Case Summary:
Trustee sought approval of stipulation with debtors concerning the nonexempt portion of their homestead.  The stipulation proposed that the debtors would “buy back” the nonexempt portion for $29,000.00, secured by a promissory note and mortgage.  The largest creditor objected, contending that the settlement was unreasonable and should not be approved.  The court held that while the best interests of the estate is the “benchmark” for determining the propriety of a settlement, a creditor’s views are not controlling.  Rather, the court must determine whether the settlement falls below the lowest point in the realm of reasonableness.  The settlement agreement was not so unreasonable, and would be approved.

Statue/Rule References:
11 U.S.C. § 523(a)(5) -- Nondischargeability - Divorce Decrees

Key Terms:
Divorce Decrees – Maintenance or Property Division
Settlement