor’s petition, what factors should be part of a good faith analysis? Should consideration of the calculation of disposable income play a role? Why or why not?

[David and Sharon Welsh] filed a voluntary Chapter 13 petition [in a federal bankruptcy court]. Their required schedules revealed the following assets: a home in Missoula, Montana, valued at $ 400,000, encumbered by a secured claim of $ 330,593.66; a Ford F- 250 valued at $ 10,000, encumbered by a secured claim of $ 18,959; a 2006 Subaru Outback valued at of $ 9,500, encumbered by a secured claim of $ 12,211; a 2005 Toyota Matrix valued at $ 2,200, encumbered by a secured claim of $ 1,996; .

  • CreatedJune 18, 2014
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