2021 Judge Kaplan - Opinions

Judge Michael B. Kaplan -- Opinions signed in 2021

Eric J. Winnegrad and Sharon Winnegrad, Case No. 19-22700 (01/21/2021)
Objection to Confirmation

Debtors, who were unable to maintain their chapter 13 plan payments after they lost their jobs as a result of the COVID-19 pandemic, were not able to confirm a modified plan that called for no payments for two years. After considering feasibility objections cited by the standing chapter 13 trustee and the debtors’ arguments under the Coronavirus Aid, Relief, and Economic Security Act, the Court held that while debtors were qualified to modify their plan under changes made to the Bankruptcy Code by the 2020’s CARES Act, they must still satisfy the requirements of Section 1325(a) of the Bankruptcy Code for a court to approve their modified plan. The trustee objected to confirmation of the modified plan as not feasible and not proposed in good faith because it did not provide for payment of a mortgage arrearage, did not provide payments for two years, and did not explain how debtors would resume their payments. The Court sustained the trustee’s objection, but deferred ruling on the trustee’s motion to dismiss debtors’ case to allow them to propose a feasible modified plan.