Thomas J. Tucker
Chapter 11
Judge Thomas J. Tucker
ORDER REQUIRING DEBTOR TO AMEND DISCLOSURE STATEMENT
On February 27, 2014, Debtor filed an amended plan and disclosure statement, in a document entitled "Combined Amended Plan of Reorganization & Disclosure Statement" (Docket # 65). The Court cannot yet grant preliminary approval of the disclosure statement contained within this document ("Disclosure Statement"). The Court notes the following problems, which Debtor must correct.
First, Debtor must state which claims are being treated in Group 1 of the Plan on page 4 in Paragraph 3.1, e.g., the claim of the Debtor's attorney, and Debtor must estimate the amount of each claim.
Second, in Paragraph 3.3 of the Plan on page 4, Debtor must list the priority tax claims that are being treated in Group 3, and state the amount of each claim. If there are no priority tax claims, Debtor must state this.
Third, Paragraph 4.1 of the Plan on page 5 states, in relevant part:
As to
all Creditors in Class 1, the Plan leaves unaltered the legal, equitable and contractual rights such claim or interest entitles the holder of such claim or interest.
Creditors in Class 1 shall receive regular monthly installment payments in the contract amount as set forth in the relevant note and installment agreement.
Creditors possessing
Class 4 Claims shall retain lien rights pursuant to
11 U.S.C. §1129(b)(2).
The language in bold erroneously indicates that the claims of multiple creditors are being treated
in Class 1 although Santander's claim is the only claim being treated in Class 1. Debtor must change the language in bold so that it correctly indicates that the only claim being treated in this Class is the claim of Santander. Also, Debtor must change "Class 4" in the last sentence to "Class 1."
Fourth, the Debtor's statements regarding her funding of the Plan, in Paragraph 6.2(b) on page 6, are not clear enough. If Debtor intends to propose that she make plan payments in the amount of $462.00 bi-weekly for 60 months after the Effective Date, then she must say so clearly in this Paragraph. If Debtor intends some other payment commitment, then she must state that clearly in this Paragraph.
Accordingly,
IT IS ORDERED that no later than March 5, 2014, Debtor must file an amended combined plan and disclosure statement that is consistent with this Order.
IT IS FURTHER ORDERED that no later than March 5, 2014, Debtor also must file a redlined version of the amended combined plan and disclosure statement, showing the changes Debtor has made to the "Combined Amended Plan of Reorganization & Disclosure Statement" filed February 27, 2014.
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Thomas J. Tucker
United States Bankruptcy Judge