Secured Claims in a Chapter 13 Plan in the EDKY

Chapter 13 Trustee, EDKY: Trustee's Blog

In 2017, the court in this district adopted the so-called “national plan” with a few minor changes.  Part 3 of the chapter 13 plan form discusses treatment of secured claims, but it does not refer to payment of “allowed” claims.  Must I pay a secured creditor listed in the plan if no proof of claim has been filed by or on behalf of the creditor?

It is done in a minority of jurisdictions, but historically the majority rule (followed in this district) has been that a secured creditor must have an allowed claim in order to be paid under the plan.  It makes sense to pay only allowed claims in light of the 2017 amendment to Rule 3002 requiring secured creditors to file a proof of claim.  However, the plain language of the plan seems to follow the minority rule.

Some practitioners approached me a few weeks ago to express…

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