In re Montoya
United States Bankruptcy Court for the District of Utah
341 B.R. 41 (2006)
- Written by Jody Stuart, JD
Facts
Heather Montoya (debtor), who filed for Chapter 13 bankruptcy, had previously purchased a Dodge vehicle and owed a debt to Menlove Dodge (Menlove) (creditor). Menlove held a security interest in Montoya’s vehicle. Montoya’s Chapter 13 plan proposed to bifurcate Menlove’s claim into secured and unsecured portions. The plan stated that the failure of a creditor to file an objection to the plan prior to confirmation would constitute acceptance of the plan and the treatment of the creditor’s claim. Menlove did not object to the proposed plan. Montoya and the bankruptcy trustee then asserted that the plan should be confirmed because a creditor’s failure to object to a proposed plan constituted acceptance of the plan. The parties agreed that bifurcation of Menlove’s claim would not be in compliance with statutory bankruptcy law.
Rule of Law
Issue
Holding and Reasoning (Boulden, J.)
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