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Espinosa strikes again

Posted on Mar 20, 2013 in Bankruptcy, Bankruptcy Information, BAPCPA, Chapter 13, Chapter 7, Wisconsin

A few years ago, the US Supreme Court decided a case called United Student Aid Funds, Inc. v. Espinosa.  The decision held that even when a Chapter 13 plan violates the Bankruptcy Code, the creditor must object within a set time or else they won’t get to object later, when the bankruptcy is done.  Apparently creditors still haven’t learned.

In a recent decision by Judge Kelley in the Eastern District of Wisconsin, the Court held that the creditor, American Family Mutual Insurance Company, was too late when it moved to reopen a long completed Chapter 13 to challenge an improper plan.  Even though the case was completed before the Espinosa decision, the principle still applied.

Creditors who receive a Chapter 13 plan should ALWAYS review them.  That is free advice from counsel for Chapter 13 debtors.

 

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