in RE Crawford – No Chapter 13 Payments Required
By Daniel Edstrom
DTC Systems, Inc.
Thanks to Deontos for this case. The property is not underwater and the debtor has agreed to pay all claims upon sale of the property in a reasonable time. Until the property is sold, no payments will be made on the loan. Plan approved by the bankruptcy judge.
Excerpt 1
The central question in this case is whether a Chapter 13 plan is confirmable where (a) the plan provides for payment in full of a first-mortgage lienholder upon sale of real property in which a debtor has substantial equity, but (b) where the debtor fails to provide for regular payments during the life of the plan. Put another way, may a debtor’s plan be confirmed where the debtor makes no regular payments through the plan, but, instead, makes payment, in full, to all creditors – secured an unsecured – upon sale of her real property under the plan, which property is valued far in excess of all creditors’ claims – secured and unsecured. Continue reading “in RE Crawford – No Chapter 13 Payments Required”