Does 1325(a)(5)(B)(iii)(I) prohibit "frontloading" of secured
Posted: Sun Mar 01, 2015 5:12 pm
I am trying to find authority that says a debtor can or can't frontload the
mortgage arrears in a Chapter 13 Plan. I understand the objection to that
type of plan is that a Debtor can pay off the arrears in say, two years
without paying any of the unsecureds, then dismiss the plan, and the
unsecureds got nothing the whole time, but I am not sure if the Code
actually prohibits this, unless it's the section I cited above which
indicates that payments must be in equal monthly amounts (unless I am
reading this wrong). Example: 24 months of $500 per months on arrears and
36 months of $0 on the arrears is not "equal monthly payments".
Holly Roark
Certified Bankruptcy Specialist*
*and Sports Lawyer*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
Central District of California - Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067
T (310) 553-2600; F (310) 553-2601
*By State Bar of California Board of Legal Specialization
**Counsel for Chapter 13 Trustee Kathleen A. McCallister (Idaho) T (208)
922-5100
I am trying to find authority that says a debtor can or can't frontload the mortgage arrears in a Chapter 13 Plan. I understand the objection to that type of plan is that a Debtor can pay off the arrears in say, two years without paying any of the unsecureds, then dismiss the plan, and the unsecureds got nothing the whole time, but I am not sure if the Code actually prohibits this, unless it's the section I cited above which indicates that payments must be in equal monthly amounts (unless I am reading this wrong). Example: 24 months of $500 per months on arrears and 36 months of $0 on the arrears is not "equal monthly payments".Holly RoarkCertified Bankruptcy Specialist*and Sports Lawyer
holly@roarklawoffices.com**primary email address**
www.roarklawoffices.com
Central District of California - Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067
T (310) 553-2600; F (310) 553-2601
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