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IN RE OLSON

Bankruptcy No. 89-80979.

102 B.R. 147 (1989)

In re Gerald L. OLSON and Merlene L. Olson, Debtors. The TRAVELERS INSURANCE COMPANY, Petitioner-Creditor v. Gerald L. OLSON and Merlene L. Olson, Respondents-Debtors.

United States Bankruptcy Court, C.D. Illinois.

July 26, 1989.

Attorney(s) appearing for the Case

Barry M. Barash, Galesburg, Ill., for debtors.

Reynolds M. Everett, Jr., Galva, Ill., Chapter 12 trustee.

Andrew W. Covey, Peoria, Ill., for Travelers Ins. Co.

OPINION

WILLIAM V. ALTENBERGER, Bankruptcy Judge.

The Debtors filed a Chapter 11 proceeding in October of 1985 and filed their first amended plan of reorganization in July of 1986. Subsequently, they filed a motion to convert the Chapter 11 proceedings to a Chapter 12 proceedings, which motion was denied in January of 1987. Because the first amended plan failed to comply with the absolute priority rule found in Section 1129 of the Bankruptcy Code, 11 U.S...

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