In re Gamboa
Opinion
Lead Opinion
Latham, J.
MEMORANDUM DECISION AND ORDER ON CHAPTER 13 TRUSTEE’S OBJECTION TO CONFIRMATION OF CHAPTER 13 PLAN AND MOTION TO DISMISS N
Chapter 13 Trustee David L. Skelton has objected to confirmation of Debtors Raymundo and Patricia Gamboa’s Chapter 13 plan and moved to dismiss their case. The central issue is whether Debtors may retain an income-producing property and cure the mortgage arrears on it through their plan. The court finds that they may not, and so sustains the Trustee’s objection but denies his motion to dismiss.
I
Debtors’ plan provides for four initial payments of $1,342.29 and then $975.29 per month for the remaining 56 months. [ECF No. 60, p. 1 ¶ 1]. This yields a 1.01 percent dividend to general unsecured claims or a pro rata share of $2,075.65. [ECF No. 60, p. 3 ¶ 13]. Debtors propose to retain an income-producing property located at 9092 Libra Drive, San Diego, California (the “Libra property”). 1 The Libra property is a single-family residence-built in 1958. Debtors have no equity in the property, which is encumbered by a *55 mortgage with $49,811.15 in arrears. They propose to pay all of the arrears through their plan.