More Comments from Aki re New Chapter 13 Plan Form

Some Common Errors with the New Plan – Part 2

I just wanted to touch on some common drafting errors/omissions that I have observed with the new plan. My sample has been limited but my hope is that clarification today will make for a smoother process for the bar, the trustees and the judges.  Here they are:

1. Class 7 and Adequate Protection Order Payments for a Leased Vehicle [Page 11 of Plan] – if your client has entered into an APO with a creditor for cure of an arrearage on a leased vehicle and your client’s intention is to make direct payments to the creditor, please indicate that your client will be assuming the vehicle in Class 7 of the plan but please also indicate that your client will be paying the creditor directly pursuant to the entered APO.

If you show the lease arrearage amount in this section, it is unclear who will be paying the creditor as the default in this section is for the trustee to pay the creditor. This will avoid confusion and clearly indicate that the Debtor will be making the cure payments directly to the creditor.

2. The Plan Summary [Page 12 of Plan] – some of the software providers have not yet fixed a bug which is causing the amount of debt in each class to not be disclosed accurately in the Plan Summary. This does not seem to affect the calculation of the plan payment. You may wish to double check your plan before filing it to make sure this is not the case with your client’s plan.

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