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In re: Mary Ann Pappone

20 B 05362
The court granted the chapter 13 Trustee’s motion to modify plan, increasing Debtor’s plan payments to reflect previously undisclosed commission income.  About a month later, Debtor filed her own motion to modify plan, alleging that her employer had changed her position and she was no longer eligible for commissions.  The Trustee opposed the Debtor’s motion on the grounds that her plan was not proposed in good faith.  HELD: Debtor submitted two letters from her employer to document the change in her employment.  Her proposed plan payments included income that she could have excluded, as benefits received under the Social Security Act.  And, she offered to turn over any future bonuses and to provide copies of her paystubs.  Although Debtor had previously submitted schedules that did not disclose all of her commission and bonus income, the question before the court was whether Debtor’s conduct supporting this plan represented a good faith effort to satisfy her creditors’ claims.  Considering the totality of the circumstances and finding that it did, the court granted her motion to modify plan.

Friday, July 14, 2023