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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I should have said best interest test. What level or % should

Customer Question

I should have said best interest test. What level or % should it be? 0 or 100?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 5 years ago.

WebLaw :

*Due to rules of your state bar or mine, nothing herein is intended as legal advice, only intended as general information to better help yourself.*

WebLaw :

What are you trying to accomplish

Customer:

The trustee is complaing that debts listed as disputed aren't getting paid.

Customer:

The best interest test is 100% on his objection.

WebLaw :

This is a chapter 13? Has a creditor objected?

Customer:

He is not taking into consideration the disputed debt (2nd mortgage) and taking the debt as proof of money to pay unsecured creditors. Until the mortgage , which has a objection filed against their claim and an adversary proceeding, the lien is still on the property, so even if he were to sell the property, there would be no money for the creditors.

Customer:

Just the trustee.

Customer:

He has also had the US trustee file an objection as they are claiming the 13 trustee hasnt received enough information about my financials, but he has been give business expenses, average income, taxes, etc.

Customer:

He has not told me what other information he could possibly want.

WebLaw :

The Best Interests Test is the value of payments made on each unsecured claim that is “not less than the amount that would be paid on such claim if the estate of the debtor were to be liquidated under a Chapter 7. Therefore if your plan pays at least 100% of your nonexempt assets over the life of the plan it should meet the test

Customer:

Exactly. There is nothing else for them to have. Theres no 401ks, cars, other property, etc. The unsecured creditors , which is actually just other tax debt, would not receive anything outside of the plan either way.

Customer:

Do you know what other financial information a trustee could possibly want?

WebLaw :

I do not see the trustee's position. Nor do I see anything else he could possibly want. You may want to bring a copy of your petition to local counsel to review

Customer:

Thats what I thought.

Customer:

Thank you for your time.

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