789 F.2d 577 (7th Cir. 1986), 85-2418, Matter of Bear

Docket Nº85-2418.
Citation789 F.2d 577
Party NameIn the Matter of Peter BEAR, Debtor. WISCONSIN HIGHER EDUCATION CORP., Appellant, v. Peter BEAR, Appellee.
Case DateApril 28, 1986
CourtUnited States Courts of Appeals, Court of Appeals for the Seventh Circuit

Page 577

789 F.2d 577 (7th Cir. 1986)

In the Matter of Peter BEAR, Debtor.

WISCONSIN HIGHER EDUCATION CORP., Appellant,

v.

Peter BEAR, Appellee.

No. 85-2418.

United States Court of Appeals, Seventh Circuit

April 28, 1986

Argued Feb. 28, 1986.

Page 578

Lloyd J. Blaney, Buffett Dew Blaney Olson & Lasker, Madison, Wis., for appellant.

Barbara E. Cohen, Boardman, Suhr, Curry & Field, Madison, Wis., for appellee.

Before WOOD and EASTERBROOK, Circuit Judges and BARKER, District Judge. [*]

BARKER, District Judge.

This is an appeal from the District Court's interpretation and application of Chapter 13 of the Bankruptcy Act, commonly known as the "Adjustment of Debts of an Individual with Regular Income," 11 U.S.C. Sec. 1301 et seq. The District Court affirmed an order of the Bankruptcy Judge confirming the debtor's Chapter 13 plan, from which decision Appellant, the Wisconsin Higher Education Corporation ("WHEC"), now appeals. For the reasons stated below, we affirm the District Court's decision.

I.

The debtor, Peter Bear, owed the WHEC $16,531.41 for educational loans made to him to finance his undergraduate and legal education. When he was apparently unable to meet this obligation, as well as some other debts, he filed for relief under Chapter 13 and a schedule for partial repayment of those debts was devised. More specifically, the plan provided for payment of all of his back taxes and approximately six percent of Bear's outstanding obligations to his unsecured creditors, including WHEC, and after five years all debts were to be discharged. Under the plan, Bear allocated to his creditors that portion of his take-home pay which exceeded his expenses.

The Bankruptcy Court held an evidentiary hearing to receive objections to the plan. The WHEC was the only creditor objecting to confirmation of the plan. These objections notwithstanding, the Bankruptcy Court, at the conclusion of the hearings, determined that debtor's plan, in its final form, met all the standards required under Chapter 13 and adopted the plan, but imposed two additional conditions on Bear: (1) that at six-month intervals, and any time he changed his employment, he file with the Bankruptcy Court an amended budget showing his income and expenses, and (2) that he file copies of his income tax returns with the trustee.

On appeal to the District Court, WHEC argued that the...

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