Surrender of Collateral in a Plan- What Is the Court to Do if the Debtor Doesn’t Follow Through?

By Tammy E. Stickley and Francis J. DiCesare, Staff Attorneys for Margaret A. Burks, Esq. Chapter 13 Standing Trustee (Cincinnati, OH)

In a media age in which people expect to be told when “spoilers” are ahead, this summary needs no such warning. Courts have little patience for debtors who surrender collateral – especially real estate – then oppose the foreclosure of collateral in state proceedings. The interesting question isn’t whether the creditor will get the collateral in the end, but rather where the dispute is fought.

Perhaps it should also be expected that instead of trying to convince a . . .

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