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Opinion 293

Case Name: 

In re Creech

Judge: 
Judge Clark
Date: 
Nov-13-1989
Case Number(s): 
86C-5249
Status: 

UNPUBLISHED

Body: 

Creditor that had sold farm equipment to chapter 12 debtors moved to dismiss their bankruptcy case pursuant to 11 U.S.C. § 1208(c)(6) and Bankruptcy Rule 1017, based on their failure to make payments on the confirmed plan. Although debtors continued making plan payments to their other creditors, they had decided approximately one year after their plan had been confirmed that the equipment was not productive or cost-efficient. Debtors proposed to surrender the farm equipment on the ground that surrender would be in the best interests of the estate. Debtors also attempted to assert defenses to their contract with lender. The court found debtors' proffered cure to be unacceptable, since it would require amendment of their confirmed plan and such an alteration would threaten the integrity of confirmed reorganization plans generally. The court further concluded that the confirmed plan was res judicata as to all issues that could have been raised in defense of a claim prior to confirmation, and debtors' defenses were thereby precluded. Finally, the court determined that dismissal was an appropriate remedy in the case, in part, because no creditors had objected to the motion to dismiss.

Internal Ref: 
Opinion 293
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