- Category: Judge Karlin
- Published on 02 April 2010
- Written by Judge Karlin
SIGNED this 31 day of March, 2010.
JANICE MILLER KARLIN
UNITED STATES BANKRUPTCY JUDGE
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF KANSAS
JOANN ARLENE STORY, Case No. 09-41415
ORDER DENYING CONFIRMATION OF DEBTOR’S PLAN
AND SETTING DEADLINES
This matter is before the Court on the Objection to Confirmation of Fifth Third Bank.1 This
is a core matter pursuant to 28 U.S.C. § 157(b)(2)(K) and (L), and the Court has jurisdiction to enter
a final order pursuant to 28 U.S.C. § 157(b) and 28 U.S.C. § 1334.
On March 30, 2010, the Court read its Findings of Fact and Conclusions of Law into the
record after completion of a trial on the issue of the valuation of Debtor’s 2004 Ford Escape. The
Court incorporates by reference that oral decision. The Court found that Fifth Third Bank had
Case 09-41415 Doc# 29 Filed 03/31/10 Page 1 of 2
sustained its ultimate burden of demonstrating that Debtor’s plan, which calls only for the payment
of $4,500, plus interest, on its claim, fails to meet the provisions of 11 U.S.C. § 1325(a)(5)(B)(ii).
The creditor demonstrated that the appropriate value is $7,510, plus post-petition interest. The
Court noted its general approval of Judge Nugent’s reasoning in In re Cook,2 including his use of
the National Automobile Dealers Association (NADA) Clean Retail value as a valid starting point
for valuing personal use vehicles under the second sentence of 11 U.S.C. § 506(a)(2), with
appropriate deductions, some of which are noted in the opinion.
IT IS THEREFORE, ORDERED, THAT Fifth Third Bank’s Objection to Confirmation is
Sustained. Debtor is granted 14 days in which to file an amended plan, if she has the financial
ability, based on her existing financial situation, to pay the value determined (if she elects to retain
this vehicle). If Schedules I and J on file do not show the ability to cash flow a plan with the added
value, Debtor is similarly ordered to amend those, to reflect her actual income and expenses. The
Court will assume the last Schedules I and J on file accurately reflect her existing income and
expenses if they are not amended within 14 days.
IT IS SO ORDERED.
# # #
2415 B.R. 529 (Bankr. D. Kan. 2009).
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