Suzette Woodward, Ch. 11, BK11-40936 (Apr. 29, 2014)
The court denied confirmation of the debtor’s Chapter 11 plan of reorganization, addressing a creditor’s objection on three grounds. First, the court ruled that the plan had been accepted by the holder of an impaired allowed post-petition claim. Second, the court declined to reverse its position that the absolute priority rule does not apply to individual Chapter 11 debtors. Third, the court found that, regardless of whether the means test deductions should be considered when calculating a Chapter 11 debtor’s disposable income, this debtor appeared to have more disposable income than she was proposing to pay toward the plan.