The Magic Plan - Name your "lifesaver"

[FranksMom]

Hi again....

Hope I'm not sucking too much info out of you guys... don't want to be greedy... (lol)

I am working on my (amended) plan, using a basic court template. Does anyone have anything in their plan, such as a clause, varying provision or otherwise that they feel helped them, saved them, or protected them more than a generic template without additions would have? If so, would you please share with me? I know that ch 13 plans are VERY customizable, and I want to ensure that I am writing a plan that will give me as much protection and benefit as possible.

For example, I just added to my plan that any surrendered collateral will serve as complete satisfaction of the debt (so they cannot go after me for deficiencies). Whether my provision makes it through or not, that's another story....

Suggestions, anyone?

[justbroke]

For example, I just added to my plan that any surrendered collateral will serve as complete satisfaction of the debt (so they cannot go after me for deficiencies). Whether my provision makes it through or not, that's another story....

You mean like this? (I think #2 below is something necessary. I have read about Adversarial Proceedings in which the creditor demanded Arbitration. )

Other Provisions... (note: this is not all of my provisions. I have 18 provisions.)

[HHM]

The provisions you have mentioned so far all happen by operation of law anyway, you don't really need to list them.

The one about full satisfaction for surrendered property actually doesn't fly. The deficiency balance is converted to an unsecured claim and if the creditor files a proof of claim, it becomes part of your general unsecured claims of your chapter 13 plan.

[FranksMom]

HHM,

You bring up a valid point regarding the deficiency balance. However, if you are keeping, say, a vehicle with both a secured and unsecured balance (if vehicle is upside down, as most are) and you are required to pay both the secured and unsecured debt on it (assuming that it's not a 910 vehicle and you cannot make any modifications to the loan), then certainly surrendering the vehicle would satisfy the entire claim as satisfaction in full- its only fair.

The items that justbroke put in their plan language will be helpful upon confirmation, should a creditor that I am describing attempt to recoup any deficiency in the future.

[justbroke]

The provisions you have mentioned so far all happen by operation of law anyway, you don't really need to list them.

The one about full satisfaction for surrendered property actually doesn't fly. The deficiency balance is converted to an unsecured claim and if the creditor files a proof of claim, it becomes part of your general unsecured claims of your chapter 13 plan.

HHM. One of my mortgage holders (on my properties), is taking the full satisfaction and not filing a deficiency. I don't know if this is underlying state law or what.

They did, however, complain about a bunch of other language and of course, claimed I was violating 1322(b)(2). I have removed or otherwise restricted that language.

You are absolutely right about superfluous provisions in a plan. I read a case in which the judge went through and explained EVERY provision in a Plan and mapped it to the associated portion of the Bankruptcy Code which already provided coverage for that provision. However, there was nothing on Arbitration clauses, but plenty on how to deal with arrearages, and such.

Plus, there is some caselaw which suggests that the Plan stands upon confirmation and if the creditor didn't object to the language, they are bound by it. (Except where it attempts to modify a residence which is your primary residence under 1322(b)(2).)

Or am I wrong. Also, the language I used is very similar to what most of the lawyer put on Plans in this District. I may have one or two additional ones specific to some items in my Plan.

[FranksMom]

Speak or forever hold your peace

Plus, there is some caselaw which suggests that the Plan stands upon confirmation and if the creditor didn't object to the language, they are bound by it. (Except where it attempts to modify a residence which is your primary residence under 1322(b)(2).)

Exactly.... that's why I was trying to put as much as I could in the plan, to at least deter any actions that may occur following confirmation. Of course, ANYTHING can be argued, but it's a nice vest to wear under your sweater, in case you need it.