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Mark B. Holtzen, Ch. 13, BK25-40270-BSK (Aug. 12, 2025)

After a trial, the bankruptcy court dismissed the debtor’s Chapter 13 case, finding that the debtor does not have “sufficiently stable and regular” income with which to make plan payments. The debtor’s monthly income is negative, and his largest monthly expense is his alimony and child support obligations. He is unable to fund his plan without financial contributions from his family, but there was no evidence that these gratuitous payments are stable or regular, as required by the Bankruptcy Code. The debtor’s father testified he would help the debtor as necessary by paying the debtor’s alimony and child support, but he would not commit to making those payments for the duration of the plan. In addition, there was no evidence of the father’s ability to make payments for the life of the plan. Because the debtor is unable to show that he has sufficient income exceeding his expenses from which he could maintain a payment schedule, he does not meet the § 109(e) eligibility requirements to be a Chapter 13 debtor.

Date: 
Tuesday, August 12, 2025
Judge: 
Judge Brian S. Kruse