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 as the creditor did not have standing under § 1329 and its argument under § 362(d) was barred by res judicata since creditor failed to allege that it had not been provided with notice of the bankruptcy or the plan. The creditor’s Rule 60 arguments were similarly denied as these circumstances were not so exceptional as to warrant relief from judgment post-confirmation.

Thursday, February 24, 2011