In re Akers, Case No. 17-70584 (1/3/2019)

The Court denied confirmation the Debtors’ Fourth Amended Chapter 12 plan and dismissed this family farmer’s case finding that the Debtor’s plan was not feasible under 11 U.S.C. § 1225(a).  The Court found it improbable that the Debtor would have sufficient income to make all his required payments under the plan, noting the Debtor’s mistake-laden record keeping and financial projections.  As the records and projected revenue and expenses were so inaccurate and unpersuasive, they did not demonstrate the Debtor’s probable compliance with the plan terms.  Therefore, the Court held that the Debtor failed to carry his burden on the feasibility prong of Section 1225.   The Court also denied leave to amend the plan under 11 U.S.C. § 1221 as the Debtor failed to show any reasonable likelihood of reorganization.  As the Debtor had multiple opportunities to present a confirmable plan and had been unable to do so, the Court dismissed the case.

Date: 
Thursday, January 3, 2019
Category: 
Burden of Proof
Chapter 12 Issues
Confirmation of Plan
Chapter: 
12