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In re Linkous (Case No. 03-04429) 03/24/2006

A secured creditor filed a motion for relief from the automatic stay of 11 U.S.C. § 362 because the Debtors did not make a balloon payment as required under the original contract, and instead, made monthly installment payments as provided for under their confirmed Chapter 13 plan.  11 U.S.C. § 1327(a) provides that once a plan is confirmed, the debtor and each creditor are bound by the terms of the plan, regardless of whether the plan provides for the creditor's claim, and regardless of whether such creditor has raised an objection, accepted, or has rejected the plan.  See 11 U.S.C. § 1327(a).  Accordingly, the Court denied the creditor's motion for relief, finding that the plain language of the Debtors' Chapter 13 plan sets the amount to be paid to the creditor for the length of the plan and the balloon payment was not included in the language of the plan.  The creditor will still retain a lien on the collateral for the amount of the claim not paid under the plan, until their allowed claim is paid in full; however, the plan sets forth the terms and amount of payment for the claim.

Date: 
Friday, March 24, 2006
Category: 
Automatic Stay
Confirmation of Plan
Relief from Stay
Chapter: 
13