In re Jordan (04-60215)
Creditor, Wells Fargo Bank N.A., objected to the confirmation hearing in the Jordan case because the Debtor was modifying the value of property in the plan. Wells Fargo argued that the property at issue was the Debtor’s principal residence and thus could not be modified under 11 U.S.C. § 1322(b)(2), and that the Debtor’s plan was not filed in good faith. The court held that the date for deciding whether a creditor qualifies for section 1322(b)(2) protection is at the time of filing, not when the obligation arose. Because the Debtor had moved at the time of filing, the property was not his principal residence. However, the court denied confirmation because the plan was not filed in good faith. The property which the Debtor was attempting to cram down was not necessary for his maintenance or support. Rather, the Debtor’s son, who was neither a debtor nor a dependant, was living on the property and made the Trustee payments.