In the Matter of Artrist Ratliff, Debtor. B. W. Alden, Trustee v. United States

In September 1968, Ratliff filed a voluntary petition to be adjudicated a bankrupt. Unsecured debts totaled $5,294.-47; there were -no secured debts. The only asset, aside from exempt property, was furniture with a resale value of $50. In October he petitioned to convert the bankruptcy proceeding to one under Chapter XIII, listing the same debts and assets as in the bankruptcy schedules. The proposed plan provided that “unsecured debts shall be dealt with generally and paid pro rata. * * * ”

The United States filed proof of claim, designated claim No. 2, in the Chapter XIII proceeding,…