Chapter 13, Bankr. No. 07-40584.United States Bankruptcy Court, D. South Dakota.
January 21, 2011
Thomas A. Blake, Esq., Counsel for Debtors, Sioux Falls, South Dakota.
Trustee Dale A. Wein, Aberdeen, South Dakota.
Cash Depot, Inc., Leah Leisinger, Sioux Falls, South Dakota.
CHARLES NAIL JR., Bankruptcy Judge
The matter before the Court is Debtors’ Notice of Filing of Certification and Request for Discharge and Setting Deadline for Response. This is a core proceeding under 28 U.S.C. § 157(b)(2). As set forth below, Cash Depot, Inc.’s objection to the notice will be overruled and Debtors’ general discharge order may be entered.[1]
Summary of material facts. David Alex France and Kristi Lynn France (“Debtors”) filed for relief under chapter 13 of the bankruptcy code. Pursuant to provisions of that chapter, they proposed a plan to repay their debts to the extent mandated by the code as well as permitted by their particular financial circumstances. All creditors, including Cash Depot, Inc., received a notice of the commencement of the case and a copy of the plan and were given a deadline to file any objections to the plan. Trustee Dale A. Wein was the only party in interest to file an objection to the plan. His objection was resolved at a hearing held December 20, 2007. Debtors filed a Plan as Confirmed as required by the Court.
The Plan as Confirmed required Debtors to pay Trustee Wein $200.00 per month over a three-year period beginning in November 2007 and required Trustee Wein to use those funds to pay administrative expenses and timely-filed claims. Numerous claims were timely filed.
Shortly after the three-year plan payment term expired, Trustee Wein filed a
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notice Debtors had completed their plan payments. As required by Bankr. D.S.D. R. 3072-1B, Debtors filed a Certification and Request for Discharge. Cash Depot, Inc. timely filed an objection. It stated its full claim had not yet been paid. The matter was taken under advisement.
Discussion. The bankruptcy code does not require a debtor in a chapter 13 case to repay all his debts in full. Instead, the code requires certain types of debts, such as child support obligations and administrative expenses, to be paid in full while general unsecured claims need to be paid to the fullest extent possible, after considering the particular debtor’s income and reasonable expenses. 11 U.S.C. §§ 507, 1322(a), and 1325. Once a debtor has made those required plan payments, he may receive a discharge of the unpaid balance of the general unsecured claims against him. 11 U.S.C. § 1328(a).
In this case, Debtors’ income and reasonable expenses allowed them to pay only a portion of the general unsecured claims against them. They have completed all the payments required by the three-year term of their plan and the bankruptcy code. Trustee Wein has certified there are no additional funds to pay claims. Accordingly, Cash Depot, Inc.’s objection is overruled and Debtors may receive their discharge of debts. The standard discharge order will be entered.