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Negotiating Plan Confirmation with Secured Creditors – Issues Involving Balloon Payments and Other Mortgage Loans Subject to Modification Under § 1322(c) – Part 3

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By David Cox,1 Cox Law Group, PLLC (Lynchburg, VA)

III. Providing for the Secured Mortgage Claim, as Modified.

  1. A. Does the requirement of § 1325(a)(5)(B)(iii) for equal monthly payments permit the Debtor to propose a balloon payment in the payment of the creditor’s claim?
    1. Equal Monthly Payments Required By § 1325(a)(5)(B)(iii) Does NOT Permit Debtor To Propose A Balloon Payment. This is the majority position.
      1. Interest Only Payments Then Balloon Violates . . .

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