Ingram

ORDER Affirming Ruling of BanKruptoy Court

Debtors Alastair and Donna Ingram (“Appellants”) appeal from a Bankruptcy Court order denying confirmation of their Chapter 13 plan. Appellants argue the Bankruptcy Court erred when it applied a per se rule to deny confirmation. Additionally, Appellants assert the Bankruptcy Court committed clear error when it found Appellants did not propose their plan in good faith.

BACKGROUND

On August 29, 2011, appellants Alas-tair and Donna Ingram filed for bankruptcy pursuant to Chapter 13 of the United States Bankruptcy Code (“the Code”). In their bankruptcy schedules, Appellants listed assets including a house, two automobiles, miscellaneous funds in bank accounts, personal and household furnishings, and over $103,000.00 in several retirement accounts, all of which were exempted. Appellants’ Schedule F lists $39,611.73 in total unsecured debt. Appellants’ home is encumbered by two mortgages. As of the date of the bankruptcy petition, the first deed of trust was under-secured by $19,825.00. The second deed of trust was wholly unsecured with a value of $26,606.72 (the “second mortgage”). The Appellants’ Schedules I and J show a negative net…