For attorneys representing chapter 13 debtors who have been affected by the recent and devastating floods in eastern Kentucky, here is some information to assist you in counseling your clients about their chapter 13 cases.
If a confirmed plan provides that the debtors will cure arrearages through the plan and maintain ongoing payments on a mortgage or long-term car loan, and the debtors complete plan payments and get a discharge, those section 1322(b)(5) debts are not discharged. What happens if after confirmation the debtors change their mind – is the claim still excepted from discharge?
Surrender of Collateral Without Delivery?: Can a debtor “surrender” collateral – and cause a secured claim to be treated as unsecured – without physically delivering the collateral to the creditor (or making the collateral available to the creditor)?