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Appealing Order Confirming Chapter 13 Plan -
New Trial or Reconsider the Matter
There are limited instances where a creditor may ask the court for a new trial or to reconsider the matter, under Rules 59 and 60 of the Federal Rules of Civil Procedure, which apply to bankruptcy cases under Bankruptcy Rules 9023 and 9024. However, appeals and motions to reconsider/for a new trial, are not commonplace.
Creditors and The Confirmed Plan
Absent a direct appeal or motion to reconsider, the creditors cannot otherwise attack the provisions of a confirmed plan or raise new arguments that were not made at the confirmation hearing. The lone exception is where a creditor alleges that the debtor committed fraud in obtaining the OCP. Bankruptcy Code Section 1330 allows such motions to be filed within 180 days of entry of the entry of the OCP.
Debtor Not Technically Eligible for Chapter 13 Relief
Sometimes, a Chapter 13 plan will have provisions that do not comport with the provisions of the Bankruptcy Code, or where the debtor was not technically eligible for Chapter 13 relief because he had debts in excess of the eligibility limits of Section 109(e) of the Bankruptcy Code. In some cases, such plans are confirmed anyway. Recent cases have held that the plan provisions are binding on the creditors nevertheless, because they failed to act in a timely fashion to protect their rights. These cases also state that the court has the power to punish debtors and/or their attorneys, if there appeared to be willful violations of the Bankruptcy Code. Therefore, from the creditor's perspective, it is very important to understand the impact of a bankruptcy filing, and as deemed necessary to seek the advice of competent counsel in this area.
Written by Henry Rendler
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