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In re Sauter (Case No. 08-72050) 02/11/09

The United States Trustee objected to the Debtor’s chapter 13 plan to the extent it did not satisfy the chapter 7 liquidation test pursuant to 11 U.S.C. § 1325(a)(4). The Debtor argued that the limit to a chapter 7 Trustee’s compensation is determined by the Trustee’s distributions to both secured and unsecured creditors. The Court decided not to rule how chapter 7 Trustees ought to be compensated in a chapter 13 case because of its proximity to an advisory opinion. However, the Court sustained the Trustee’s objection. The Court held that, in the alternative, the Debtor had not established by a preponderance of the evidence that the chapter 7 liquidation test had been satisfied.

Date: 
Tuesday, August 11, 2009
Category: 
Confirmation of Plan
Liquidation Test
Chapter: 
13