In re Meeks
United States Bankruptcy Court for the Middle District of Florida
237 B.R. 856 (1999)
- Written by Jody Stuart, JD
Facts
Charles and Debra Meeks (debtors) filed for Chapter 13 bankruptcy in November 1997. GMAC (creditor) then filed a claim in the Meekses’ bankruptcy case for $6,822. Of that claim, $5,888 was secured by the Meekses’ Cadillac vehicle, and the remaining amount of the claim was unsecured. In September 1998, the Meekses confirmed a Chapter 13 plan that specified the Meekses would pay GMAC the full amount of GMAC’s secured claim over 36 months instead of the 14 months remaining under the original contract. Four months after confirmation, the Meekses filed a motion to modify the confirmed Chapter 13 plan. In particular, the Meekses sought permission to surrender the Cadillac to GMAC and to then reclassify the unpaid remainder of GMAC’s claim as unsecured. The bankruptcy trustee consented to the modification, and the bankruptcy court granted the motion on an ex parte basis. No notice had been given to GMAC. Subsequently, GMAC filed a motion to vacate the modification order. In the meantime, GMAC sought and was granted relief from the automatic stay in order to take possession of the Cadillac. GMAC then sold the vehicle, and the remaining amount due on its secured claim was $2,165.
Rule of Law
Issue
Holding and Reasoning (Jennemann, J.)
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