1

THE LANE LAW FIRM, PLLC

Robert C. Lane

State Bar No. 24046263

notifications@lanelaw.com

6200 Savoy, Suite 1150

Houston, Texas 77036

(713) 595-8200 Voice

(713) 595-8201 Facsimile

COUNSEL FOR DEBTOR

IN THE UNITED STATES BANKRUPTCY COURT

 FOR THE NORTHERN DISTRICT OF TEXAS

 FORT WORTH DIVISION

IN RE: §

WATAUGA FAMILY DENTISTRY, PLLC §

DEBTOR § BANKRUPTCY CASE NO. 23-42515

DEBTOR’S PLAN OF REORGANIZATION PURSUANT TO SECTION 1190 OF THE 

BANKRUPTCY CODE

TO: ALL PARTIES-IN-INTEREST, THEIR ATTORNEYS OF RECORD AND TO THE 

HONORABLE UNITED STATES BANKRUPTCY JUDGE:

ARTICLE I

INTRODUCTION

Identity of the Debtor

Watauga Family Dentistry, PLLC (“Debtor”) filed its voluntary petition under Chapter 11 

of the Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas, 

Fort Worth Division on August 28, 2023. This Plan proposes to pay creditors from future income 

by continuing operations and reorganizing its current debts.

The Plan also states whether each class of claims or equity interest holders is impaired or 

unimpaired. After such plan has been filed, it must be accepted by holders of claims against, or 

interests in, the debtor, or be found by the Court to be fair and equitable with respect to each class 

of claims or interests.

Explanation of Chapter 11

Chapter 11 is the primary reorganization chapter under the Code. Debtor is a small 

business and has decided to proceed under Subchapter V – Business Debtor Reorganization 

(“Subchapter V”). Under Subchapter V, the Debtor is permitted to reorganize its business for the 

benefit of its creditors, equity interest holders, and itself. As required by the Code, the Plan places 

claims in various classes and describes the treatment each class will receive. After such Plan has 

been filed, it must be accepted by claimholders and equity interest holders or determined by the 

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Court to be fair and equitable with respect to each class of claims or interests that is impaired and 

has not accepted the Plan.

Explanation of the Confirmation Process

Acceptance of the plan by the Creditors and Equity Interest Holders is important. In order 

for the plan to be accepted by each class of claims, the creditors that hold at least two thirds (2/3) 

in amount and more than one-half (1/2) in number of the allowed claims actually voting on the 

plan in such class must vote for the plan, and the equity interest holders that hold at least twothirds (2/3) in amount of the allowed interests actually voting on the plan in such class must vote 

for the plan. As set forth above, a Subchapter V Chapter 11 does not require that each holder of a 

claim against, or interest in, the debtor vote in favor of the plan in order to be confirmed by the 

Court.

Confirmation of the plan discharges the Debtor from all of its pre-confirmation debts and 

liabilities except as expressly provided for in the plan and Section 1141(d) of the Code. 

Confirmation makes the plan binding upon the Debtors and all claimants, equity interest holders 

and other parties-in-interest, regardless of whether or not they have accepted the plan.

Voting Procedures

Unimpaired Class. Claimants in Class 1, 2 and 5 are not impaired under the Plan. Such Classes 

are deemed to have accepted the Plan.

Impaired Class. The Class 3 and 4 Claimants are impaired as defined by Section 1124 of the 

Code. The Debtor is seeking the acceptance of the Plan by Claimants in Class 3 and 4. Each 

holder of an Allowed Claim in Class 3 and 4 may vote on the Plan by completing, dating, and 

signing the ballot sent to the holder and filing the ballot as set forth below.

For all Classes, the ballot must be returned to Robert “Chip” Lane, The Lane Law Firm, 

PLLC, 6200 Savoy Drive, Suite 1150, Houston, Texas 77036 or via email at bk@lanelaw.com. 

In order to be counted, ballots must be RECEIVED no later than at the time and on the date stated 

on the ballot.

Summary of Plan

Debtor’s Plan of Reorganization provides for the continued operations of the Debtor in 

order to make payments to its creditors as set forth in this Plan. Debtor seeks to confirm a 

consensual plan of reorganization so that all payments to creditors required under the Plan will be 

made directly by the Debtor to its creditors. If Debtor must seek confirmation of this Plan pursuant 

to § 1191(b), then the Subchapter V Trustee will be the disbursing agent. 

Best Interests of Creditor Test

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Section 1129(a)(7) of the Code requires that each impaired class of claims or interests

accept the Plan orreceive orretain under the Plan on account ofsuch claim orinterest, property

of a value as of the Effective Date of the Plan, that is not lessthan the amount thatsuch holder

would so receive orretainiftheDebtor wasliquidated underChapter 7oftheBankruptcy Code.

If Section 1111(b)(2) of the Bankruptcy Code applies to the claims ofsuch class, each holder

of a claim ofsuch classwill receive orretain under the Plan, on account ofsuch claim, property

of a value, as of the Effective Date of the Plan, that is not less than the value of such holder's

interest in the estate's interest in the property thatsecures such claims. In order for thePlan to

be confirmed, theBankruptcy Court must determine that the Plan isin the best interests of the

Debtor's creditors. Accordingly, the proposed Plan must provide the Debtor's creditors with 

more than they would receive in a Chapter 7 liquidation. It is anticipated that in a Chapter 7 

liquidation, the Debtor's creditors, other than the secured creditors, would receive nothing. 

Accordingly, since the Plan proposes a substantial dividend to all creditors, such creditors are

receiving more than they would receive in a Chapter 7 liquidation. Accordingly, the Plan 

satisfies the requirements of Section 1129(a)(7).

ARTICLE II

DEFINITIONS

Unless the context otherwise requires, the following capitalized terms shall have the 

meanings indicated when used in this Plan which meaning shall be equally applicable to both

the singular and plural forms ofsuch terms. Any term in this Plan that is not defined herein but

that is used in title 11, United States Code ("Code") shall have the meaning assigned to such

term in the Code.

1. "Administrative Claim" shall mean those Claims entitled to priority under 

the provisions of Section 507 of the Code, pursuant to a claimed and allowed administrative

expense priority under Section 503(b) of the Code.

2. "Allowed Claim" as to all Classes, hereinafter specified, shall mean a Claim

against Debtor (a) for which a Proof of Claim has been timely filed with the Court by the Bar

Date, or, with leave of the Court and without objection by any party-in-interest, late-filed and

as to which neither the Debtor nor any party-in-interest files an objection or as to which the

Claim is allowed by Final Order of theCourt, or(b)scheduled in the list of creditors, as may be

amended, prepared and filed with theCourt pursuant toRule 1007(b) and not listed as disputed,

contingent or unliquidated asto amount, asto which no objection to the allowance thereof has

been interposed through closing of this case, or as to which any such objection has been

determined by an order or judgment which is no longer subject to appeal or certiorari 

proceeding and as to which no appeal or certiorari proceeding is pending. This category

includes allClaims deemed unsecured pursuantto§506(a)of the Code. When "Allowed Claim" 

is used in the context of a Secured Claim, the provisions of

§506(b) of the Code shall also apply.

3. "Allowed Secured Claim" shall mean an Allowed Claim secured by a lien,

security interest, or other encumbrance on the properties owned by the Debtor, which lien,

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security interest, or other encumbrance has been properly perfected as required by law, to the

extent of the value of the property encumbered thereby. That portion ofsuch Claim exceeding

the value of the security held therefor shall be an Unsecured Claim, as defined below and

determined pursuant to 11 U.S.C.

§506(a).

4. "Allowed Unsecured Claim" shall mean an unsecured Claim against Debtor

(a)for which a Proof of Claim has been timely filed with the Court by the Bar Date, or, with

leave of the Court and without objection by any party-in-interest, late-filed and as to which

neither the Debtor nor any party-in-interestfiles an objection or astowhich theClaim is allowed

byFinal Order ofthe Court, or(b)scheduled inthe list of creditors, asmaybe amended, prepared

and filed with the Court pursuant to Rule 1007(b) and not listed as disputed, contingent or

unliquidated as to amount, as to which no objection to the allowance thereof has been

interposed through closing of this case, or as to which anysuch objection has been determined

by an order or judgment which is no longer subject to appeal or certiorari proceeding and asto

which noappeal or certiorari proceeding ispending. This category includes all Claims deemed 

unsecured pursuant to §506(a) of the Code.

5. "Bar Date" shall mean the date fixed by the Court as the last date for filing all 

Claims in this case other than Administrative and Priority Claims or Rejection Claims.

6. "Case" shall mean this Chapter 11 case.

7. "Claim" shall mean any right to payment from the Debtor as of the date of

entry of the Order Confirming Plan whether or not such right is reduced to judgment, 

liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal,

equitable,secured or unsecured or can be asserted bywayofset-off. Claim includes any right or

cause of action based on a pre-petition monetary or non-monetary default.

8. "Claimant" shall mean the holder of a Claim.

9. "Class" shall refer to a category of holders of Claims or interests which are 

"substantially similar" as provided for in Section 1122 of theCode.

10. "Code" shall mean the United States Bankruptcy Code, being title 11 of the

United States Code, as enacted in 1978 and thereafter amended.

11. "Confirmation" or "Confirmation of this Plan" shall mean entry by the 

Court of an Order confirming this Plan at or after a hearing pursuant to Section 1129 of the

Code.

12. "Confirmation Date" shall mean the date on which the Court enters an Order 

confirming this Plan.

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13. "Court" shall mean the United States Bankruptcy Court for the Northern

District of Texas, Fort Worth Division, presiding over this Chapter 11 reorganization case, or

any successor court of competent jurisdiction.

14. "Creditor" shall mean any person having a Claim against Debtor.

15. "Debt"shallmeananyobligation ofDebtor, alone, andanyobligation ofDebtor

and any other Person, to any Entity.

16. "Debtor" shall mean Watauga Family Dentistry, PLLC.

17. "Disbursing Agent" shall mean the Reorganized Debtor or in the event of a 

confirmation under 11 U.S.C. §1191(b) shall mean the Sub-Chapter V Trustee or other entity 

or person as the Court mandates.

18. "Effective Date" The effective date of this Plan is 30 days after the 

“Confirmation Date”. 

19. "Entity" shall include Person, estate trust, governmental unit and the United

States Trustee.

20. "Equity Interest Holders" shall mean holders of the equity interests in the

Debtors.

21. "Order Confirming Plan" shall mean the Order oftheCourt determining that

this Planmeetsthe requirements ofChapter 11 oftheCode and is entitled to confirmation under

Chapter 11 of the Code.

22. "Petition Date" shall mean the date on which theDebtor filed this proceeding, 

August 28, 2023.

23. "Plan" shall mean this Plan of Reorganization in its present form or asit may 

be amended, modified or supplemented.

24. "Priority Claim" shall mean any Claim entitled to priority pursuant to 

Section 507(a) of the Code except for Tax Claims and Claims incurred by the Debtor postpetition in the ordinary course of business.

25. "Rejection Claim" shall mean any Claim arising out of the rejection of a 

lease or executory contract pursuant to Section 365 of the Code, which Claim shall be treated 

as an Unsecured Claim.

26. "Reorganized Debtor" shall mean the entity which shall assume title to and 

control of the Debtors' assets and liabilities upon confirmation as provided herein.

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27. "Secured Claim" shall mean an Allowed Claim secured by a lien, security 

interest, or other encumbrance on the properties owned by the Debtor, which lien, security

interest, or other encumbrance has been properly perfected asrequired by law, to the extent of

the value of the property encumbered thereby. That portion ofsuch Claim exceeding the value

of the security held therefor shall be an Unsecured Claim, as defined below and determined

pursuant to 11 U.S.C.

§506(a).

28. "Sub-Chapter V Trustee" shall be that person appointed under 11 U.S.C. §1183.

29. "Substantial Consummation" shall occur upon Reorganized

Debtor's commencement of payments to creditors as provided in thisPlan.

30. "Tax Claims" shall mean any Claim entitled to priority under Section 507(a)(8) 

of the Code and shall include the claims of taxing authorities for taxes owed on the property 

retained by the Debtor under this Plan.

31. "Unsecured Claim" shall mean any Allowed Claim, whether or not liquidated or 

contingent other than a Priority Claim, a Tax Claim, or a Secured Claim.

ARTICLE III

REPRESENTATIONS

NO REPRESENTATIONS CONCERNING THE DEBTOR ARE AUTHORIZED BY 

THE DEBTOR OTHER THAN THOSE SET FORTH IN THIS PLAN. THE DEBTOR 

RECOMMENDS THAT ANY REPRESENTATION OR INDUCEMENT MADE TO SECURE 

YOUR ACCEPTANCE OR REJECTION OF THE PLAN WHICH IS NOT CONTAINED IN

THISPLANSHOULDNOTBERELIEDUPONBYYOUINREACHING YOUR DECISION ON 

HOW TO VOTE ON THE PLAN. ANY REPRESENTATION OR INDUCEMENT MADE TO

YOU NOT CONTAINED HEREIN SHOULD BE REPORTED TO THE ATTORNEYS FOR

DEBTOR WHO SHALL DELIVER SUCH INFORMATION TO THE COURT FOR SUCH 

ACTION AS MAY BE APPROPRIATE.

ANY BENEFITS OFFERED TO THE CREDITORS ACCORDING TO THE PLAN 

WHICH MAY CONSTITUTE "SECURITIES" HAVE NOT BEEN APPROVED OR 

DISAPPROVED BY THE FEDERAL SECURITIES AND EXCHANGE COMMISSION 

("SEC"), THE TEXAS SECURITIES BOARD, OR ANY OTHER RELEVANT 

GOVERNMENTAL AUTHORITY IN ANY STATE OF THE UNITED STATES. IN

ADDITION, NEITHER THESEC,NOR ANYOTHER GOVERNMENTAL AUTHORITY HAS 

PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PLAN. ANY 

REPRESENTATIONS TO THE CONTRARY MAY BE A CRIMINAL OFFENSE.

THE INFORMATION CONTAINED HEREIN HAS NOT BEEN SUBJECT TO A 

CERTIFIED AUDIT. FOR THE FOREGOING REASON, AS WELL AS BECAUSE OF THE 

IMPOSSIBILITY OF MAKING ASSUMPTIONS, ESTIMATES AND PROJECTIONS INTOTHE

FUTURE WITH ACCURACY, THEDEBTOR ISUNABLE TO WARRANT OR REPRESENT 

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THAT THE INFORMATION CONTAINED HEREIN IS COMPLETELY ACCURATE, 

ALTHOUGH EVERY REASONABLE EFFORT HAS BEEN MADE TO ENSURE THAT 

SUCH INFORMATION IS ACCURATE. THE APPROVAL BY THE COURT OF THIS PLAN 

DOES NOT CONSTITUTE AN ENDORSEMENT BY THE COURT OF THE PLAN OR

GUARANTEE THE ACCURACY OR COMPLETENESS OF THE INFORMATION 

CONTAINED HEREIN.

THE DEBTOR BELIEVES THAT THE PLAN WILL PROVIDE CLAIMANTS WITH

AN OPPORTUNITY ULTIMATELY TORECEIVE MORE THAN THEYWOULD RECEIVE 

IN A LIQUIDATION OF THE DEBTOR'S ASSETS AND SHOULD BE ACCEPTED. 

CONSEQUENTLY, THE DEBTOR URGES THAT CLAIMANTS VOTE FOR THE PLAN.

DEBTOR DOES NOT WARRANT OR REPRESENT THAT THE INFORMATION 

CONTAINED HEREIN ISCORRECT, ALTHOUGH GREATEFFORT HASBEENMADE TO

BEACCURATE. THESTATEMENTS CONTAINED INTHIS PLAN ARE MADE AS OF THE 

DATE HEREOF UNLESS ANOTHER TIME IS SPECIFIED HEREIN.

 

ARTICLE IV

FINANCIAL PICTURE OF THE DEBTOR

Financial History and Background of the Debtor

Watauga Family Dentistry, PLLC (“Watauga”) is a general dentistry practice which started 

operations in July 2014. Watauga was forced to file bankruptcy due to its inability to service its 

debt payments to the U.S. Small Business Administration. 

The Debtor filed this case on August 28, 2023. Debtor proposes to pay allowed claims 

based on the liquidation analysis and cash available. Debtor anticipates having enough business 

and cash available to fund the plan and pay the creditors pursuant to the proposed plan. Attached 

hereto as Exhibit “A” are projections of gross income, expenses, and operating income for the next 

five years. It is anticipated that after confirmation, the Debtor will continue operations. Based 

upon the projections, the Debtor believes it can service the debt to the creditors.

Post-Confirmation Management

The Debtor is currently owned 100% by William Oliver. Dr. Oliver will remain the 

Managing Member and representative of the Debtor going forward.

ARTICLE V

ANALYSIS AND VALUATION OF PROPERTY

The Debtor operates a general dentistry business. To that end, the Debtor owns office 

furniture, dental tools, and equipment in order to operate its business. The U.S. Small Business 

Administration has a blanket UCC lien on Debtor’s assets and is the only secured creditor. As 

reflected on the Liquidation Analysis attached as Exhibit B to this Plan, the U.S. Small Business 

Administration is undersecured. 

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ARTICLE VI

MEANS FOR IMPLEMENTATION OF THE PLAN

The Debtor will continue operating its business. The Debtor’s Plan will break the existing 

claims into five classes of Claimants. These claimants will receive cash repayments over a period 

of time beginning on the Effective Date. While Debtor’s Plan proposes to pay claims not to exceed 

five (5) years, nothing prevents Debtor from prepaying its claims.

Satisfaction of Claims and Debts: The treatment of and consideration to be received 

by holders of Allowed Claims or interests pursuant to this Article VI of this Plan shall be the

sole and exclusive means for full settlement, release and discharge of their respective Claims, 

Debts, or interests as against the Debtor. On the Confirmation Date, the Reorganized Debtor

shall assume all duties, responsibilities, and obligations forthe implementation ofthis Plan.

Class 1 Claimants - Allowed Administrative Claims of Professionals and

Subchapter V Trustee) are unimpaired and will be paid in full on the Effective Date of this 

Plan. Professional fees are subject to approval by the Court as reasonable. Debtor's attorney's 

fees approved by the Court will be paid immediately following approval by the Court. The 

Subchapter V Trustee fees will be paid immediately following approval by the Court. The 

Debtor's case will not be closed until all allowed AdministrativeClaims are paid in full. Class

1Creditor Allowed Claims are estimated as ofthe date of the filing of this Plan to not exceed 

the amount of $30,000.00. All Fee Applications must be filed no later than 60 days after the 

effective date of the plan.

Class 2 Claimant - Priority Tax Claims for the Texas Workforce Commission. 

Notwithstanding anything else to the contrary in the Plan or Confirmation Order, these provisions 

will govern the treatment of the claims of the Texas Workforce Commission: (1) nothing provided 

in the Plan or Confirmation Order shall affect or impair any statutory or common law setoff rights 

of the Texas Workforce Commission in accordance with 11 U.S.C. § 553; (2) nothing provided in 

the Plan or Confirmation Order shall affect or impair any rights of the Texas Workforce 

Commission to pursue any non-debtor third parties for tax debts or claims, and the Texas 

Workforce Commission specifically opt out of any third party releases, if any; (3) nothing provided 

in the Plan or Confirmation Order shall be construed to preclude the payment of interest on the 

Texas Workforce Commission's administrative expense tax claims; (4) to the extent that interest 

is payable with respect to any administrative expense, priority or secured tax claim of the Texas 

Workforce Commission, the interest rate shall be the statutory interest rate, currently 8.50% per 

annum; and (5) nothing provided in the Plan or Confirmation Order impacts the governmental 

claims bar date, and Texas Workforce Commission may amend their claims at any point. 

 

The Texas Workforce Commission shall not be required to file any proof of claim, motion, 

or request for payment in order to be paid any Administrative Claims for taxes that arise or have 

arisen in the ordinary course of the Debtor’s business, including all post-petition taxes incurred by 

the Debtor after the Petition Date. All Administrative Claims owed to the Texas Workforce 

Commission shall be paid in full with applicable interest through the date payment is made on or 

before the Effective Date, or as otherwise agreed by the Texas Workforce Commission, whichever 

is the respective agency claimant for such Administrative Claim. If any Administrative Claim 

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owed to the Texas Workforce Commission is not due on the Effective Date, then such 

Administrative Claim shall be paid in the ordinary course of business in accordance with 

applicable law.

All priority tax claims owed to the Texas Workforce Commission shall be paid in full either 

(1) on the Effective Date; (2) in equal monthly installments of principal and interest no later than 

sixty (60) months of the Debtor’s bankruptcy petition date; or (3) as otherwise agreed to by the 

Texas Workforce Commission, whichever is the relevant agency to the claim at issue. The Texas 

Workforce Commission’s priority tax claims shall accrue interest at the statutory rate of interest, 

currently 8.50% per annum, from the Plan’s Effective Date until paid in full.

2-1 Texas Workforce Commission (Claim No. 2-2) (This claim is unimpaired) is for 

tax due and owing to the Texas Workforce Commission based upon the return filed by the Debtor 

for the periods in 2023, in the amount of $342.10. Proof of Claim #2-2 shall be paid in full on the 

Effective Date of the Plan. 

A failure by the Debtor or Reorganized Debtor to make a plan payment to an agency of the 

State of Texas shall be an Event of Default. If the Debtor of Reorganized Debtor fails to cure an 

Event of Default as to an agency of the State of Texas within five (5) days after service of a written 

notice of default, then that agency may (a) enforce the entire amount of its claim; (b) exercise any 

and all rights and remedies available under applicable non-bankruptcy law; and (c) seek such relief 

as may be appropriate in this court. The Debtor and/or Reorganized Debtor can receive up to three 

(3) notices of default, however, the third default cannot be cured.

Class 3 Claimant – Secured Claim (This claim is impaired) Allowed Secured Claim is

secured by property of the Debtor’s bankruptcy estate (or that are subject to set-off) to the extent 

allowed as secured claims under § 506 of the Code. If the value of the collateral or setoffs securing 

the creditor’s claim is less than the amount of the creditor’s allowed claim the deficiency will be 

classified as a general unsecured claim. The following class contains Debtor’s secured pre-petition 

claim and the proposed treatment under the Plan:

3-1 U.S. Small Business Administration (“SBA”) (Claim No. 1-1 filed a proof of 

claim in the secured amount of $122,389.89 with an unsecured claim amount of $325,673.75). 

The SBA asserts it is partially secured by Watauga Family Dentistry, PLLC’s business 

property pursuant to a blanket UCC Lien that was recorded on June 5, 2020 which puts this 

claim in Lien Position 1. Therefore, the SBA is partially secured due to the liquidation 

analysis as to the assets of Watauga Family Dentistry, PLLC on the plan filing date and 

according to their proof of claim No. 1-1. Debtor proposes to pay the secured claim amount

of SBA’s claim in the amount of $122,389.89 at 8.50% over 60 equal monthly payments at 

$2,511.02 per month. The first monthly payment on the secured claim amount will be due and 

payable 30 days after the effective date, unless this date falls on a weekend or federal holiday, in 

which case the payment will be due on the next business day. The under secured portion of the 

proof of claim filed the SBA will be treated in Class 4 of the Plan.

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Class 4 Claimants -- (Allowed General Unsecured Claims) are impaired and shall be 

satisfied as follows: All allowed unsecured creditors shall receive a pro rata distribution at zero 

percent per annum over the next five (5) years beginning not later than the 15th day of the first full 

calendar month following 30 days after the effective date of the plan and continuing every year 

thereafter for the additional four (4) years remaining on this date. Debtor may begin on the 

fifteenth (15th) day of the month after the effective date of confirmation, to begin disbursements 

to the Class 6 claims. Debtor will distribute up to $59,000.00 to the general allowed unsecured 

creditor pool over the 5-year (5) year term of the plan. The Debtor’s General Allowed Unsecured 

Claimants will receive 15.38% of their allowed claims under this plan. Any creditors listed in the 

schedules of Watauga Family Dentistry, PLLC as disputed and did not file a claim will not receive 

distributions under this plan. See below table for breakdown of distributions of the General 

Allowed Unsecured Claims:

Allowed General 

Unsecured Claim 

Creditors

Total of 

Claim 

Total to be 

Paid during 

the 5-year 

Plan at 

15.38% of 

Total Claim

If Monthly 

Distribution

Allign Technology $21,000.00 $3,230.65 $53.84

Darby Dental Supply 

LLC

$9,634.87 $1,482.23 $24.70

Den-Mat Holdings, 

LLC

$3,420.50 $526.21 $57.01

NDX Green $1,677.12 $258.01 $4.30

NDX Heumann 

Topeka

$7,892.76 $1,214.23 $20.24

Next Dental $2,553.00 $392.76 $6.55

Patterson Dental 

(Claim No. 3-1)

$11,661.85 $1,794.07 $29.90

SBA (Claim 1-1) $325,673.75 $50,101.84 $835.03

Totals: $383,513.85 $59,000.00 $1,031.57

* If any creditor has not filed a proof of claim, Watauga Family Dentistry, PLLC reserves it 

rights to continue to dispute any claim and its rights to change the treatment of those claims 

after the proof of claim bar date.

Class 5 Equity Interest Holders(Current Owner) arenotimpaired underthePlan and

shall be satisfied as follows: The current owner will receive no payments under the Plan;

however, theywill be allowed to retain their ownership in the Debtor.

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ARTICLE VII 

CLAIMS OBJECTION PROCESS

The Bar Date for all creditors or interest holders, other than governmental units, to file

proofs of claim with the Bankruptcy Clerk was November 6, 2023. The Bar Date for governmental 

units to file Proofs of Claim with the Bankruptcy Clerk was not later than 180 days from petition 

date.

In accordance with Bankruptcy Rule 3003(c), any entity, Person or Creditor whose Claim

was listed in the Schedules, or holds a Contingent Claim, Unliquidated Claim, or Disputed Claim, 

and did not file a proof of Claim before the Bar Date, shall not be treated as a Creditor with respect 

to such Claim for purposes of voting or distribution.

Following the Effective Date, the Debtor shall have standing to object to Claims.

Within sixty (60) days from the Effective Date, unless such date is extended by Order of

the Bankruptcy Court after notice and hearing, the Debtor may File with the Bankruptcy Court

objections to Claims and Equity Interests and shall serve a copy of each such objection upon the

holder of the Claim or Equity Interest to which such objection pertains (“Disputed or

Undetermined Claim”). Unless arising from an Avoidance Action, any Proof of Claim Filed after

the Effective Date shall be of no force and effect and need not be objected to. Any Disputed or

Undetermined Claim may be litigated to Final Order. The Debtor may compromise and settle any 

Disputed or Undetermined Claim without the necessity of any further notice or approval of the 

Bankruptcy Court, and Bankruptcy Rule 9019 shall not apply to any settlement of a Disputed or

Undetermined Claim after the Effective Date.

At the time, and to the extent that a Disputed or Undetermined Claim becomes an Allowed 

Claim, such Allowed Claim shall be entitled to distributions under the Plan. Such Distributions 

shall be made in the manner provided for by this Plan, or any Final Order of the Bankruptcy Court 

with respect to such Allowed Claim.

ARTICLE VIII

EFFECT OF CONFIRMATION OF PLAN AND INJUNCTION

A. Effective Date and Notice.

The Effective Date of the Plan is the first business day following the date that is 30 days

after the entry of the order confirming the Plan becomes final and non-appealable; provided

however, if an appeal of the order confirming the Plan has been taken and a stay of confirmation

pending appeal in effect, the Effective Date will be the first business day after the date on which

the stay expires or is otherwise terminated.

On or before ten (10) Business Days after the occurrence of the Effective Date, the Debtors

shall mail or cause to be mailed to all holders of Claims and Equity Interests a notice that 

informs such holders of the following: (a) entry of the Confirmation Order; (b) occurrence ofthe

Effective Date; and (c) such other matters that Debtors deems appropriate.

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B. Binding Effect of Plan.

Upon the Effective Date, the Plan and each of its provisions shall be binding on the Debtor, 

all Creditors, all Equity Interest holders, and all Persons acquiring property under the Plan, whether 

or not they voted to accept the Plan, whether or not they had a right to vote on the Plan, whether 

or not any Claim or Equity Interest held by any of them is Impaired under the Plan, whether or 

not any Claim or Equity Interest held by any of them is Allowed in full, only in part, or Disallowed 

in full, and whether or not a Distribution is made to any of them under the Plan. This provision

includes all successors and assigns of the parties named herein.

C. Vesting of Assets.

Upon the Effective Date, all assets of the Estate shall vest in the Debtor, except as

otherwise provided in the Plan.

D. Discharge.

1. Consensual Plan

A consensual plan is one in which the debtor has met all requirements of § 1129(a) of the 

Bankruptcy Code except for paragraph (15), but including having all classes of creditors entitled

to vote to accept the Plan. If Debtor’s Plan is confirmed under § 1191(a), on the Effective Date of 

the Plan, Debtor will be discharged from any debt that arose before confirmation of this Plan, to 

the extent specified in § 1141(d)(1)(A) of the Code. Debtors will not be discharged from any debt 

imposed by this Plan.

2. Non-consensual Plan

A non-consensual plan is one in which the debtor has met all requirements of § 1129(a)

of the Bankruptcy Code except for paragraphs (8), (10), and (15) of section 1129. In the event

Debtor is unable to get all impaired classes of creditors to vote in favor of the Plan, Debtor will

seek for the Court to confirm the Plan pursuant to § 1191(b) of the Bankruptcy Code. If Debtor’s

Plan is confirmed under § 1191(b), Debtor will receive a discharge by the Court upon completion

of all payments due within the first 3 years of this Plan, or as otherwise provided in § 1192 of the

Code. Debtor will not be discharged from any debt: (a) on which the last payment is due after the 

first 3 years of the plan, or as otherwise provided in § 1192; or (b) expected from discharge under 

§ 523 (a) of the Code, except as provided in Rule 4007(c) of the Federal Rules of Bankruptcy

Procedure.

ARTICLE IX

FEASIBILITY OF PLAN

The projections of the future business operations are attached hereto as Exhibit "A". 

The Debtor believes that the projections are accurate based upon the accounts receivable and

the work currently on the books. Based upon the projections, the Debtor believes the Plan to 

be feasible.

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ARTICLE X

RETENTION OF JURISDICTION

The Bankruptcy Court's jurisdiction to enforce or interpret this Plan shall be retained

under the Plan.

ARTICLE XI

ALTERNATIVES TO DEBTOR'S PLAN

If the Debtor's Plan is not confirmed, the Debtor's bankruptcy case may be converted

to a case under Chapter 7 of the Code, in which case a trustee would be appointed to liquidate

the assets of the Debtor for distribution to itsCreditors in accordance with the priorities of the

Code. Generally, a liquidation orforced sale yields a substantially lower amount. Asset forth

above, the Debtor owes approximately $30,000.00 in administrative claims. Claims to the 

administrative creditors must be paid prior to the unsecured creditors receiving any payment.

The amount owed to the unsecured creditorsis approximately $383,513.85. TheDebtor’s assets 

include funds in the bank, accounts receivables, office furniture and equipment.

Administrative creditors must be paid before unsecured debts, and therefore, a liquidation 

would result in a smaller distribution to the unsecured creditors.

A liquidation analysis is attached hereto as Exhibit "B".

ARTICLE XII

STATUS OF EXECUTORY CONTRACTS AND LEASES

All unexpired leases and executory contracts shall be assumed on or before the 

Effective Date. To the extent there are any unexpired leases or executory contracts, which 

have not been assumed or dealt with in this Plan or Court Order prior to the Effective Date, 

they are rejected.

ARTICLE XIII

EVENTS OF DEFAULT AND EFFECT THEREOF

Any creditor remedies allowed by 11 U.S.C. § 1112(b)(4)(N) shall be preserved to the 

extent otherwise available at law. In addition to any rights specifically provided to a claimant 

treated pursuant to this Plan, a failure by the Reorganized Debtor to make a payment or maintain 

the required insurance as to all Collateral to a creditor pursuant to the terms of this Plan shall be 

an event of default as to such payments or the maintaining of insurance, if the payment or lack of 

insurance is not cured within ten (10) days after mailing written notice of default from such creditor 

to the Reorganized Debtor. Any default notice, inquiry, or other formal communication pursuant 

to the Plan shall be mailed by certified mail, return receipt requested to the following: 

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Robert “Chip” Lane

The Lane Law Firm

6200 Savoy Drive

Suite 1150

Houston, Texas 77036-3300

The Debtor will be entitled to no more than two (2) notices of default during the term of 

the Plan from any creditor. Upon a third default to that creditor, the automatic stay as to that 

creditor shall be automatically terminated without further notice or order from the Court.

ARTICLE XIV

DISCHARGE

Upon Confirmation pursuant to 11 U.S.C. §1191(a) to the extent that a Claim or

Debt has been dealt with under this Plan, such Claim or Debt will be discharged. Upon

confirmation pursuant to 11 U.S.C. § 1191(b) discharge shall occur upon completion of all

payments required under this Plan.

The automatic stayimposed bySection 362oftheCodeor anypreliminary injunction

granted by the Court to allow for Substantial Consummation of this Plan shall remain in 

effect until the Effective Date.

ARTICLE XV

RISKS TO CREDITORS UNDER THE DEBTOR'S PLAN

Claimants and Equity Interest Holders should be aware that there are a number of

substantial risks involved in consummation of the Plan. The Plan contemplates that there

will be excessfunds to pay Creditor Claims.

Confirmation of the Plan shall result in the issuance of a permanent injunction 

against the commencement or continuation of any judicial, administrative, or other action 

or proceeding on account of any Claims against either Debtor that arose prior to the 

Confirmation Date, unless such action is authorized by this Plan or 11 U.S.C. § 1141.

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ARTICLE XVI

TAX CONSEQUENCES TO THE DEBTOR

Implementation of the Plan may result in federal income tax consequences to holders 

of Claims, Equity Interest Holders, and to the Debtor. In this case most of the creditors will 

not be paid in full the amount of their claims. Tax consequences to a particular Creditor or 

Equity Interest Holder may depend on the particular circumstances or facts regarding the 

Claim of the Creditor or the interests of the Equity Interest Holder. CLAIMANTS ARE

URGED TO CONSULT THEIR OWN TAX ADVISOR ASTOTHECONSEQUENCES

OF THE PLAN TO THEM UNDER FEDERAL AND APPLICABLE STATE AND 

LOCAL TAX LAWS.

ARTICLE XVII

PENDING OR ANTICIPATED LITIGATION

The Debtor has evaluated potential claims which may be brought. The Debtor is

unaware of any litigation which could be brought for the benefit of the creditors of the

estate other than the litigation to collect pending accounts receivable.

Dated: November 15, 2023

Respectfully submitted, 

Watauga Family Dentistry, PLLC

By: /s/ William Oliver

 William Oliver, Managing Member

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