Hardy v. Cinco Federal Credit Union

DeMASCIO, District Judge.

The debtor appeals an order of the bankruptcy judge denying confirmation of the debtor’s Chapter 13 plan. Under the terms of the debtor’s proposed plan, all allowed unsecured claims would be paid in full over a five-year period. The unsecured creditors, however, would receive no interest on their claims. In denying confirmation, the bankruptcy judge found that all unsecured claims would be paid in full if the debtor’s estate was liquidated. Upon this finding, the bankruptcy concluded that the “liquidation test” stated in 11 U.S.C. § 1325(a)(4) was not met. The…