Case Summary:
This matter came before the Court on the confirmation of a Chapter 12 plan. Debtor is a farmer dealing primarily in corn and soy beans. His plan sought to assume several leases and Debtor would have been liable for over $60,000 immediately upon confirmation. The Court found the plan lacked feasibility. Debtor's projections on his crop yields and expenses were unrealistic. The Court concluded, based on Debtor's historic income, that he would be unable to make plan payments. The Court also concluded that the proposed interest rate to Hiawatha National Bank, a creditor, was inadequate to compensate it for risk. The Court denied confirmation and dismissed the case, reasoning the interests of the estate and creditors would be better served by dismissal.

Statute/Rule References:
11 U.S.C. §305(a) -- Dismissal
11 U.S.C. §1225(a)(6) -- Feasibility

Key Terms:
Feasibility
Interest Rate
Plan Confirmation