Chapter 13 Plan Denied, Utah Homestead Equity

Fri, 24 Apr 2026 02:07:11 +0000
Bankruptcy

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.