As part of a petition under Chapter XIII of the Bankruptcy Act, Edward Cheetham submitted a wage earner’s plan to a referee in bankruptcy. Although Universal C.I.T. Credit Corp. [hereinafter referred to as C.I.T.] was listed as a secured creditor in Cheetham’s plan, no further mention was made of the corporation. C.I.T. rejected the plan and proposed to take back its security, an automobile in Cheetham’s possession. The referee confirmed the plan over C.I.T.’s objection and denied C.I.T.’s petition for reclamation. Upon appeal, the district court reversed on the grounds that C.I.T.’s acceptance was a condition precedent to proper confirmation of the plan.
Bankruptcy: Enforcing a Chapter XIII Wage Earner's Plan over the Objection of a Secured Creditor,
San Diego L. Rev.
Available at: https://digital.sandiego.edu/sdlr/vol6/iss1/5