In re Nagy

Full title: In re GEZA NAGY, Debtor.

Court: United States Bankruptcy Court, Southern District of California

Date published: Jul 19, 2011

10-07003-PB13 (Bankr. S.D. Cal. Jul. 19, 2011)

Opinion

In re GEZA NAGY, Debtor. No. 10-07003-PB13 United States Bankruptcy Court, Southern District of California July 19, 2011

         NOT FOR PUBLICATION

          ORDER ON TRUSTEE'S OBJECTION TO CONFIRMATION OF DEBTOR'S CHAPTER 13 PLAN

          PETER W. BOWIE, Chief Judge

         Debtor filed a Chapter 7 case on or about November 18, 2008, and received a discharge on February 18, 2009. Thereafter, debtor filed a Chapter 13 case on May 7, which was dismissed on April 20, 2010. Then debtor filed the instant Chapter 13 case on April 28, 2010. The Chapter 13 trustee objected to debtor's proposed plan because debtor is ineligible for a Chapter 13 discharge pursuant to 11 U.S.C. § 1328(f), and debtor had filed a motion to strip off a junior lien, making it an unsecured debt. The trustee recognized that a sequential chapter 13 was not in itself, prohibited, but argued that the Plan proposed by debtor, coupled with the lien strip motion, would result in unreasonable delay to unsecured creditors, including any stripped off junior lien creditor.

         Because the effects of § 1328(f), and multiple associated issues were, and still are unsettled the Court invited supplemental briefing, which was provided. In his brief, debtor stated he was thereby withdrawing his lien strip motion. Thereafter, the matter was taken under submission.

         While the matter was under submission, the trustee renewed and supplemented his objections to confirmation, to include 1) arrears in payments to the trustee; 2) plan length if the plan has to provide for the junior lien; and 3) clarifying the record on whether debtor is pursuing the lien strip while amending the plan to be consistent. The trustee has requested a hearing on its objections for July 27, 2011.

         In the meantime, this Court has rendered its view of some of the issues presented by a Chapter 20, and involving a lien strip, in its decision in In re Victorio, ___ B.R. ___, 2011 WL 2746054 (2011). While some of the discussion in that opinion is relevant to some of the issues in this case, intervening events in this case have overtaken that part of the trustee's original objection.

         Accordingly, this matter is no longer under submission, and future hearings will determine its outcome.

         IT IS SO ORDERED.