US Bankruptcy Court DUT Docket Feed

Chapter 13 Plan Denied, Utah Homestead Equity

The United States Bankruptcy Court for the District of Utah denied confirmation of Matthew David Michel's Chapter 13 Plan, concluding that the Plan failed the best interest of creditors test under 11 U.S.C. § 1325(a)(4). The Court found equity existed in the homestead property because the Debtor's spouse had no cognizable legal interest in the property under Utah law on the petition date, despite execution of a quitclaim deed transferring a one-half interest to her shortly before bankruptcy filing. The Chapter 13 Trustee's objection to plan confirmation was sustained. Parties filing Chapter 13 plans in Utah involving homestead equity should carefully assess whether non-debtor spouses have recognized legal interests in property under state law, as courts will examine the petition-date ownership status in determining applicable equity.

Chapter 11 Trustee Appointed for Power Block Coin L.L.C.

The United States Bankruptcy Court for the District of Utah issued a Memorandum Decision appointing a Chapter 11 Trustee for Power Block Coin, L.L.C., a cryptocurrency financial services company with claims exceeding $192 million. The Court rejected Debtor's preference for converting the case to Chapter 7, finding that appointment of a Chapter 11 Trustee is in the best interests of creditors. The Official Committee of Unsecured Creditors and Debtor had filed competing motions, and the Court conducted a hearing before taking the matter under advisement. The case has been pending for approximately 21 months, with the crypto exchange having ceased operations.

Bankruptcy Court Permits Plan Modification for Vehicle Surrender

The US Bankruptcy Court for the District of Utah granted the Modification Motion filed by debtors Mike G. Carter and Nichole Carter under 11 U.S.C. § 1329, permitting them to surrender their Kia Sorento to Goldenwest Credit Union rather than continue making payments under their confirmed Chapter 13 plan. The court held that plan modification under § 1329(a)(1)-(a)(3) is permitted even where the confirmed plan originally provided for direct payment to the creditor outside the plan. The Trustee objected to the modification; the Credit Union did not object. This memorandum opinion supplements the court's order granting the modification.