Mortgages: Trustee Disburse or Not Trustee Disburse, That is the Question

By Scott G. Stout, Staff Attorney, Office of Jeffrey M. Kellner, Chapter 13 Trustee (Dayton, OH)

What does pay “outside” the plan mean? What about “inside” the plan? Aren’t these so called terms of art obsolete as a carryover from the Bankruptcy Act of 1898? Aren’t all claims now provided for under the plan? In other words, shouldn’t the terms “outside” and “inside” be scrapped for the more accurate phraseology: Trustee disburse or Debtor disburse? And, if so, what difference does it make? For this discussion, I will concentrate solely on mortgage claims.

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