In re Trainor

(Bankr. S.D. Ind. Dec. 22, 2014)

The bankruptcy court overrules the creditor’s objection to the Chapter 13 debtor’s proposed plan. The creditor was the debtor’s ex-wife. She objected to the plan, arguing both the petition and the plan were filed in bad faith, as the debtor’s sole motivation was to discharge a judgment she had obtained following the divorce. The court discusses the standards for showing a petition and plan are filed in bad faith. The creditor failed to satisfy either standard. Although there were inaccuracies in the debtor’s schedules, they did not rise to the level of showing fraud or bad faith. The court ordered the debtor to correct the schedules and file an amended plan if necessary. Opinion below.

2014-12-22 – in re trainor

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