Keathley v. Buddy Ayers Construction, Inc. · ¶10

An accurate bankruptcy estate is necessary for orderly bankruptcy proceedings. Chapter 13 allows a debtor to retain his property if he proposes, and a bankruptcy court confirms, a plan for debt repayment over a 3- to 5-year period. §§1306(b), 1322(d), 1327(b). Creditors and the trustee (who helps administer the bankruptcy proceedings) must understand the full scope of the debtor’s assets to determine whether to support or object to the proposed repayment plan. See §§1302(b)(2)(B), 1324(a), 1325(b); 8 Collier ¶1302.03, at 1302–8 to 1302–9. The estate also provides valuable information to the bankruptcy court because the court may confirm the debtor’s repayment plan only if the proposed repayments are “not less than the amount that would be paid” to creditors if the estate were liquidated under Chapter 7. §1325(a)(4). In addition, the value of the estate helps the court evaluate whether…

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