McManus v. Avco Financial Services of Louisiana, Inc.

JOHNSON, Circuit Judge:

I

Two bankruptcy cases, both arising out of Louisiana, have been consolidated for ap*354peal. In the case of McManus v. Avco Financial Services of Louisiana, a husband and wife filed a joint petition for relief under Chapter 13 of the Bankruptcy Act, 11 U.S.C.A. § 1301, et seq. In the couple’s petition and proposed plan, Avco Financial Services of Louisiana (Avco) was listed as an unsecured creditor. Avco, however, in its proof of claim and in a formal rejection of the couple’s proposed plan, established that it was a fully secured creditor. Avco held a promissory note…