Insurance proceeds generated due to a totaled car treated under the “hanging paragraph” of 1325(a) covers the entire claim; interest, however, is not recalculated even though it was a higher rate than the interest paid under the plan. (Hanan) In re Pagan, 638 B.R. 887 (Bankr. E.D. Wis. Jan. 24, 2022)
Bankruptcy judges have been overheard saying that it seems an unwritten rule that every Chapter 13 debtor must experience an auto accident sometime during their case. Robin Pagan certainly fit the pattern.
When Ms. Pagan . . .
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