Plan step up caused by stripping off the 2nd Trust Deed
Posted: Tue May 05, 2009 3:13 pm
Cc: Kathy Dockery; Mecca Mercado
Subject: Plan step up caused by stripping off the 2nd Trust Deed
Good afternoon again Colleagues:
Please be aware that Judge Carroll will be reviewing plans and budgets to
determine if the additional income created by stripping off a 2nd Trust Deed
and the debtor no longer being required to make the payment on the 2nd Trust
Deed should be cause for a step up in the chapter 13 plan. The amount of
the step up will be determined based on the debtor's budget, the percentage
proposed in the plan and other possible factors. The timing of the step up
appears to be based on when the adversary proceeding is expected to be
resolved.
Please advise your clients accordingly.
Aki Koyama
Staff Attorney for
Chapter 13 Trustee
Kathy A. Dockery
(213) 996-4450
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