In re McInerney

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UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISIONFeb 3, 2012
Case No. 11-58953 (Bankr. E.D. Mich. Feb. 3, 2012)

Case No. 11-58953

02-03-2012

In re: MICHAEL E. McINERNEY, Debtor.


Judge Thomas J. Tucker


ORDER REQUIRING DEBTOR TO AMEND DISCLOSURE STATEMENT

On February 1, 2012, Debtor filed a plan and disclosure statement, in a document entitled "Debtor's Amended Combined Plan of Reorganization and Disclosure Statement" (Docket # 153). The Court cannot yet grant preliminary approval of the disclosure statement contained within this document ("Disclosure Statement"). The Court notes the following problems, which Debtor must correct.

First, Debtor states in Paragraph 3.2 of the Plan, on pages 12-13, that Class II will be paid as follows: "[a]ny arrearage under the Profit Sharing Note existing as of the Confirmation Date will be added back to the principal balance, with the amortization schedule extended accordingly. Profit Sharing Plan will be paid in full according to the terms of the Profit Sharing Plan Note and the Profit Sharing Plan Mortgage." Second, in Paragraph 3.4 of the Plan, on page 13, Debtor states that Class IV "will be paid in full according to the terms of the Stechschulte Note."

With respect to both Class II and Class IV, Debtor must state what the specific proposed payment terms are, including when payments are to be made, and in what amounts, and for what duration, and at what interest rate(s), if any.

The Court's order entitled "Order Requiring Debtor to Amend Disclosure Statement," filed on January 26, 2012 (Docket # 150) at p. 2 (Item "Fourth"), required Debtor to do this, but Debtor has not yet done so.

Third, with respect to the treatment of Class III, in Paragraph 3.3 of the Plan on page 13, Debtor must state that Class III is impaired, and that the holder of the Class III claim is entitled to vote on the Plan. This is so because the Citizens Bank Note matured, and Debtor defaulted, pre-petition, and the Plan does not propose to reinstate the maturity of this claim as it existed before Debtor's default. See 11 U.S.C. § 1124(2)(B).

Fourth, with respect to both Class V and Class VII, in Paragraphs 3.5 and 3.7 of the Plan on pages 14 and 15, respectively, Debtor must state when the monthly payments of $1,837.00 and $2,102.00 will begin.

Accordingly,

IT IS ORDERED that no later than February 7, 2012, Debtor must file an amended combined plan and disclosure statement that is consistent with this Order.

IT IS FURTHER ORDERED that no later than February 7, 2012, Debtor also must provide to Judge's chambers, a redlined version of the amended combined plan and disclosure statement, showing the changes Debtor has made to "Debtor's Amended Combined Plan of Reorganization and Disclosure Statement" (Docket # 153), filed February 1, 2012. Debtor must submit this redlined document to chambers electronically, through the Court's order submission program.

________________________


Thomas J. Tucker


United States Bankruptcy Judge