Objection to Confirmation of Plan

[UpsideDownMI]

I have just been advised that the cases I cited are pre-BAPCA and do not apply. Time to research some more!

[justbroke]

Who told you that pre-BAPCPA cases don't apply? I think you have adequate protection issues... because I'm now assuming that you have negative equity in the vehicle?

Also, why can't you provide payments while doing your arrears?

[HHM]

This will be a tough road, as justbroke points out, this sounds like an Adequate Protection issue. Some money usually needs to be paid to secured creditors in the plan from the outset. This may vary be district, but the emerging standard for Adequate Protection is 1% of the outstanding balance per month in the plan.

There is inherently nothing wrong wit Pre-BAPCPA case law, but you do need to be careful to make sure BAPCPA didn't change the underlying statute, thus making those cases null.

[UpsideDownMI]

[UpsideDownMI]

Who told you that pre-BAPCPA cases don't apply? I think you have adequate protection issues... because I'm now assuming that you have negative equity in the vehicle?

Also, why can't you provide payments while doing your arrears?

[justbroke]

Makes sense. Why did the post-petition arrears get "priority" status anyhow? Is this how they do it in your District? I actually don't like Districts that use the more structures Class system. My District only has Administrative, Priority, Secured, and General Unsecured. Makes it simpler! Plus we can pay Priority Unsecured and Secured at the same time.

[UpsideDownMI]

I used the "model plan" for our district, so I believe it is safe to assume that it is district standard. I would think that most debtors in my district that pay a car payment inside the plan would have the same issue, especially when you factor in class 1 attorney fees of approx 3k and trustee payments. I actually failed to calculate Post Petition/Pre Confirmation arrears when drafting my plan. However, I just reviewed my plan and see that these arrears are a class 2b claim that must be paid in the first 12 months, even though I did not have dollar amounts listed.