Critical Case Comment:In re Pena

By Henry E. Hildebrand, III, Chapter 13 Trustee for the Middle District of Tennessee

In re Pena, 456 B.R. 451 (Bankr. E.D. Ca., Sept. 9, 2011) (Lee)

A secured creditor in a Chapter 13 case is not automatically entitled to recover unclaimed payments it was owed under a Chapter 13 plan by simply establishing its status as holder of the original proof of claim.

Case Summary

The Debtors’ Chapter 13 plan proposed to maintain payments and cure a default on a mortgage owed to BAC Home Loans Servicing (later Bank of America). Bank of . . .

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