Flores, et al. v. Danielson, No. 11-55452 (9th Cir. 2012)
Annotate this CaseDebtors proposed a three-year Chapter 13 plan of reorganization. The Trustee objected and argued that a five-year plan was required. At issue was whether, under 11 U.S.C. 1325(b), a debtor with no "projected disposable income" could confirm a plan that was shorter in duration than the "applicable commitment period" found in section 1325(b). The court concluded that the Trustee raised legitimate policy considerations as to why a mandated plan length might be desirable even though debtors have no projected disposable income. However, the court concluded that the bankruptcy court erred in disregarding the controlling precedent in Maney v. Kagenveama where Ninth Circuit precedent plainly allowed debtors to confirm a shorter plan under the facts of this case.
The court issued a subsequent related opinion or order on December 19, 2012.
The court issued a subsequent related opinion or order on August 29, 2013.
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