In re Leverett (January 23, 2013)
Issue: Did Debtor's failure to disclosed a pending criminal case for alleged embezzlement, sale of boat prior to bankruptcy, and contract with criminal defense counsel constitute fraud sufficient to revoke Debtors' Chapter 13 plan?
Holding: Although bankruptcy is a protection afforded to the honest but unfortunate debtor, plan revocation is an extraordinary remedy. The standard for plan revocation requires showing not only that a debtor made materially false statements, but that the Court relied on the false statements in confirming the plan and that the Court would not have confirmed the plan had it known the true facts. In this case, the Chapter 13 Trustee did not provide sufficient evidence to show that, had the concealed facts been disclosed, the Court would not have confirmed the Debtors' plan. Motion denied.