In re Perkins

(Bankr. W.D. Ky. Dec. 22, 2016)

The bankruptcy court overrules the creditor’s objection and confirms the Chapter 12 plan. The creditor argued that the debtor was not a “family farmer,” and thus did not qualify for Chapter 12. The court finds that the debtor had sufficient income from the farming operation to satisfy the Code’s definition, which definition the court construes broadly. Further, the court finds the debtor’s debt level does not exceed the debt limitation for Chapter 12. The court looks only to the debtor’s schedules, rather than adding the scheduled debt to the debt reflected in the filed claims. Opinion below.

Judge: Lloyd

Attorney for Debtor: Sandra D. Freeburger

Attorneys for Creditor: Stites & Harbison PLLC, Brian H. Meldrum, Brian R. Pollock

2016-12-22-in-re-perkins

Author: Matt Lindblom

In re Willams

(Bankr. W.D. Ky. Apr. 22, 2016)

The bankruptcy court denies the U.S. Trustee’s motion to dismiss the Chapter 12 case. The debtors testified at their § 341 meeting of creditors that they had not engaged in a farming operation since two years before the petition was filed and did not intend to return to farming. The court applies the Code’s definition of “family farmer” and first finds that the debtors had engaged in a farming operation even though they contracted with their son to do the physical planting and harvesting of crops. The court also holds that the Code does not require the debtor to be engaged in a farming operation at the time the petition was filed, in part because Chapter 12 permits liquidation of the farming operation. Opinion below.

Judge: Lloyd

Attorney for Debtors: Kerrick Bachert PSC, Scott A. Bachert

Attorney for U.S. Trustee: Tyler Yeager

2016-04-22 – in re williams

Author: Matt Lindblom