Heritage Bank v. Woodward (In re Woodward)
- Citation:
- Heritage Bank v. Woodward (In re Woodward), Case No 15-6001 (8th Cir. B.A.P. August 13, 2015)
- Tag(s):
-
- Ruling:
- Creditor whose claim was allowed after litigation of an objection was an allowed claim for purposes of voting and plan confirmation and creditor could not argue that creditor was not a "creditor" for the purposes of voting on the debtor's plan. Despite having an accepting impaired class, confirmation of the debtor's plan was not appropriate because the absolute priority rule applies in individual chapter 11 cases and the plan in question violated the absolute priority rule. Remanded for a new confirmation hearing.
- Procedural context:
- Appeal of order from the bankruptcy court for the District of Nebraska confirming individual chapter 11 debtor's fifth amended plan over the objection of Appellant.
- Facts:
- In a case converted from chapter 7, prior to conversion the individual chapter 11debtor acquired property post-petition including execution of a note and mortgage on the property. Mortgage holder filed a proof of claim after the case converted to chapter 11 and the claim was deemed allowed over objection of the Appellant, an unsecured creditor. Subsequently, Appellant objected to confirmation of the Debtor's Fifth Amended Plan where the only accepting, impaired class consisted of the mortgage holder (impaired by agreeing to extend the maturity date of its note).
- Judge(s):
- Federman, Schermer, and Shodeen
ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!
