Combs v. Combs (In Re Combs)

34 B.R. 597, 1983 Bankr. LEXIS 5032
CourtUnited States Bankruptcy Court, S.D. Ohio
DecidedNovember 14, 1983
DocketBankruptcy No. 3-82-02518, Contested No. (A)
StatusPublished
Cited by3 cases

This text of 34 B.R. 597 (Combs v. Combs (In Re Combs)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Combs v. Combs (In Re Combs), 34 B.R. 597, 1983 Bankr. LEXIS 5032 (Ohio 1983).

Opinion

DECISION AND ORDER

CHARLES A. ANDERSON, Bankruptcy Judge.

FINDINGS OF FACT

Jerry Combs filed a petition for relief under Chapter 13 of the Bankruptcy Code *599 on 7 September 1982. On 19 October 1982 his proposed plan was duly confirmed providing for a 100% dividend to unsecured creditors, after payment of secured claims, by payments to the Trustee of $33.00 per month for thirty-six months. Despite the terms of his proposed plan as to secured creditors only four creditors were scheduled, all of whom were listed as unsecured, in the total amount of $705.25.

On 17 February 1983, the Chapter 13 Standing Trustee reported that the Debtor was two months delinquent in payments to the Trustee and by Order the Debtor was placed on probationary status pending the payment of future payments conformably to the Plan as confirmed, and providing for automatic dismissal upon any future reports of delinquency by the Trustee.

On 20 June 1983, the Debtor filed a proposed modification to the Plan to reduce payments to unsecured creditors to 10%. Simultaneously, he filed a list of 15 additional unsecured creditors, including Zerle-na Combs, his estranged wife and her attorney.

On 25 July 1983 within rule, Zerlena Combs and her attorney filed an objection to the proposed modification, to being added as creditors. At the hearing on 5 October 1983 on the Plan Modification and objections, the Debtor testified he is presently employed by “Avis Rent-A-Car,” earning $800.00 gross per month. He receives as a member of the U.S. Army Reserves $120.00 per month additionally.

The long list of claimants which the Debtor seeks to add as creditors constitute a liability imposed upon the debtor by the Common Pleas Court of Greene County, Ohio pursuant to a final decree for alimony only entered on November 4, 1982. The State Court also ordered the debtor and defendant therein to pay to the Plaintiff the sum of $60.00 per week commencing the 5th day of November 1982. These weekly payments are now delinquent in excess of the sum of $1,920.00. (possibly as high as $2,800.00).

The State Court alimony action was instituted prior to the petition filing herein on June 22, 1983, and came on for hearing on October 27,1982. The decree of alimony as mentioned was filed on November 4, 1982.

DECISION

None of the creditors as originally scheduled in the Chapter 13 case has filed objection to confirmation of the proposed modified plan. The objector does not raise any issues as to the confirmation of the Modified Plan, but merely “objects to being listed as creditors in this post Chapter 13 Amendment Plan.... ”

In behalf of the debtor it is urged: “Nothing in 11 U.S.C. § 1322 or in Rule 1009 of the Bankruptcy Rules of procedure provides that alimony arrearages or attorney fees are not includable in a Chapter 13 plan. It is clear that if alimony arrearages and attorney fees are includable in a Chapter 13 Plan, they are certainly includable by way of amendment at any time before the case is closed.” It is further urged, “The creditors argument does not lie in what is includable in a Chapter 13, but what is dischargeable pursuant to 11 U.S.C. § 523(a)(5).”

Even though the Objector does not specifically object to confirmation of the proposed Modified Plan, it has been argued by counsel that: “... the debtors original plan should not have been confirmed because it was not made in good faith.... The Final Decree for Alimony Only was journalized on November 4, 1982, while the hearing on the same was held on October 27, 1982. According to the Greene County Clerk’s Office, service had been obtained on Mr. Combs on June,24, 1982. When Mr. Combs signed the Chapter 13 Plan on September 7, 1982, he was aware that his spouse had filed an alimony only action against him.”

The creditors included on the amended schedules were proper claimants to be included in the schedules before the case came on for the confirmation hearing. As a result they did not receive notices to enable them to appear and be heard in opposition thereto. After the proposed amendment was filed, all of these added creditors were *600 duly served with notice by the Clerk as certified on 23 June 1983 and many of them filed proofs of claim without objection to confirmation.

On application of “a party in interest” at any time within 180 days of the entry of the order of confirmation, after notice and hearing a court may revoke the confirmation order if it was procured by fraud. 11 U.S.C. § 1330(a).

A confirmed Chapter 13 plan binds each creditor, whether or not the claim of the creditor is provided for by the plan, and whether or not that creditor has objected to, has accepted, or has rejected the plan. 11 U.S.C. § 1327(a).

There is no codified definition of the term “party in interest” despite liberal use of the term throughout the Bankruptcy Code. However, the term “claim” is broadly defined. 11 U.S.C. §§ 101(4), 101(6); and a “disinterested person” is defined. 11 U.S.C. § 101(13). In a reorganization case under Chapter 11 of the Code a party in interest is defined to include a creditors committee, but not an individual creditor. 11 U.S.C. § 1109(a).

Even though logic might dictate that the creditors omitted from the original filing were not then “interested parties” unless they appeared and by application were by court order listed, question of debt- or’s fraud or bad faith on confirmation of the plan is not now justiciable because not raised within 180 days of the entry of the order of confirmation. 11 U.S.C. § 1330(a).

Logic further would dictate, therefore, that the rights of such creditor must be asserted not as “interested parties” but pursuant to 11 U.S.C. § 523(a)(3), whereby creditors who neither are listed by the debtors in the schedules nor have otherwise learned of the case within the statutory limits may have their claims excepted from the discharge.

Contrary to the arguments of the objector, Bankruptcy Rule 1009 permits amendments by a debtor to add creditors “as a matter of course at any time before the case is closed.” Effectively to prevent non-dischargeability, nevertheless, such an amendment must be filed so as to allow the creditor a “timely filing of the proof of claim.” 11 U.S.C. § 523(a)(3).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Knupfer v. Wolfberg (In Re Wolfberg)
255 B.R. 879 (Ninth Circuit, 2000)
In Re Rodriguez
225 B.R. 628 (S.D. Texas, 1998)

Cite This Page — Counsel Stack

Bluebook (online)
34 B.R. 597, 1983 Bankr. LEXIS 5032, Counsel Stack Legal Research, https://law.counselstack.com/opinion/combs-v-combs-in-re-combs-ohsb-1983.