In re: Willie J. and Peggy A. Jones

10 B 04352

Debtor filed a motion pursuant to 11 U.S.C. § 362(k) against secured creditor who refused to accept Chapter 13 plan payments for certain pawned property provided for in the confirmed plan. Debtor sought creditor’s compliance with the plan or, alternatively, damages. Secured creditor responded with a motion to amend the debtor’s Chapter 13 plan pursuant to 11 U.S.C. § 1329, 11 U.S.C. § 362(d), and Federal Rule of Bankruptcy 9024 (incorporating Federal Rule of Civil Procedure 60), stating that the plan had been confirmed in error because the debtor no longer had an interest in certain pawned property because of a failure to comply with 11 U.S.C. § 541(b)(8). The creditor’s motion was denied for lack of standing, res judicata, and because exceptional circumstances did not exist. As there was no reason for the court to believe the creditor was not bound by the terms of the Plan, the debtor’s motion was granted.

Thursday, February 24, 2011