IN RE PHILLIPS

Bankruptcy Nos. 280-00468, 280-00268 and 280-00594.

13 B.R. 82 (1981)

In Re Danny Carl PHILLIPS; Edward F. Toth and Diana L. Toth; Gregory M. Stark and Mira L. Stark, Debtors. Danny Carl PHILLIPS, Plaintiff, v. BENEFICIAL FINANCE COMPANY, Defendant. Edward F. TOTH and Diana L. Toth, Plaintiffs, v. NICHOLS LOAN CORPORATION, Defendant. Gregory M. STARK and Mira L. Stark, Plaintiffs, v. NICHOLS LOAN CORPORATION, Defendant.

United States Bankruptcy Court, C.D. Illinois.

July 10, 1981.


Attorney(s) appearing for the Case

Ronald Sweikar, Danville, Ill., for the Toths.

Mary G. Gorski, Champaign, Ill., for Danny Phillips.

Theodore J. Pasierb, Jr., Danville, Ill., for the Starks.

William L. Garrison, Danville, Ill., for Beneficial Finance and Nichols Loan Corp.


OPINION

LARRY LESSEN, Bankruptcy Judge.

The revised Bankruptcy Act of 1978 (P.L. 95-598, 11 U.S.C. Sec. 101 et seq.) includes several novel and controversial provisions. In these cases this Court must decide if one of these provisions may stand in the face of a challenge based on the Due Process Clause of the Fifth Amendment to the United States Constitution.

Challenged in these proceedings is 11 U.S.C. Sec. 522(f), which allows a debtor to avoid...

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