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In re: Wendy Sue Giannini

21 B 13170
Chapter 13 Trustee sought dismissal prior to confirmation, arguing that the proposed plan did not comply with 11 U.S.C. § 1325(a)(6).  HELD: Debtor did not establish by a preponderance of the evidence that she would be able to make all payments under the plan and to comply with the plan.  To be feasible, a plan must have a reasonable likelihood of success.  Although this requirement is not rigorous, a debtor must show that her income exceeds expenses by an amount sufficient to make the proposed payments.  While Debtor had sufficient disposable income on the petition date, her spouse’s monthly severance pay would end in September 2022, leaving her with negative disposable income.  Her assertions that she would have additional income from a new job and a friend’s voluntary contributions, and that her spouse would look for employment, were not supported by evidence.  Neither were her vague contentions that there was room in her budget to reduce expenses.  Therefore, she could not satisfy the feasibility requirement of § 1325(a)(6).

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Wednesday, July 27, 2022