Christopher Conte v. Johnny Hill, et al
- Summarized by Caleb Chaplain , U.S. Bankruptcy Court, Western District of Virginia
- 6 months 3 weeks ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- 24-10264 (11th Circuit, Aug 01,2025) Not Published
- Tag(s):
-
- Ruling:
- The Eleventh Circuit affirmed the bankruptcy court’s denial of the chapter 13 trustee’s motions to modify two debtors’ plans. The Circuit held that while the trustee’s proposed modifications may have met the technical requirements of § 1329, the bankruptcy court did not abuse its discretion in denying the modifications because the settlement proceeds did not sufficiently increase the debtors’ ability to pay their unsecured creditors.
- Procedural context:
- The chapter 13 bankruptcy trustee sought to modify the confirmed plans of two debtors under § 1329 after each received personal injury settlement proceeds. The trustee wanted to use these settlement funds to increase the dividend paid to unsecured creditors—from 40.25% to 77.07% for Boutwell, and from 62.19% to 76.86% for Proffitt. The bankruptcy court denied the motions after an evidentiary hearing, and the district court affirmed. The trustee appealed to the Eleventh Circuit.
- Facts:
- Boutwell filed a chapter 13 petition in June 2018 and obtained confirmation of a plan requiring $852 monthly payments for 66 months, providing a 40.25% dividend to unsecured creditors. In August 2019, she was injured at a Dollar General store when merchandise fell on her head, causing bulged discs requiring surgery and ongoing pain management. She received a $45,000 settlement, netting $19,685.61 after fees and expenses. Boutwell lived paycheck-to-paycheck on disability payments, had vehicle repair needs, and owed money to her parents.
Proffitt filed a chapter 13 petition in November 2018 and obtained confirmation of a plan requiring $964 monthly payments for 60 months, providing a 62.19% dividend to unsecured creditors. In July 2022, she was injured in a slip-and-fall accident at Walmart, suffering cuts and exacerbating back pain. She received a $13,000 settlement, netting $7,685.39 after fees and expenses. Proffitt still needed additional surgery to remove scarring from her injuries.
- Judge(s):
- Branch, Abudu, and Kidd
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