Hollytex Carpet Mills v. John v. Tedford and Viola J. Tedford

John and Viola Tedford (appellees) filed a petition pursuant to 11 U.S.C. §§ 1301-1330, together with a proposed plan, on May 14, 1980. The United States Bankruptcy Court for the Western District of Arkansas, later confirmed the plan. In the confirmed plan, appellees proposed to pay appellant an amount not less than what it would receive under a “straight liquidation” proceeding under Chapter 7 of the Bankruptcy Code.

At the time appellees’ plan was confirmed, they had elected to utilize the federal exemptions available to them pursuant to 11 U.S.C. § 522(d). Appellees filed a third…