Can a Chapter 13 debtor use non-standard plan language to extend the protection of the automatic stay without actually providing treatment to a secured creditor? In this article published in ALFN’s ANGLE magazine, ALAW Partner Jeffrey S. Fraser explores a Northern District of Florida ruling that drew a firm line.
The case involved a debtor who, rather than selecting a plan treatment consistent with the court’s Local Plan Form, inserted language in the non-standard provisions section referencing a pending state-court appeal of a foreclosure judgment. The court sustained the creditor’s objection to confirmation, ruling that the language was an improper attempt to capture automatic stay protection post-confirmation without offering the creditor any plan treatment. Fraser walks through the relevant case law, including the boundaries courts have set on non-standard provisions under Bankruptcy Rule 3015(c), and what this means for creditors navigating Chapter 13 plan confirmation.
Read the full article in ALFN ANGLE, Vol. 8, Issue 1 (March 2021) →