In re Paasch
Opinion
Lead Opinion
Bufford, J.
ORDER DENYING CHAPTER 13 PLAN CONFIRMATION
I. INTRODUCTION
Debtor Christopher S. Paasch, a racehorse trainer, has proposed an amended Chapter 13 1 plan in this case, pursuant to which most of his plan payments would come from money that he intends to borrow from one of his clients. The Court finds that such a plan is not confirmable and denies confirmation.
II. RELEVANT FACTS
Christopher Paasch (“Paasch”) requests the court to confirm his chapter 13 plan, proposed principally to deal with support and property division payments owing to his ex-wife Arlene Kovnick. Pursuant to the plan, Paasch proposes to pay $2,399 per month for the benefit of his creditors during the remaining 26 months of his 36-month plan. Under the plan, the administrative claims and the unsecured claims of Kovnick and the IRS claim will be paid in full. The remaining unsecured creditors will receive payment of 4.93% of their claims.
However, based on his disposable income, Paasch admits that he can only afford plan payments of $508 per month after the payment of reasonable and necessary living expenses. Paasch proposes to cover the shortfall of $1,891 per month by borrowing $50,000 from a client, and to…