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Possible Chapter 13 Practice Pitfall
Steve - I believe that is in the 3015-1 LBRs.
Law Office of Eric Alan Mitnick
21515 Hawthorne Boulevard, Ste. 1080
Torrance, CA 90503
(310) 792-5864; 792-5866 (fax)
MitnickLaw@aol.com
Steve - I believe that is in the 3015-1 LBRs.
Law Office of
Eric Alan Mitnick21515 Hawthorne Boulevard, Ste. 1080Torrance, CA
90503(310) 792-5864; 792-5866
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I just found out about a Chapter 13 practice pitfall I thought I'd
share. I did not oppose relief from stay on a Chapter 13 case because
the Debtors assured me they would quickly be postpetition current, which
they in fact did become. They knew that subsequent postpetition
payments needed to be on time or they could be foreclosed on without a
further order and were OK with that.
However, when the order came through it had the following provision,
which is part of the Order form:
8. In chapter 13 cases, the trustee must not make any
further payments on account of Movant's secured claim after entry of
this Order. The secured portion of Movant's claim is deemed withdrawn
upon entry of this Order without prejudice to Movant's right to file an
amended unsecured claim for any deficiency. Absent a stipulation or
order to the contrary, Movant must return to the trustee any payments
received from the trustee on account of Movant's secured claim after
entry of this Order.
This means that even though they are postpetition current, that the
Trustee need make no further payments and the secured lender can pay
back the Trustee what has been paid so far, which I guess is to comply
with California foreclosure statute 2924 et. seq. which prohibits
payments on a current NOD and NOS.
I am opposing the form of the Order because the Motion did not say it
was requesting this relief. I hope I fare well on this because this is
a 13 that is almost 3 years old and has a 2nd lien stripped.
Steve
Law Offices of Steven B. Lever
>
> Steven B. Lever
>( Tel. (562) 436-5456 ext. 6470
>( Fax (800) 360-5161
>* sblever@leverlaw.com
> www.leverlaw.com
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