Wolfson Bolton Kochis recently confirmed the Chapter 13 plan of a former small business owner in his individual capacity. By filing this matter as a personal Chapter 13 case, WBK’s Consumer Bankruptcy team secured the settlement of a non-dischargeable judgment, reducing the $1.2 million dollar claim to $105,000 payable over seven years. A majority of the settlement will be funded through the debtor’s Chapter 13 bankruptcy plan payments. The debtor will receive a discharge of debts at the end of his five-year bankruptcy plan notwithstanding the fact that the remaining portion of the settlement will be paid over an additional two-year period, interest free. The creditor further agreed that the $1.2m judgment claim will be subject to the individual’s Chapter 13 discharge upon completion of the settlement payments.
Not only will this consumer receive a discharge of all debts under his Chapter 13 bankruptcy, he will avoid significant tax consequences that would have resulted from the cancellation of debt if this settlement was reached outside of a personal bankruptcy.
This successful result was made possible by Wolfson Bolton Kochis’ knowledgeable, experienced team of insolvency professionals.
