In re Keckler
United States Bankruptcy Court for the Northern District of Ohio
3 B.R. 155 (1980)
- Written by Steven Pacht, JD
Facts
Susan Keckler (debtor) stole approximately $9,300 from her then-employer, the Cleveland Trust Company (bank) (creditor). Keckler was imprisoned for this crime. Upon her release from prison, Keckler had trouble finding a job and eventually began working for her father for $215 per month while studying to become a court reporter. Keckler filed for Chapter 13 bankruptcy. As of her bankruptcy filing, Keckler had $925 in assets (all of which would have been exempt under Chapter 7) and $11,500 in unsecured debt, including her debt to the bank. Keckler proposed a plan under which she would pay $15 per month for 36 months, which would satisfy 5 percent of her debt to the unsecured creditors. The bank and the bankruptcy trustee objected to Keckler’s plan, arguing that Keckler did not submit the plan in good faith as required by Bankruptcy Code § 1325(a)(3). Specifically, the bank was concerned that Keckler would receive a full discharge of her debt pursuant to code § 1328 if she completed her plan, even though Keckler’s debt to the bank was not dischargeable under Chapter 7.
Rule of Law
Issue
Holding and Reasoning (White, J.)
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