Case Summary:
Debtor returned to this Court asking that his second amended Chapter 13 plan be confirmed. Debtor initially came under this Court's jurisdiction as an involuntary Chapter 7 debtor and subsequently converted to a Chapter 13. Debtor filed a plan of reorganization and sought its confirmation. One of Debtor's petitioning creditors objected to the plan on the grounds that it did not satisfy 11 U.S.C. sec. 1325(a)(3)'s good faith requirement. Supporting its argument, the creditor pointed out that Debtor owes it a potentially non-dischargeable debt. It further argued that no sum would be paid to unsecured creditors under Debtor's plan and that the purpose of the Debtor's plan was to thwart his unsecured creditors. The Trustee also raised an issue as to the plan's feasibility noting that the original plan failed to satisfy a priority tax claim. Debtor had intended to use the proceeds from the sale of his gas station to pay that priority claim, but he did not have a full right to such proceeds at that time because his ex-wife also held a security interest in the property. This Court ruled that the plan could not be confirmed for its failure to meet the requirements of sec. 1322(a)(2) and sec. 507. This Court, however, granted Debtor leave to amend his plan to account for the priority tax claim. Debtor then obtained consent from his ex-wife to apply her share of the gas station's sale proceeds to the tax claim and filed an amended plan. The objecting creditor renewed its objection to confirmation and the trustee also objected to this amended plan because the Debtor proposed to make priority claim payments directly instead of through the trustee's office. The Debtor agreed to file a second amended plan responding to the Trustee's objection and the Trustee moved to dismiss the case. The case was then dismissed with a 14-day stay. The debtor filed the second amended plan within the 14-day stay period with an increase in payments and an extended plan length. The Trustee recommended confirmation of the second amended plan, but the creditor reasserted its prior objections. This Court determined that the plan could be confirmed over the objection of the creditor since it appears that debtor has made attempts to work out a repayment plan in accord with his current employment. The fact that Debtor had incurred a non-dischargeable debt to the objecting creditor would not mandate a finding of bad faith. Debtor's repayment plan appears to represent his best effort to repay his creditors and satisfies the good faith requirements for confirmation.

Statute/Rule References:
11 U.S.C. §507(a)(1) -- Priorities
11 U.S.C. § 523(a)(2)(A) -- Nondischargeability - Fraud
11 U.S.C. § 523(a)(6) -- Nondischargeability - Willful and Malicious Injury
11 U.S.C. § 1322(a)(2)
11 U.S.C. § 1325(a)(3)
11 U.S.C. § 1325(b)

Key Terms:
Confirmation - Chapter 13
Non-Dischargeable Debt