In the Matter of Walter Leon Delaney, Bankrupt. Federal National Mortgage Association v. Walter Leon Delaney

In June of 1973, the bankruptcy court approved a debt payment plan voluntarily filed under Chapter XIII of the Bankruptcy Act by Walter Leon Delaney. Pursuant to Chapter XIII, the “wage earner’s” bankruptcy provision, the bankruptcy court assumed jurisdiction over all of Delaney’s property and over all of his debts, other than debts secured by real property. See 11 U.S.C. §§ 1006(1), (4), 1011 (1970). Creditors were stayed, pursuant to 11 U.S.C. § 1014, from foreclosing or otherwise enforcing a lien on any of Delaney’s property, unless authorized by the bankruptcy court. The court required…