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Problem 6 . 3 : What if , when the Chapter 1 3 trustee is reviewing the filed claims, she notices that the All American

Problem 6.3: What if, when the Chapter 13 trustee is reviewing the filed claims, she notices that the All American Pawn Shop has filed a claim indicating that it has a perfected security interest in a 12-gauge shotgun recently purchased by Eric McPherson. Upon further investigation, the trustee discovers that the shotgun was purchased for $600, its current value is $400, and the balance owed to All America is $50. The trustee knows that the shotgun is nonexempt under state law. Is the 40-month plan confirmable? Suggestion: Does the introduction of the gun increase the amount of money that would be available to distribute to unsecured creditors in Chapter 7 and thus cause the plan not to meet the best-interest-of-creditors test? Return to the formula used by the attorney to compute the minimum number of months. If 40 months is inadequate, how many months is adequate?
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