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IN RE BEARD

No. 93-3596.

45 F.3d 113 (1995)

In re Bill Brandon BEARD and Peggy Jane Beard, Debtors. M. Scott MICHEL, United States Trustee for Region 9, Appellant, v. Bill Brandon BEARD and Peggy Jane Beard, Debtors-Appellees.

United States Court of Appeals, Sixth Circuit.

Decided January 18, 1995.

Rehearing and Suggestion for Rehearing Denied April 12, 1995.

Attorney(s) appearing for the Case

Paul W. Bridenhagen, Office for U.S. Trustees, Bruce G. Forrest (briefed), Civ. Div., Appellate Staff, Sushma Soni (argued), U.S. Dept. of Justice, Civ. Div., Washington, DC, for plaintiff-appellant.

Charles W. Ewing (argued and briefed), Hilliard, OH, for defendants-appellees.

Jeffrey Mark Kellner, Worthington, OH, Bruce G. Forrest, U.S. Dept. of Justice, Washington, DC, for Frank Pees, Chapter 12 Trustee for Southern Dist. of Ohio, Eastern Div., amicus curiae.

Before: KENNEDY and BOGGS, Circuit Judges; and HILLMAN, District Judge.

Rehearing and Suggestion for Rehearing En Banc Denied April 12, 1995.

BOGGS, Circuit Judge.

This appeal stems from a Chapter 12 family-farm bankruptcy and reorganization. The district court, in confirming the plan, affirmed the bankruptcy court's decision to permit the debtors to remit payments directly to an undersecured creditor, without having to transfer the funds to that creditor through the bankruptcy trustee. The two lower courts recognized that, by...

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