U.S. Bankruptcy Court - District of Colorado

In re: Jackson, Case No. 09-15137EEB; In re Keate Case No 09-15769EEB
The two chapter 13 plans presented to the Court for confirmation contained language that has become new boilerplate "additional provisions" inserted into plans routinely in this district. In spite of no pending objections, the Court refused to confirm a plan that includes an additional provision purporting to strip liens on personal property (other than vehicles) without either identifying the specific property involved or the affected creditors, without any notice or separate motion, and without any grounds stated for avoidance of the liens. The Court held this provision fails to provide due process to lien holders. But the Court allowed other "additional provisions," establishing a procedure by which the debtors may determine if they have cured their mortgages and are current on their obligations before they emerge from chapter 13, holding these provisions do not impermissibly modify the rights of the mortgage holders.
Posted: 9/4/2009 7:32:38 AM

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