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Question: Ponoroff has about $100,000 of equity in his home. He's also in deep financial doo-doo and, in order to keep his house, Ponoroff has filed for Chapter 13. His plan proposes to pay a total of $60,000 to his unsecured creditors. One of those creditors has objected to the plan, arguing that, at a minimum, unsecured creditors should receive $100,000-the amount of Ponoroff's equity in his home. Ponoroff has responded by pointing out that if his home were sold, capital gains taxes and the costs of sale would consume about 40% of his equity in the property. Therefore, Ponoroff argues that his plan satisfies section 1325(a)(4). Is he right? Of what import is section 506(a)(2)?
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ACCT3332 Intermediate Financial Accounting Assignment Help and Solution, University of Texas at Dallas - Assessment Writing Service
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