In Re William Andrews Elana Andrews, Debtors. William Andrews Elana Andrews v. Lawrence J. Loheit, Chapter 13 Trustee

Appellants filed a plan of reorganization to which only the Chapter 13 trustee objected. No secured creditors objected. The bank ruptcy appellate- panel (“BAP”) held that a Chapter 13 trustee had standing to object to confirmation of a plan under § 1325(a)(5) of the Bankruptcy Code. We have jurisdiction under 28 U.S.C. § 158 (d) and we affirm. We hold that the trustee had standing to object under 11 U.S.C. § 1325 (a)(1) rather than § 1325(a)(5).

I.

William and Elena Andrews, debtors, filed their Chapter- 13 petition concurrently with their plan of reorganization on February 28, 1992 (“plan”). The Andrews’ schedules listed four secured creditors with claims totalling $161,064, of which $13,933 was to be disbursed by the Chapter 13 trustee. The remainder, which was the amount due on the Andrews’ mortgage with Beneficial California, Inc., (“Beneficial”) would be paid directly by the Andrews. The Andrews also owed to. Beneficial a mortgage arrearage of $5,664. In addition, the Andrews owed $6,700 to General Motors Acceptance Corporation, $869 to Montgomery Ward, and $700 to Bank of America.

The plan proposed monthly payments of $396 over 60 months which would pay 27 percent of the.…