Filed: Mar. 24, 2017
Latest Update: Mar. 24, 2017
Summary: ORDER REQUIRING DEBTOR TO AMEND DISCLOSURE STATEMENT THOMAS J. TUCKER , Bankruptcy Judge . On March 22, 2017, the Debtor filed a plan and disclosure statement, in a document entitled "Debtor's First Amended Combined Plan and Disclosure Statement" (Docket # 73). The Court cannot yet grant preliminary approval of the disclosure statement contained within this document ("Disclosure Statement"). The Court notes the following problems, which Debtor must correct. First, on page 5 of the Plan, De
Summary: ORDER REQUIRING DEBTOR TO AMEND DISCLOSURE STATEMENT THOMAS J. TUCKER , Bankruptcy Judge . On March 22, 2017, the Debtor filed a plan and disclosure statement, in a document entitled "Debtor's First Amended Combined Plan and Disclosure Statement" (Docket # 73). The Court cannot yet grant preliminary approval of the disclosure statement contained within this document ("Disclosure Statement"). The Court notes the following problems, which Debtor must correct. First, on page 5 of the Plan, Deb..
More
ORDER REQUIRING DEBTOR TO AMEND DISCLOSURE STATEMENT
THOMAS J. TUCKER, Bankruptcy Judge.
On March 22, 2017, the Debtor filed a plan and disclosure statement, in a document entitled "Debtor's First Amended Combined Plan and Disclosure Statement" (Docket # 73). The Court cannot yet grant preliminary approval of the disclosure statement contained within this document ("Disclosure Statement"). The Court notes the following problems, which Debtor must correct.
First, on page 5 of the Plan, Debtor must include the following caption for Paragraph D.2: "Classes of Claims and Interests."
Second, in the last paragraph of Paragraph D.1.c on page 5 of the Plan, after describing the priority tax claims of both the Internal Revenue Service and the "Michigan Treasury," Debtor states:
The Debtor will pay this claim 100 percent in full in 60 equal monthly installments beginning on the Effective Date plus interest at the applicable statutory rate which is equal to the Prime Rate or 3.75 percent. The monthly payment will be $5,512.32.
(Emphasis added). It is not clear whether this statement is intended to apply only to the Michigan Treasury claim, or rather to the claims of both the Internal Revenue Service and the Michigan Treasury, combined. (Debtor does not otherwise state any treatment of the priority tax claim of the Internal Revenue Service.) Debtor must state the treatment of the claims of each of these tax creditors separately.
Third, in Paragraph F of the Plan on page 6, Debtor must state the material terms of the lease of real property between Debtor and Hassan Chaaban, and Debtor must state explicitly whether it is assuming or rejecting such lease.
Accordingly,
IT IS ORDERED that no later than March 28, 2017, the Debtor must file an amended combined plan and disclosure statement that is consistent with this Order.
IT IS FURTHER ORDERED that no later than March 28, 2017, the Debtor also must file a redlined version of the amended combined plan and disclosure statement, showing the changes Debtor has made to "Debtor's First Amended Combined Plan and Disclosure Statement" filed March 22, 2017.
