Wednesday – June 10, 2009
In re Powell, No. 08-82538, 2009 WL 910407, at *4–*5 (Bankr. C.D. Ill. Apr. 1, 2009) (Perkins)
Applying In re Smith, 286 F.3d 461 (7th Cir. 2002), that debtor borrowed $1,500 three days before petition and used $500 for bankruptcy attorney fees is not sufficient to prove bad-faith filing of plan under § 1325(a)(3). “In Smith, . . . [t]he court recognized that a plan could be confirmed despite egregious pre-filing conduct where the plan represents a good faith effort to pay creditors. . . . [E]ven if BETTY fraudulently obtained the loan from INCI, that by itself is not sufficient to warrant a bad faith plan determination.”
-from www.considerchapter13.org, the NACTT Academy for Consumer Bankruptcy Education
Applying In re Smith, 286 F.3d 461 (7th Cir. 2002), that debtor borrowed $1,500 three days before petition and used $500 for bankruptcy attorney fees is not sufficient to prove bad-faith filing of plan under § 1325(a)(3). “In Smith, . . . [t]he court recognized that a plan could be confirmed despite egregious pre-filing conduct where the plan represents a good faith effort to pay creditors. . . . [E]ven if BETTY fraudulently obtained the loan from INCI, that by itself is not sufficient to warrant a bad faith plan determination.”
-from www.considerchapter13.org, the NACTT Academy for Consumer Bankruptcy Education