GERALD FINES, Chief Judge, Bankruptcy
This matter having come before the Court on a Motion to Lift Stay Filed by DaimlerChrysler Services North America, L.L.C.; Motion to Dismiss Filed by DaimlerChrysler Services North America, L.L.C.; and Objection to Motion to Lift Stay and Motion to Dismiss filed by the Debtor; the Court, having heard arguments of counsel and being otherwise fully advised in the premises, makes the following findings of fact and conclusions of law pursuant to Rule 7052 of the Federal Rules of Bankruptcy Procedure.
The Debtor originally filed for relief under Chapter 13 of the Bankruptcy Code on July 6, 1999. The Debtor was represented in the filing of her petition and her Chapter 13 Plan by Erik A. Martin Associates. The Debtor's original Chapter 13 Plan filed on July 7, 1999, provided little detail, other than that the Debtor proposed to pay the Trustee the sum of $720 per month for a period of 60 months. The Debtor was not well represented by the law firm of Erik A. Martin Associates, as was first evidenced by a typographical error in her Chapter 13 Plan which stated:
In the event general unsecured creditors receive less than 10% within 60 months, debtor shall continue to make Plan payments for an additional 24 months, or until the Trustee has received sufficient funds to pay 10% to allow general unsecured creditors, whichever occurs first.
This error was in clear contravention of 11 U.S.C. § 1322 of the Bankruptcy Code, which limits Chapter 13 plans to no more than 60 months. Although a minor error, it is indicative of the poor representation which the Debtor received. In fact, since the time of the Debtor's Chapter 13 filing, Attorney Erik A. Martin was convicted of criminal contempt in an unrelated matter, and is no longer practicing law.
Although the Debtor's Chapter 13 Plan provided little detail, it is apparent that the Debtor intended to pay Creditor, DaimlerChrysler, the sum of $28,225, which represented the value which she placed on DaimlerChrysler's collateral, a 1998 Dodge Durango. Only one objection was filed as to the confirmation of Debtor's Chapter 13 Plan, and that was by DaimlerChrysler, which, in pertinent part, stated: "Debtor's plan fails to pay Chrysler's secured claim in full. A monthly payment of at least $970.00 is needed for the term of the plan." At confirmation on November 4, 1999, Debtor's counsel agreed to increase the plan payment to $970 to satisfy the only objection raised by DaimlerChrysler. The Debtor's Chapter 13 Plan was confirmed on this basis, with payments to be made to the Trustee in the amount of $970 per month for a period of 60 months.
There is no dispute between the parties that, at the time of the Debtor's filing for a Chapter 13 bankruptcy, the value of DaimlerChrysler's collateral was the sum of $28,225, as indicated in Debtor's bankruptcy petition. There is further no dispute that the Trustee has paid that sum to DaimlerChrysler. However, DaimlerChrysler argues that it filed a secured claim in the amount of $45,628, on July 26, 1999; and, there being no objections to that claim, it should have been paid in its entirety. While it is true that there was no objection filed as to DaimlerChrysler's claim, it is clear that one should have been filed. The claim lists the value of the collateral as the full amount of the claim of $45,628. This is clearly an erroneous assertion. The undisputed evidence indicates that the Debtor purchased the subject vehicle at a time when it was already a year old, and had in excess of 15,000 miles on it. The evidence also indicates that the $45,628 claim not only represented the value of the vehicle, but also represented additional warranties, add-ons, and pro rated interest over the life of the payment schedule. Unfortunately, as indicated above, the Debtor was not well represented in these proceedings. As a result, both the Debtor and the Trustee operated on the assumption that the payment of $970 per month for a period of 60 months would not only satisfy the Debtor's general unsecured creditors, but would also satisfy DaimlerChrysler based upon the fact that said payment met with the terms of the Objection to Confirmation of Plan which had been filed.
In addition to the understandable confusion of the Trustee and the Debtor created by the poor representation provided by Debtor's counsel, the Court must note that the payment of $970 per month for 60 months would have never been sufficient to pay DaimlerChrysler's claim as filed given other allowed claims and administrative expenses required to be paid under Debtor's Chapter 13 Plan. Thus, the payment by the Trustee of the sum of $28,225, appeared to be appropriate absent further guidance from either Debtor's counsel or Creditor, DaimlerChrysler. Further, the Court notes that it must have been clear to DaimlerChrysler that the stream of payments that it was receiving from the Trustee would never satisfy its claim as filed in full. Yet, DaimlerChrysler did not raise the issue as to the amount of its claim or the insufficient payment until Debtor's 60 month Plan was at its conclusion. For these reasons, the Court must find that the Motion to Lift Stay Filed by DaimlerChrysler Services North America, L.L.C. and the Motion to Dismiss Filed by DaimlerChrysler Services North America, L.L.C. must be denied.
A review of the payment history of Debtor's Chapter 13 Plan reveals that the Debtor has substantially complied with the terms of the Plan, general unsecured creditors have been paid 10% as proposed, and Creditor, DaimlerChrysler, has been paid a sum equal to the value of their collateral at the time of Debtor's Chapter 13 filing. Thus, the Court finds that entry of a discharge in Debtor's favor is appropriate, pursuant to 11 U.S.C. § 1328(b). Following discharge, Creditor, DaimlerChrysler, must release its lien on the title to Debtor's 1998 Dodge Durango, with said title being delivered to the Debtor at the earliest possible moment.
ORDER
For the reasons set forth in an Opinion entered on the 1st day of March 2005;
IT IS HEREBY ORDERED that:
A. The Motion to Lift Stay Filed by DaimlerChrysler Services North America, L.L.C. is DENIED;
B. The Motion to Dismiss Filed by DaimlerChrysler Services North America, L.L.C. is DENIED;
C. A discharge should be entered in favor of Debtor, Lisa M. Walker, pursuant to 11 U.S.C. § 1328(b); and,
D. Upon entry of the discharge, DaimlerChrysler is directed to release its lien on the title to Debtor's 1998 Dodge Durango, and deliver the title to the Debtor at the earliest possible moment.