Interest on secured debt arrears in c13
Posted: Sun Nov 07, 2010 6:02 pm
Debtor fell behind on his mortgage payments and will be filing c13 to
cure the default and pay the arrears over the course of a 60 month
plan.
1. The arrears will be paid through the plan in 60 payments. Are
these going to be principal only payments or principal and interest
payments?
2. Does 1325(a)(5)(B) require that the secured creditor receive
interest, and if so, will this be interest at the contract rate?
3. In my client's case there is a significant equity cushion above
the mortgage. Would the result be different if the secured debt was
partially undersecured?
(5) with respect to each allowed secured claim provided for by the plan (B)
(ii) the value, as of the effective date of the plan, of
property to be distributed under the plan on account of such claim is
not less than the allowed amount of such claim;
Alik Segal
Alik.Segal@gmail.com
310-362-6157
Cal. CD, Los Angeles
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