Payoff of secured claim in Plan and release of title
Posted: Tue Nov 13, 2012 11:46 am
Colleagues:
Our client's Chapter 13 Plan confirmed two years ago provided for payment of the secured automobile loan in full through the Plan at 5% interest. The Trustee's website shows the claim as now paid in full with a zero balance, but when I called the bank (Suntrust) to ask when the Certificate of Title would be sent to the client, they said not until the discharge is entered in 2015. They said that because the contractual interest rate is 8.89%, they will not release the Certificate of Title until discharge, because if the case is dismissed, they will be entitled to collect the difference in the unpaid interest between the contractual rate of 8.89% and the Plan rate of 5%. This doesn't seem right to me. What say you?
Jim
James R. Selth
Certified Bankruptcy Specialist*
Weintraub & Selth, APC
11766 Wilshire Boulevard, Suite 1170
Los Angeles, California 90025
Telephone: (310) 207-1494
Facsimile: (310) 442-0660
E-Mail: jim@wsrlaw.net
*Certified by State Bar of California as Certified Legal Specialist in Bankruptcy Law
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