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Does 1325(a)(5)(B)(iii)(I) prohibit "frontloading" of
The Debtor can frontload mortgage payments for a few reasons. First, the
creditor will accept being paid sooner so 5(A) is satisfied and analysis
complete. Second, if we assume a secured creditor objects on the basis that
it is being paid too quickly, you can do it anyway. The language of the
section is:
"[If] property to be distributed pursuant to this subsection is in the form
of *periodic payments*, such payments shall be in equal monthly amounts"
There is no requirement there that the equal monthly payments must be for
the entire term of the plan. So say you want to pay back over a 20 month
period, the requirement is satisfied if you take the total and divide by 20
to obtain equal monthly payments throughout the *period*.
Sincerely,
*Michael Avanesian, Esq. *AVANESIAN LAW FIRM
101 N. Brand Blvd., PH 1920
Glendale, California 91203
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On Sun, Mar 1, 2015 at 5:12 PM, Holly Roark hollyroark22@gmail.com [cdcbaa]
wrote:
>
>
> 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
>
>
>
The Debtor can frontload mortgage payments for a few reasons. First, the creditor will accept being paid sooner so 5(A) is satisfied and analysis complete. Second, if we assume a secured creditor objects on the basis that it is being paid too quickly, you can do it anyway. The language of the section is:
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