combined plan & ds (#248,6!4!12)

7/31/2019 Combined Plan & DS (#248,6!4!12)

1/22

Individual Chapter 11 (Doris Gonzalez)Combined Plan & Disclosure StatementMay 18, 2012 -1-

UnitedStatesBankruptcyCourtNorthern District of California

In re: Case No. 10-61614 CNChapter 11

DORIS GONZALEZ Date: July 26, 2012Time: 11:00 a.m.

Debtor in Possession________________________________/

COMBINED PLAN OF REORGANIZATION

AND [TENTATIVELY APPROVED] DISCLOSURE STATEMENTMay 18, 2012

INTRODUCTION

This is Debtors Combined Chapter 11 Plan of Reorganization and Disclosure Statement(the Plan). The Plan identifies each known creditor by name and describes how each claimwill be treated if the Plan is confirmed.

Part 1 contains the treatment of creditors with secured claims; Part 2 contains the

treatment of general unsecured creditors who will receive: 7% of their allowed claims in monthlypayments over thirty six (36) months. Payments to unsecured creditors will start after twenty-four months (24) and complete within sixty (60) months. Taxes and other priority claims will bepaid in full, as shown in Part 3.

Most creditors (those in impaired classes) are entitled to vote on confirmation of the Plan.Completed ballots must be received by Debtors counsel by July 12, 2012, and objections toconfirmation must be filed and served no later than July 12, 2012. The court will hold a hearingon confirmation of the Plan on July 26, 2012 at 11:00 a.m.

Attached to the Plan are exhibits containing financial information that may help you

decide how to vote and whether to object to confirmation. Exhibit 1 includes backgroundinformation regarding Debtor and the events that led to the filing of the bankruptcy petition anddescribes significant events that have occurred during this Chapter 11 case. Exhibit 2 containsan analysis of how much creditors would likely receive in Chapter 7 liquidation. Exhibit 3shows Debtors monthly income and expenses. Exhibit 4 describes the sources of income for thepayments required under the Plan.

Whether the Plan is confirmed is subject to complex legal rules that cannot be fully

Case: 10-61614 Doc# 248 Filed: 06/04/12 Entered: 06/04/12 12:15:41 Page 1 of22

7/31/2019 Combined Plan & DS (#248,6!4!12)

2/22


described here. You are strongly encouraged to read the Plan carefully and to consult anattorney to help you determine how to vote and whether to object to confirmation of the Plan.

If the Plan is confirmed, the payments promised in the Plan constitute new contractual

obligations that replace the Debtors pre-confirmation debts. Creditors may not seize theircollateral or enforce their pre-confirmation debts so long as Debtor performs all obligationsunder the Plan. If Debtor defaults in performing Plan obligations, any creditor can file a motionto have the case dismissed or converted to Chapter 7 liquidation, or enforce their non-bankruptcyrights. Debtor will be discharged from all pre-confirmation debts (with certain exceptions) ifDebtor makes all Plan payments. Enforcement of the Plan, discharge of the Debtor, andcreditors remedies, if Debtor defaults, are described in detail in Parts 5 and 6 of the Plan.

PART 1: TREATMENT OF SECURED CREDITORS

Property to be Surrendered.

Debtor will surrender the following collateral on the Effective Date of the Plan. Theconfirmation order will constitute an order for relief from stay. Any secured claim is satisfied infull through surrender of the collateral. Any deficiency claim is a general unsecured claimtreated in Part 2. These secured claims are not impaired and are not entitled to vote onconfirmation of the Plan.

Class Name of Creditor Description of Collateral

1A Bank of New York Mellon (Claim#9)

642 Cayuga Court, San Jose, California 95123(Cayuga)

1A Systems & Services Technologies,Inc. (Claim #14)

2006 Ford (Property Abandoned, Creditorhas relief from Stay)

Debtor to Strip Lien to Value of Collateral and Pay Over Time.

Debtor contends that the value of the collateral is less than the amount of the claim.Before confirmation, Debtor has obtained an order from the court determining the value of thecollateral. Debtor will pay as a secured claim the amount equal to the value of the collateral.Debtor will pay the secured claim in full with interest from the Effective Date of the Planthrough 300 equal monthly payments. Payments will be due on the 1st day of the month, startingon the Effective Date of the Plan. Any remaining amount due is a general unsecured claim

treated in Part 2.

Creditors in these classes may not repossess or dispose of their collateral so long asDebtor is not in Material Default under the Plan (defined in Part 6(b)). The Courts Guidelinesfor Valuing and Avoiding Liens in Individual Chapter 11 Cases and Chapter 13 Cases will apply.This secured claim is impaired and entitled to vote on confirmation of the Plan.

Payments to claimants in these classes may continue past the date Debtor obtains a


7/31/2019 Combined Plan & DS (#248,6!4!12)

3/22


discharge. The claimants rights against its collateral shall not be affected by the entry ofdischarge, but shall continue to be governed by the terms of this Plan.

Debtor and Creditor, Wells Fargo, have entered into a Stipulation pertaining to Creditors

rights under the Plan. The Stipulation with Wells Fargo Bank, pertaining to 4403 Dulcey Drive,San Jose, CA 95136, Dulcey property, is attached hereto as Attachment 1 and was approved bythe Court on February 27, 2012.

Class Name ofCreditor

Collateral Value InterestRate

MonthlyPayment

1B Wells FargoBank, N.A.(Claim #13)

DulceyProperty

$466,500 4.5% $2,624.40

Debtor to Strip Off Lien.

Prior to confirmation, Debtor has obtained or will obtain orders and/or stipulations fixingthe secured amount of the following creditors claims at zero. Debtor will pay nothing to thosecreditors as secured claims. Any claim of a creditor whose lien is stripped is a general unsecuredclaim treated in Part 2.

Creditors in these classes may not repossess or dispose of their collateral so long asDebtor is not in Material Default under the Plan (defined in Part 6(b)). The Courts Guidelinesfor Valuing and Avoiding Liens in Individual Chapter 11 Cases and Chapter 13 Cases will apply.These secured claims are impaired and are entitled to vote on confirmation of the Plan.

Class Name of Creditor Collateral Value

1C JP Morgan Chase Bank, N.A., 2ndMortgage (Claim #6)

2053 Radio Avenue, San Jose, CA 95125(Radio)

0

1C JP Morgan Chase Bank, N.A. 3rdMortgage (Claim #7)

Radio 0

1C BAC Home Loan Servicing, LP2nd Mortgage (Claim #16)

6047 Santa Ysabel Way, San Jose, CA95123 (Santa Ysabel)

0

1C Oak Grove Garden Homes Assoc.Inc. (Claim #4) 193 Teak Grove Court, San Jose, CA95123 (Teak) 0

1C Santa Clara County Tax Collector(Claim #17)

Cumulative property tax claim for all ofDebtors property

0


7/31/2019 Combined Plan & DS (#248,6!4!12)

4/22


Debtor to Adjust Terms and Pay Amount Due in Full Over Time.

Debtor will pay the entire amount contractually due with interest through 360 equalmonthly payments, due the 1st day of the month, starting as of the Effective Date of the Plan.

Debtor and Creditor, JP Morgan Chase, have entered into a Stipulation pertaining toCreditors rights under the Plan. The Stipulation with JP Morgan Chase, pertaining to the Radioproperty, is attached hereto as Attachment 2 and was approved by the Court on March 6, 2012.

The Creditors in this class may not repossess or dispose of its collateral so long as Debtoris not in Material Default under the Plan (defined in Part 6(b)). This secured claim is impairedand entitled to vote on confirmation of the Plan.

Payments to claimant in this class may continue past the date Debtor obtains a discharge.The claimants rights against its collateral shall not be affected by the entry of discharge, but

shall continue to be governed by the terms of this Plan.


Collateral Amount Due InterestRate

MonthlyPayment

Term

1D JP MorganChase Bank(Claim #11)

1st mortgageon RadioProperty

$650,294.52 5.25% $3,590.40 30years

Debtor to Make HAMP Payments on Residential Loan.

Debtor submitted a loan modification application under the Presidents Home AffordableModification Plan (HAMP) to The Bank of New York Mellon, as Trustee (The Bank of NewYork) for modification of its loan on her residence located at 6047 Santa Ysabel, San Jose, CA95123. If the HAMP loan modification is approved, Debtor will make payment of $2,325 permonth pursuant to the HAMP modification, which will include amounts due for principal,interest, taxes and insurance. The HAMP loan modification will bring Debtors interest ratedown to 2% over forty (40) years, and will include a balloon payment, due at the end of the term,in the amount of $198,807. It will also cure the claimed pre-petition defaults in the amount of$15,582.38.

If the loan modification is not approved, Debtor will make the regular mortgagepayments called for under the note, in the amount of $3,051.92 and pay the pre-petition arrearsin equal monthly installments over a period of 60 months, with the first payment commencingafter Debtors HAMP loan modification application is rejected (estimated monthly payments onthe arrears will be $260 per month). Debtor proposes to continue making the $3,051.92 paymentuntil Claimant has resolved the HAMP application, will continue to pay all post petition propertytaxes due on the property, timely, and maintain property and liability insurance on the property.


7/31/2019 Combined Plan & DS (#248,6!4!12)

5/22


In the event Debtor fails to make the payments proposed hereunder, Claimant shall be entitled toproceed with the remedies it is entitled to under the law, and collect and/or foreclose on anydefault under the promissory note.

The Creditor in this class may not repossess or dispose of its collateral so long as Debtoris not in Material Default under the Plan (defined in Part 6(b)). This secured claim is impairedand entitled to vote on confirmation of the Plan.


Collateral RegularMonthlyPayment

EstimatedArrears

InterestRate onArrears

MonthlyPaymenton Arrears

1E Bank of NewYork Mellon

1st mortgage on6047 SantaYsabel Way,

San Jose, CA95123

$2,325 unlessHAMP loanmod app

rejected then:$3,051.92

$15,582.38 4% $260 (ifHAMPrejected)

Debtor to Adjust Terms and Pay Creditor who has made an election pursuant to 11 USC1111(b) (Class 1F)

The first mortgage holder on the Teak Property, the Bank of New York Mellon,(BONY) , as Trustee filed a secured claim in the amount of $440,229.04. Debtor and BONYstipulated to value the property and allow a secured claim of $224,000, and an unsecured claimof $216,229.04, the amount that the claim exceeds the market value of the property. On August

15, 2011, the Court entered an Order holding the same.

This creditor has made an election under Section 1111(b) of the Bankruptcy Code.Pursuant to the election, BONY will be paid the total amount of its allowed claim, but with thepresent value of these payments equaling the allowed secured amount of the Claim. The Tablebelow computes the payments that have been agreed to by BONY and Debtor:

Interest No Monthly Required Computed Difference Total Total DifferenceRate Ofyears Payment PresentValue PV OverpaidPVBy Claim Paid OverpaidTotalBy

5.15%

30

$1221.41

$224,000

$223,817

($183) $438,600 $439,708

$1,108

Debtor will continue to timely pay all post petition property taxes due on the property,and will maintain property and liability insurance.

The Creditors in this class may not repossess or dispose of its collateral so long as Debtoris not in Material Default under the Plan (defined in Part 6(b)). This secured claim, in Class


7/31/2019 Combined Plan & DS (#248,6!4!12)

6/22


1F, is impaired and entitled to vote on confirmation of the Plan.

Payments to claimant in this class may continue past the date Debtor obtains a discharge.The claimants rights against its collateral shall not be affected by the entry of discharge, but

shall continue to be governed by the terms of this Plan.

PART 2:TREATMENT OF GENERAL UNSECURED CREDITORS

Class 2(a). Small Claims.

This class includes any creditor whose allowed claim is $200 or less, and any creditor inClass 2(b) whose allowed claim is larger than $2000 but agrees to reduce its claim to $200. Eachcreditor will receive on the Effective Date of the Plan a single payment equal to the lesser of itsallowed claim or $200. Creditors electing to reduce their claim must do so no later than the dateset for the return of ballots i.e. July 12, 2012.

Creditors in this class may not take any collection action against Debtor so long asDebtor is not in Material Default under the Plan (defined in Part 6(b)). Claimants in this classare impaired and are entitled to vote on confirmation of the Plan, unless their claims arepaid in full with interest on the Effective Date of the Plan.

Name of Creditor Amount of Claim Amount to be Paid

Department Stores NationalBank Macys (Claim #1)

$112.82 $112.82

Internal Revenue Service unsecured portion (Claim #3)

$78.57 $78.57


7/31/2019 Combined Plan & DS (#248,6!4!12)

7/22


Class 2(b). Other General Unsecured Claims.

Allowed claims of general unsecured creditors [not treated as small claims] (includingallowed claims of creditors whose executory contracts or unexpired leases are being rejected

under this Plan) shall be paid as follows:

Percent Plan. Creditors will receive7 % of their allowed claim in 36 equal monthlyinstallments, due on the 10th day of the month, starting 24 months from the Effective Date of thePlan or after all priority and administrative claims have been paid, whichever is earlier.

Name of Creditor Amount ofClaim

Disputed Amount to bePaid

Monthly

Oak Grove Garden HomesAssociation (Teak) (Claim #4)

$8,821.75 No $618 $17

Richard Guggenheim (Claim #5) $21,598.16 No $1,512 $42

JP Morgan (2nd mortgage holderon Radio Property) (Claim #6)

$118,069 No $8,265 $230

JP Morgan (3rd mortgage holderon Radio Property) (Claim #7)

$47,568 No $3,330 $92

Maria Rivera (Claim #8,18) $103,898 No $7,273 $202

Wells Fargo Bank, N.A. (1st onDulcey Property-unsec. portion)(Claim #13)

$28,602 No $2,002 $56

AT&T Services (Claim #15) $317.97 No $22 $1

BAC Home Loan Servicing (2n mortgage holder on SantaYsabel Property) (Claim #16)

$71,258 No $4,988 $139

Sylvia Vadil (Claim #19) $3,000 No $210 $6

Christina Pina (Claim #21) $7,500 No $525 $15

Martha Perez (Claim #22) $11,000 No $770 $21

Esther Kattan (Claim #23) $3,000 No $210 $6

Totals $424,633 $29,724 $826


7/31/2019 Combined Plan & DS (#248,6!4!12)

8/22


PART 3: TREATMENT OF PRIORITY AND ADMINISTRATIVE CLAIMS

(a) Professional Fees.

Debtor will pay the following professional fees in full on the Effective Date, or uponapproval by the court, whichever is later.

Name and Role of Professional Estimated Amount

N/A

The following professionals have agreed to accept partial payment on the Effective Dateand the remainder over time as follows. Payments will be made monthly, due on the 20th day ofthe month, starting thirty days after the Effective Date or upon approval by the court, whicheveris later.

Name and Role of Professional EstimatedAmount

PaymentAmount

Number ofPayments

Javed I. Ellahie, Esq.Bankruptcy Counsel for Debtor

$50,000 $25,000 uponEffective Date,Balance @$500/month

50

Professionals may not take collection action against Debtor so long as Debtor is not inMaterial Default under the Plan (defined in Part 6(b)). Estate professionals are not entitled to

vote on confirmation of the Plan.

(b) Other Administrative Claims.

Debtor will pay other allowed claims entitled to priority under section 503(b) in full onthe Effective Date; except expenses incurred in the ordinary course of Debtors business orfinancial affairs, which shall be paid when normally due and payable (these creditors are notlisted below). All fees payable to the United States Trustee as of confirmation will be paid onthe Effective Date; post-confirmation fees to the United States Trustee will be paid when due.

Administrative Creditors may not take any collection action against Debtor so long as

Debtor is not in Material Default under the Plan (defined in Part 6(b)). Administrativeclaimants are not entitled to vote on confirmation of the Plan.

Name of Administrative Creditor Estimated Amount of Claim

Cal. Dept. of Social Services (Claim #20) $3,000


7/31/2019 Combined Plan & DS (#248,6!4!12)

9/22


(c) Tax Claims.

Debtor will pay allowed claims entitled to priority under section 507(a)(8) in full overtime with interest (at the non-bankruptcy statutory interest rate) upon the Effective Date of the

Plan . To the extent amounts owed are determined to be other than as shown below, appropriateadjustments will be made in the number of payments.

Priority tax creditors may not take any collection action against Debtor so long as Debtoris not in Material Default under the Plan (defined in Part 6(b)). Priority tax claimants are notentitled to vote on confirmation of the Plan.

Name of Creditor EstimatedAmount ofClaim

StatutoryInterest Rate

PaymentAmount

Number ofPayments

Internal Revenue Service(Claim #3) $1,603.03 4% $1,603.03 1

PART 4: EXECUTORY CONTRACTS AND UNEXPIRED LEASES

(a)Executory Contracts/Unexpired Leases Assumed.Debtor assumes the following executory contracts and/or unexpired leases upon confirmation

of this Plan and will perform all pre-confirmation and post-confirmation obligations thereunder.Post-confirmation obligations will be paid as they come due. Pre-confirmation arrears will bepaid [select one] [in full on the Effective Date] in [number] equal [monthly/quarterly]

installments beginning on the first day of [month & year].

Name ofCounter-Party

Description ofContract/Lease

EstimatedTotal CureAmount

Installment Amount Number ofInstallments

None

(b)Executory Contracts/Unexpired Leases Rejected.Debtor rejects the following executory contracts and/or unexpired leases and surrenders any

interest in the affected property, and allows the affected creditor to obtain possession and disposeof its property, without further order of the court. Claims arising from rejection of executorycontracts have been included in Class 2 (Not Applicable).

Name of Counter-Party Description of Contract/Lease

None


7/31/2019 Combined Plan & DS (#248,6!4!12)

10/22


(c) Executory contracts and unexpired leases not specifically assumed or rejected above will bedeemed rejected.

PART 5: DISCHARGE AND OTHER EFFECTS OF CONFIRMATION

(a) Discharge. Debtor shall not receive a discharge of debts until Debtor makes all paymentsdue under the Plan or the court grants a hardship discharge.

(b) Vesting of Property. On the Effective Date, all property of the estate and interests of theDebtor will vest in the reorganized Debtor pursuant to 1141(b) of the Bankruptcy Code free andclear of all claims and interests except as provided in this Plan, subject to revesting uponconversion to Chapter 7 as provided in Part 6(e) below.

(c) Plan Creates New Obligations. Except as provided in Part 6(d), the obligations to creditors

that Debtor undertakes in the confirmed Plan replace those obligations to creditors that existedprior to the Effective Date of the Plan. Debtors obligations under the confirmed Plan constitutebinding contractual promises that, if not satisfied through performance of the Plan, create a basisfor an action for breach of contract under California law. To the extent a creditor retains a lienunder the Plan, that creditor retains all rights provided by such lien under applicable non-Bankruptcy law.

PART 6:REMEDIES IF DEBTOR DEFAULTS IN PERFORMING THE PLAN

(a) Creditor Action Restrained. The confirmed Plan is binding on every creditor whose claimsare provided for in the Plan. Therefore, even though the automatic stay terminates on theEffective Date with respect to secured claims, no creditor may take any action to enforce eitherthe pre-confirmation obligation or the obligation due under the Plan, so long as Debtor is not indefault under the Plan, except as provided in Part 6(e) below.

(b) Obligations to Each Class Separate. Debtors obligations under the Plan are separate withrespect to each class of creditors. Default in performance of an obligation due to members ofone class shall not by itself constitute a default with respect to members of other classes. Forpurposes of this Part 6, the holders of all administrative claims shall be considered to be a singleclass, the holders of all priority claims shall be considered to be a single class, and each non-debtor party to an assumed executory contract or lease shall be considered to be a separate class.

(c) Material Default Defined. If Debtor fails to make any payment, or to perform any otherobligation required under the Plan, for more than 10 days after the time specified in the Plan forsuch payment or other performance, any member of a class affected by the default may serveupon Debtor and Debtors attorney (if any) a written notice of Debtors default. If Debtor failswithin 30 days after the date of service of the notice of default either: (i) to cure the default; (ii)to obtain from the court an extension of time to cure the default; or (iii) to obtain from the court adetermination that no default occurred, then Debtor is in Material Default under the Plan to allthe members of the affected class.


7/31/2019 Combined Plan & DS (#248,6!4!12)

11/22


(d) Remedies Upon Material Default. Upon Material Default, any member of a class affected bythe default: (i) may file and serve a motion to dismiss the case or to convert the case to Chapter7; or (ii) without further order of the court has relief from stay to the extent necessary, and may

pursue its lawful remedies to enforce and collect Debtors pre-confirmation obligations.

(e) Claims not Affected by Plan. Upon confirmation of the Plan, and subject to Part 5(c), anycreditor whose claims are left unimpaired under the Plan may, notwithstanding paragraphs (a),(b), (c), and (d) above, immediately exercise all of its contractual, legal, and equitable rights,except rights based on default of the type that need not be cured under section 1124(2)(A) and(D).

(f) Effect of Conversion to Chapter 7. If the case is at any time converted to one under Chapter7, property of the Debtor shall vest in the Chapter 7 bankruptcy estate to the same extentprovided for in section 348(f) of the Bankruptcy Code upon the conversion of a case from

Chapter 13 to Chapter 7.

(g) Retention of Jurisdiction. The bankruptcy court may exercise jurisdiction over proceedingsconcerning: (i) whether Debtor is in Material Default of any Plan obligation; (ii) whether thetime for performing any Plan obligation should be extended; (iii) adversary proceedings andcontested matters pending as of the Effective Date or specifically contemplated in this Plan to befiled in this court (see Part 7(f)); (iv) whether the case should be dismissed or converted to oneunder Chapter 7; (v) any objections to claims; (vi) compromises of controversies under Fed. R.Bankr. Pro. 9019; (vii) compensation of professionals; and (viii) other questions regarding theinterpretation and enforcement of the Plan.

PART 7: GENERAL PROVISIONS

(a) Effective Date of Plan. The Effective Date of the Plan is the fifteenth day following the dateof the entry of the order of confirmation, if no notice of appeal from that order has been filed. Ifa notice of appeal has been filed, Debtor may waive the finality requirement and put the Plan intoeffect, unless the order confirming the Plan has been stayed. If a stay of the confirmation orderhas been issued, the Effective Date will be the first day after that date on which no stay of theconfirmation order is in effect, provided that the confirmation order has not been vacated.

(b) Disputed Claim Reserve. Debtor will create a reserve for disputed claims. Each time Debtormakes a distribution to the holders of allowed claims, Debtor will place into a reserve the amountthat would have been distributed to the holders of disputed claims if such claims had beenallowed in the full amount claimed. If a disputed claim becomes an allowed claim, Debtor shallimmediately distribute to the claimant from the reserve an amount equal to all distributions dueto date under the Plan calculated using the amount of the allowed claim. Any funds no longerneeded in reserve shall be returned to Debtor.

(c) Cramdown. Pursuant to section 1129(b) of the Bankruptcy Code, Debtor reserves the rightto seek confirmation of the Plan despite the rejection of the Plan by one or more classes of


7/31/2019 Combined Plan & DS (#248,6!4!12)

12/22

7/31/2019 Combined Plan & DS (#248,6!4!12)

13/22


Attorney Certification

I, Javed Ellahie, am legal counsel for the Debtor(s) in the above-captioned case andhereby certify the following: (i) the foregoing Plan is a true and correct copy of the Individual

Chapter 11 Combined Plan and Disclosure Statement promulgated by the Northern District ofCalifornia, San Francisco Division, on December 7, 2011 (the Standard-Form Plan); and (ii)except as specified below, there have been no alterations or modifications to any provision of theStandard-Form Plan.

The following provisions of the Standard-Form Plan have been altered or otherwisemodified.

1. On page 1, the second paragraph of the section entitled Introduction was modified toread as follows: Part 1 contains the treatment of creditors with secured claims; Part 2contains the treatment of general unsecured creditors who will receive: 7% of their

allowed claims in monthly payments over thirty six (36) months. Payments to unsecuredcreditors will start after twenty-four months (24) and complete within sixty (60) months.Taxes and other priority claims will be paid in full, as shown in Part 3.

2. On page 2, in the first paragraph of the section entitled Debtor to Strip Lien to Valueof Collateral and Pay Over Time, the words on the Effective Date of the Plan wereadded.

3. On page 3, the following paragraph was added after the first new paragraph:Debtor and Creditor have entered into a Stipulation pertaining to Creditors

rights under the Plan. The Stipulation with Wells Fargo Bank, pertaining to 4403 DulceyDrive, San Jose, CA 95136, Dulcey property, is attached hereto as Attachment 1 andwas approved by the Court on February 27, 2012.

4. On page 3, in the section entitled Debtor to Strip off Lien, the first sentence of thefirst paragraph was modified to read, Prior to confirmation, Debtor has obtained or willobtain orders and/or stipulations fixing the secured amount of the following creditorsclaims at zero.

5. On page 4, in the section entitled Debtor to Adjust Terms and Pay Amount Due inFull Over Time, the words, as of the Effective Date of the Plan were added to thefirst paragraph.

6. On page 4, in the section entitled Debtor to Adjust Terms and Pay Amount Due inFull Over Time, the following paragraph was added after the first paragraph:

Debtor and Creditor, JP Morgan Chase, have entered into a Stipulation pertaining toCreditors rights under the Plan. The Stipulation with JP Morgan Chase, pertaining to the Radioproperty, is attached hereto as Attachment 2 and was approved by the Court on March 6, 2012.


7/31/2019 Combined Plan & DS (#248,6!4!12)

14/22


7. On page 4, a section entitled Debtor to Make HAMP Payments on Residential Loanwas added.

8. On page 5, a section entitled Debtor to Adjust Terms and Pay Creditor who hasmade 11 USC 1111(b) election (Class 1F) was added.

9. On page 8, section (c) Tax Claims was edited to read, Debtor will pay allowed claimsentitled to priority under section 507(a)(8) in full over time with interest (at the non-bankruptcy statutory interest rate) upon the Effective Date of the Plan and the followinglanguage was deleted: payments in accordance with section 511 of the BankruptcyCode. Payments will be made [monthly/quarterly], due on the [number] day of the[month/quarter], starting [month & year].

10.The following attachments were added:a. Attachment 1 Stipulation with Wells Fargo on Dulcey Avenue property.b. Attachment 2 Stipulation with JP Morgan Chase re Radio Ave propertyc. Attachment 3 Spreadsheet based on Monthly Operating Report (March 2012)

which is the source of data for Exhibit 4 (Feasibility Analysis).

I declare that the foregoing is true and correct. Executed this 18th day of May 2012.

/s/ Javed EllahieAttorney for Debtor(s)


7/31/2019 Combined Plan & DS (#248,6!4!12)

15/22


Exhibit 1 - Events That Led To Bankruptcy

This Chapter 11 petition was filed on November 8, 2010 at a time when Debtor did nothave full occupancy of Emmanuel Care Homes and was being sued for $20,422.63 in an

employment law matter with a pending motion for attorneys fees against her in the amount of$83,475.50. She was also behind on her mortgage payments on all of her five properties. Debtordid not have sufficient income or resources to cover her debts, all of which led to her filing thisChapter 11 petition.

Debtor operates two care home facilities called Emmanuel Care Home I (ECH I),located at 2053 Radio Avenue, San Jose, CA 95125 (Radio Property), and Emmanuel CareHome II (ECH II and collectively ECH), located at 6047 Santa Ysabel Way, San Jose, CA95123 (Santa Ysabel Property). ECH I has been in business for ten (10) years, while ECH IIhas been in business for only three years. ECH is not a health care business within the meaningof 11 U.S.C. 101. Rather, ECH I and II are Level 3 facilities that provide room and board for

high functioning mentally disabled individuals, ages ranging from 18-59 years of age. It does notprovide health care of any kind, as there are no nurses or doctors on staff. However, staffmembers do transport patients to their medical appointments and remind them to take theirmedication. They also assist in daily activities such as cleaning.

ECH is licensed by the California Department of Social Services, Care LicensingDivision, CCLD Regional Office which conducts annual inspections. Pursuant to theDepartments licensing requirements, Debtor is required to maintain additional properties as partof her business in order to have a place to move the patients in case of an emergency. The Debtormaintained the properties located at 4403 Dulcey Drive, San Jose, CA 95136 (DulceyProperty) and 642 Cayuga Court, San Jose, CA 95123 (Cayuga Property) and at the time offiling, she had hoped to continue maintaining these premises through her Chapter 11reorganization. Debtors income, however, is insufficient to service the debt on all the realproperties and her Plan now proposes to allow the Cayuga property to be foreclosed upon.

ECH is also monitored annually by a service coordinator and by four advocacy servicesincluding the Area Developmental Disabilities Board, Protection and Advocacy, Office ofClients Rights Advocacy, and Mental Health Advocacy Project. ECH is also inspected quarterlyby San Andreas Regional Center (SARC) who refers clients to ECH and monitors food, staff,day programs, the level of care, and home stability.

ECH I, provides room and board for six (6) individuals, and was at full occupancy untilone of the patients passed away. ECH II was vacant at the time Debtor filed her Chapter 11petition but following the Chapter 11 filing, Debtor has received new patients at this facility.Debtor currently has a total of five (5) patients at both facilities.

Since her Chapter 11 bankruptcy filing, Debtor has reduced business costs by reducinggardening expenses, lowering utility bills, and by lowering food costs. ECH currently employsfour (4) staff members, not including Debtor.


7/31/2019 Combined Plan & DS (#248,6!4!12)

16/22


The business provides the sole source of Debtors income. Debtor has withdrawnminimal amounts for personal expenses, averaging about $2,000 per month. She lives at one ofthe properties, Santa Ysabel, (ECH II), which is also used as a patient facility. This allows her tobe on call around the clock for the benefit of these patients.

Since the Chapter 11 bankruptcy filing, there have been significant events affecting nearlyevery property.

C. Radio Property: The Radio Property (the ECH I facility) is encumbered by threemortgage liens. JP Morgan Chase Bank, N.A. (Chase) holds the second andthird lien in the amounts of $118,068.75 and $47,568.38 respectively. Debtor fileda Motion to Value and Avoid these two liens and on August 15, 2011, the Courtentered an Order valuing both liens at zero. The Order further provides that uponthe entry of Debtors discharge these liens shall be null and void and shall ceaseto act as an encumbrance against the property.

D. Santa Ysabel Property. The Santa Ysabel property (the ECH II facility) isencumbered by two liens. This property is also the Debtors residence and Debtorhas applied for a loan modification with the first mortgage lender, The Bank ofNew York Mellon (BONY) pursuant to the guidelines of President ObamasMaking Home Affordable Program (HAMP). Debtors loan modificationapplication is pending. Her monthly payment under HAMP for principal, interest,property taxes and insurance are estimated at $2,325 per month.

The second lender on Debtors residence is BAC Home Loans Servicing, LP(BAC). Debtor filed a Motion to Value BACs security interest on the claimedamount of $71,258.23. On September 27, 2011, the Court entered an Ordervaluing BACs lien at zero. The Order further provides that upon the entry ofDebtors discharge this lien shall be null and void and shall cease to act as anencumbrance against the property.

E. The Dulcey Property: The Dulcey Property is encumbered by a loan with WellsFargo Bank, N.A. (Wells Fargo) in the claimed amount of $495,102.20. Debtorfiled a Motion to Value Wells Fargos interest. On September 27, 2011, the Courtentered an Order to value Wells Fargos secured interest at $466,500.

F. The Teak Property: The Teak Property is encumbered by a loan with BONY inthe amount of $440,229.04. Debtor filed a Motion Valuing Debtors Property andto Determine Security Interest. Debtor and the Bank of New York Mellonstipulated to set the value of the Teak Property at $224,000 and the Court hasentered an Order valuing the property at $224,000. BONYs claim is nowbifurcated into a secured portion in the amount of $224,000 and an unsecuredportion of $216,229.04.


7/31/2019 Combined Plan & DS (#248,6!4!12)

17/22


BONY exercised its rights under 11 USC 1111(b) and Debtors Plan proposes topay its claim in full over 30 years. The present value of the payments, however,will not exceed the value of the secured portion of its claim.

G.

The Cayuga Property. As discussed above Debtor will give up this property andthe Mortgage Lender will be granted Relief from Stay to foreclose upon theproperty.

Highlight of Changes in the New Plan.

An Amended Disclosure Statement filed by the Debtor on January 14, 2012 wasapproved by the Court and a Confirmation Hearing was held on the Plan dated November 7,2011 at which creditors cast their ballot on the Plan. At the hearing on confirmation the Courtdirected that this newly developed combined form of Disclosure Statement and Plan be used

instead of the format previously used, as this form presents a clearer picture for the Creditors.

The Plan contained in this document is essentially the same as the November 7, 2011except that:

1. The Stipulations entered into between Debtor and the 1st Mortgage Holders onthe Dulcey and Radio Avenue property regarding payment to these Mortgageholders are attached with this Plan;

2. The Debtor will give up the Cayuga property and the Plan grants Relief fromStay to the Lender so that it can foreclose on the Property; and

3. Payments to unsecured creditors will now begin sooner, i.e. 24 months from theEffective Date, rather than the 48 months contemplated in the November 7 th Plan.


7/31/2019 Combined Plan & DS (#248,6!4!12)

18/22


Exhibit 2 - What Creditors Would Receive if the Case Were Converted to a Chapter 7

Real Property #1: 6047 Santa Ysabel Way, San Jose, CA 95123

Fair MarketValue

Liens Cost of Sale ResultingIncome Tax

Amt ofExemption

NetProceeds

$665,440 1st

$665,340 $42,978 0 0 0

2nd $71,258

Real Property #2: 4403 Dulcey Drive, San Jose, CA 95136

Fair MarketValue


Amt ofExemption

NetProceeds

$466,500 1st $495,102 $37,320 0 0 0

Real Property #3: 193 Teak Grove Court, San Jose, CA 95125

Fair MarketValue


Amt ofExemption

NetProceeds

$224,000 1st $440,229 $16,693 0 0 0

Real Property #4: 2053 Radio Avenue, San Jose, CA 95125

Fair MarketValue


Amt ofExemption

NetProceeds

$625,000 1

st

$650,295 $50,000 unknown 0 02nd

$118,069

3rd $47,569

Real Property #5: 642 Cayuga Court, San Jose, CA 95123

Fair MarketValue


Amt ofExemption

NetProceeds

$525,000 1st

$540,891 $42,000 0 0 0

Personal Property:

Description LiquidationValue

SecuredClaim

Amt ofExemption

NetProceeds

Cash $53,604 $18,350 $35,254

Automobile #2: 2007 ToyotaSienna

$4,000 $4,000 0


7/31/2019 Combined Plan & DS (#248,6!4!12)

19/22


Automobile #5: 2002Mercedes Benz ML320

$6,000 $6,000 0

Household Furnishings $2,000 $2,000 0

Jewelry $1,000 $1,000 0

Equipment $1,700 $1,700 0

Other Personal Property $6,965 $6,965 0

TOTAL

Net Proceeds of Real Property and Personal Property

Recovery from Preferences / Fraudulent Conveyances [ADD]

Chapter 7 Administrative Claims [SUBTRACT]

Chapter 11 Administrative Claims + Atty Fees [SUBTRACT] ($53,000)

Priority Claims [SUBTRACT] ($1,603)

Chapter 7 Trustee Fees [SUBTRACT]

Chapter 7 Trustees Professionals [SUBTRACT]

NET FUNDS AVAILABLE FOR DISTRIBUTION TO UNSECUREDCREDITORS

0

Estimated Amount of Unsecured Claims $424,633

Percent Distribution to Unsecured Creditors Under Proposed Plan 7%

Percent Distribution to Unsecured Creditors Under Liquidation Analysis 0%


7/31/2019 Combined Plan & DS (#248,6!4!12)

20/22


Exhibit 3 - Income and Expenses

Wages: Not Applicable Debtor is self - employed

Husband

Job #1

Husband

Job #2

Wife

Job #1

Wife

Job #2

Gross Wages (Avg draw) $1,593

Payroll Taxes [SUBTRACT]

401k / IRA / PSP [SUBTRACT]

Health Care [SUBTRACT]

Net Income

TOTAL NET INCOME FROM WAGES $1,593

Real Property #1 Income: 193 Teak Grove Court, San Jose, CA 95123

RentalIncome

Mortgage Insurance PropertyTaxes

OtherExpenses

Net Income

$2,100 1st

$1,221 $75 $303 $50 $451

Real Property #2 Income: 4403, Dulcey Drive, San Jose, Ca 95123

RentalIncome

Mortgage Insurance PropertyTaxes

OtherExpenses

Net Income

$2,300 1st $2,624 $75 $402 $50 ($850)

Other Income:

Amount

Net Business Income (see Attachment 3 and MOR for March 2012) $13,930

Other Income (Draw plus Rental) $1,194

TOTAL OTHER INCOME $15,124

Expenses: (Monthly Operating Reports Expenses already deducted)

Amount

Shelter Expenses (rent/mortgage, insurance, taxes, utilities)-Tax, Ins., Repairsfor Santa Ysabel and Radio (Business Properties)

$1,602


7/31/2019 Combined Plan & DS (#248,6!4!12)

21/22


Household Expenses (food) $550

Transportation Expenses (car payments, insurance, fuel) $400

Personal Expenses (e.g. recreation, clothing, laundry, medical) $750

Alimony / Child Support

Other Expenses (Cable, Cell phone, charity) $570

TOTAL EXPENSES $3,872

TOTAL NET INCOME FROM WAGES, REAL PROPERTY, ANDOTHER INCOME

$11,252


7/31/2019 Combined Plan & DS (#248,6!4!12)

22/22

Individual Chapter 11 (Doris Gonzalez)Combined Plan & Disclosure StatementM 18 2012 22

Exhibit 4 - Feasibility Analysis

Can the Debtor Make the Effective Day Payments?

Amount

Total Cash on Hand (From Monthly Operating Report) $53,604

Effective Day Payments [SUBTRACT]

Unclassified Claims

Administrative Expense Claims ($28,000)

Priority Claims ($1,603)

U.S. Trustee Fees ($750)

NET CASH AFTER EFFECTIVE DAY PAYMENTS ($23,251)

Can the Debtor Make the Plan Payments?

Year 1($)

Year 2($)

Year 3($)

Year 4($)

Year 5($)

Beginning Cash 23,251 23,431 23,611 16,791 9,971

Net Income From AllSources (Exhibit 3)

135,024 135,024 135,024 135,024 135,024

NET CASH 158,275 158,455 158,635 151,815 144,995

507(a) PaymentsClass 1 Payments -125,844 -125,844 -125,844 -125,844 -125,844

Class 2 Payments 0 0 -10,000 -10,000 -9724

Class 3 Payments -6000 -6000 -6000 -6000 -1000

U.S. Trustee Fees -3000 -3000 0 0 0

TOTAL PLANPAYMENTS

-134,844 -134,844 -141,844 -141,844 -136,568

NET CASH AFTER

PLAN PAYMENTS

23,431 23,611 16,791 9,971 8,427

R:\BKNEWCASES\Chapter 11\Gonzalez, Doris Liseth\15 - Plan\New Plan 4-2012\New combined Plan 5-18-12 rev1.doc

combined plan & ds (#248,6!4!12)

Documents