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Residuals paid by ASCAP - Assignment to Benefit secured
Without reading the actual documents it is difficult to determine what
exactly your pc did. Most likely the "assignment" is the granting of a
security interest in the royalties until payment of the loan.
If we assume that is the case then what you have is a secured creditor and
you can treat them per the code.
You can certainly propose a plan that pays this creditor 4.5% over 5 years
since 4.5% is within the range in *Till.* On the other hang, it is possible
for the union to come back and say the rate should be higher. That is
something you should warn your client about.
The other issue I know much less about because chapter 13 practice is very
weird!! Hypothetically speaking, if you are committing $1,400 per month
towards repayment of the loan, what are you doing with the other $600? In
the Chapter 11 context (and imo, in the Ch 13 world too), this is cash
collateral which may not be spent absent compliance with 363(c)(2). I have
a technical way around this problem but in practice, what people do is just
spend the money and confirm the plan and no one notices.
Sincerely,
*Michael Avanesian, Esq. *
Avanesian Law Firm
101 N. Brand Blvd. PH 1920
Glendale, CA 91203
Tel: 818.276.2477 | Fax: 818.208.4550
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On Thu, Nov 19, 2015 at 2:45 PM, R Grace Rodriguez rgracelaw@gmail.com
[cdcbaa] wrote:
>
>
> He BK Family. I have a potential client who receives royalty income from
> ASCAP about 24K a year. He got a loan from his credit union where he gave
> an assignment against those Royalties where he is paying 6% on $48,000.
>
> I want to file a chapter 13, agree to pay the 48K in the loan and pay
> through the plan at a lower percentage like 4.5 percent . . . . Can I
> reject the assignment so the 2000 a month in Royalty income can now start
> going directly to the debtor so debtor has money to live on?
>
> The idea is that 2 cars and the 48K at 5 years is going to come out to
> about 2000 a month. as a plan payment
> . . whereas the payment on the royalty loan is costing that by itself.
> This woudl really ehlp the family.
>
> SO Can I stop the payments on the ASSIGNMENT so it can go to the debtor?
>
>
> R. Grace Rodriguez, Esq.
> Full service Real Estate Attorney &
> California State Bar
> Certified Bankruptcy Specialist
> OFF: (818) 734-7223
> CEL: (818) 554-9922
>
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> is not intended or written by the practitioner to be used, and that it
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>
>
>
Without reading the actual documents it is difficult to determine what exactly your pc did. Most likely the "assignment" is the granting of a security interest in the royalties until payment of the loan.If we assume that is the case then what you have is a secured creditor and you can treat them per the code.You can certainly propose a plan that pays this creditor 4.5% over 5 years since 4.5% is within the range in Till.On the other hang, it is possible for the union to come back and say the rate should be higher. That is something you should warn your client about. chapter 13 practice is very weird!! Hypothetically speaking, if you are committing $1,400 per month towards repayment of the loan, what are you doing with the other $600? In the Chapter 11 context (and imo, in the Ch 13 world too), this is cash collateral which may not be spent absent compliance with 363(c)(2). I have a technical way around this problem but in practice, what people do is just spend the money and confirm the plan and no one notices.R. Grace Rodriguez, Esq.Full service Real Estate Attorney &
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