Bankruptcy Case Rejected

  • Lawyers

Rejection of Bankruptcy by the Supreme Court

It is interesting to note that one of the appeals related to a Chapter 13 bankruptcy has been rejected by the Supreme Court. This instills a sense of doubt among debtors regarding the case and why the rejection was approved by the court.

Let’s understand the case in detail:

The debtor associated with the case had filed for personal bankruptcy under Chapter 13. As per the norms of this Chapter, he had proposed a repayment plan which he eventually modified for several times in a span of two years. The final proposal that the debtor submitted indicated that he should be permitted to pay his mortgage of $387,000 as a secured debt and the rest of his debts that amounted to $101,000 (mostly in liabilities) should be treated as unsecured debts. Through this proposition, the debtor would be paying $5,000 of his liabilities and also get to keep his home over the five-year term of his repayment plan.

The bankruptcy court of his state rejected this proposal and his plan. The debtor appealed the decision of the bankruptcy court. The Appellate court stood firm mentioning that the lower court’s decision was correct and the debtor proceeded to pursue his appeal to the Supreme Court. The Supreme Court justices rejected the petition stating that the debtor does not have the rights to appeal the decision of bankruptcy court, especially given the case that his plan was originally rejected by the same court. Every court should not have to review the plan individually and the rejection implied that it is an appellate issue.

Considering the above case, if you are perplexed on how to handle the Chapter 13 bankruptcy, Recovery Law Group can come to your rescue. Their team of bank attorneys will help the debtor to determine the debts to pay, the ones to seek exemption for and also coordinate on the approval of the repayment plan. Call the team at 888-297-6203. They provide services in Los Angeles, California, and Dallas, Texas. Be assured of their guidance as to the debt associated issue resolution and working on a repayment plan for Chapter 13 bankruptcies are their forte!


2019-06-21T11:29:49+00:00