Today we received a "Trustee's Objection To Confirmation" letter, stating our proposed plan did not pass the liquidation test. What does this mean. We are panicing right now. Please help.
-
-
Hi Lucy,
I found this on another website.
Liquidation Test. One of the requirements under Chapter 13 bankruptcy is that the creditors are paid through your Chapter 13 Plan at least as much money they would have received if you filed a Chapter 7 petition. The amount payable to creditors in Chapter 7 depends largely on the value of your assets and your available exemptions. Therefore, it is important that you accurately list and provide a current fair market value of all of your assets in a Chapter 13 case, even though the purpose of a Chapter 13 is to avoid having you sell any of those assets.
Hope it helps,
Pilgrim
Comment