In re Whitlock (03-31112)
The chapter 13 debtor served as executrix of her father's estate. The debtor breached her fiduciary duty and was removed as executrix by the probate court. The debtor's brothers obtained a state court judgment and were awarded actual damages, punitive damages, and attorney's fees.
The debtor filed for Chapter 13 relief and proposed a Chapter 13 plan that would pay a six percent dividend to her brothers.
The brothers contended that the debtor's proposed plan was not proposed in good faith and did not meet the disposable income test. The Court reviewed the debtor's income and expenses and applied the Kitchens factors in deciding whether the plan was proposed in good faith. The Court held that the debtor's proposed plan was confirmable.