How are the claims of secured creditors dealt with in Chapter 13 cases?
If a Debtor wants to keep the property which secures a debt, the Debtor must provide for the payment of the secured creditor and for the retention of the creditor’s lien. A Debtor may elect to surrender the collateral and any deficiency is generally treated as an unsecured claim. If the Debtor is in default to a secured creditor, the default must be cured (made current) within a reasonable time.
There are four methods of dealing with secured claims in Chapter 13 cases: (1) the creditor may accept the debtor’s plan, (2) the creditor may retain its lien and be paid the full amount of its secured claim in equal monthly payments under the plan, (3) the debtor may surrender the collateral to the creditor, (4) the creditor may be paid or dealt with outside the plan. It is important to understand that most partially-secured creditors have a secured claim only to the extent of the value of their collateral. If the debtor is in default to a secured creditor, the default must be cured (made current) within a reasonable time.
There are four methods of dealing with secured claims in chapter 13 cases: (1) the creditor may accept the debtor’s plan, (2) the creditor may retain its lien and be paid the full amount of its secured claim in equal monthly payments under the plan, (3) the debtor may surrender the collateral to the creditor, or (4) the creditor may be paid or dealt with outside the plan. It is important to understand that most partially-secured creditors have a secured claim only to the extent of the value of their collateral. If the debtor is in default to a secured creditor, the default must be cured (made current) within a reasonable time.
If a Debtor wants to keep the property which secures a debt, the Debtor must provide for the payment of the secured creditor and for the retention of the creditor’s lien. A Debtor may elect to surrender the collateral and any deficiency is generally treated as an unsecured claim. If the Debtor is in default to a secured creditor, the default must be cured (made current) within a reasonable time.
There are four methods of dealing with secured claims in chapter 13 cases: (1) the creditor may accept the debtor’s plan, (2) the creditor may retain its lien and be paid the full amount of its secured claim under the plan, (3) the debtor may surrender the collateral to the creditor, or (4) the creditor may be paid or dealt with outside the plan. It is important to understand that most partially-secured creditors have a secured claim only to the extent of the value of their collateral. If the debtor is in default must be cured (made current) within a reasonable time.
