Consumer Bankruptcy Journal Summer 2017 - Page 39

Direct Payments to Mortgagee are “Payments under the Plan” “A chapter 13 debtor’s direct payments to a secured creditor pursuant to a ‘cure and maintain’ plan are ‘payments under the plan’ for purposes of § 1328(a), and a debtor who fails to make such payments is not entitled to a discharge under 11 U.S.C. § 1328(a).” In re Coughlin, No. 11-76202 and In re Sangamaya, No. 12-71109 (Bankr. E.D. N.Y. June 15, 2017). Coughlin was before the court on the trustee’s motion to vacate the discharge order which was entered after the trustee had filed the Certification of Completed Plan, the Coughlin 3002.1 Notice, and her Final Report and Account, and after the creditor had notified the court that Denis Coughlin was behind on his direct mortgage payments and filed for relief from stay. The Sangamaya case was before the court on the debtors’ motion to modify which they filed with one week left on their 60-month plan and in which they sought to surrender the property after they defaulted on their direct payments to the mortgagee. The court began with the threshold question of whether payments on a debt made outside the plan are “payments under the plan” within the meaning of section 1328(a). The court found guidance in Rake v. Wade, 508 U.S. 464 (1993), where the Supreme Court interpreted section 1328(a)’s provision that a court shall grant discharge to a debtor who has made all payments under the plan to the extent that the payments are for debts “provided for by the plan.” The Ra R6W'BfV@FBFV'B2( &fFVBf.( vVFP( W2&f6f"( ( FV2vF( Ц"( &VfW'2F( FRFV'BFV'BFBFPFV'F"2FVBF( 7W&RBF( ЧVFW"6V7F3#""R2( &fFV@f"VFW"FR( FR6VvƖ6W'@w&VVBvF7B&R6W'G27V60W76W"bv6&RW76W"cSPb( #C"#C2WF6"#bF@fRƖVB6֖"&V6rFFP&6R( VG2VFW"FR( F6VFRVG2FRF&V7Fǒ'FPFV'F"FFR7&VFF"vV@66Fr66W27V62&6bd6&B6W'g2Sc"R2c#FR6W'BfVBFB&V6W6RFV'F.( 0VG2&R&6VB6PW72WV6W2vW&RFV'F"FVGV7G06W'FWV6W2g&FB67VF'WBf2FRFRVG2F@W7FgFRWV6RFRFV'F"0( W76VFǒ6֖rFVGV7FFv6U2BVFFVB( FP6W'BFW266VFVBFB'FvvPVG2BF&V7Fǒ'FRFV'F"FFR'FvvVR7W&RBF&R( VG2VFW"FR( Чv6W7B&R6WFVB&Vf&RFPFV'F"2VFFVBFF66&vRVFW 6V7F3#आfr&V6VBF266W6FP6W'BGW&VBFG2VffV7BFRVVPf7G2b&FbFR66W2&Vf&RBFWFW&֖rvWFW"B6VBf6FPFRF66&vR&FW"VFW&VB6VvƖFR6W'BfVBB6VBBF66&vP&Rf6FVBvW&RBv2'FV@F&Vvg&VBBFR&WVW7Fr'GFBBrbFRg&VBVFgFW"FPF66&vRv2w&FVB"VFW"'VPc"vW&RFRF66&vR&FW v2&W7VBb( ֗7FRGfW'FV6R7W'&6R"W7W6&RVvV7B( FP6W'BfVBFB2"6VvƖ@BFRf6R&W&W6VFF0F2VG2FRW7Ff6Ff"f6FrG2F66&vR&FW"VFW 6V7F3#Rv2B&W6VB&V6VBFB&"FFRF66&vP&FW"FRr&Vv&FrvWFW VG2FRF&V7FǒF7&VFF'0&R( VG2VFW"FR( @B&VV&W6fVB"v2FR77VPbvWFW"F66&vR&Rw&FV@gFW"7&VFF"2fVBF6PVFW"'VR3"rFBFRFV'F 2&VBVG2FW&Vf&RFP6W'BFBBR6W&6W'&" ֗7FRbrw&FrF66&vR2VFVB7GVFVBBgVG22bW76SSR2#c#FPVVBf"fƗGVFvVG27W'FV@fFrFB"6VvƖ( 2F66&vP&FW"6VBB&Rf6FVBख6vFR77VRv2vWFW FRFV'F'26VB&RW&֗GFVBFPfvVVbFV"FFg@7W'&VFW"FV"&W'GVFW"6V7F3#gFW"FWfVBFRFV F&V7BVG2FFR'FvvVR&V6W6RFRFv2FR& FFRW&FbFRƖ6&P6֗FVBW&BFW'v6R6ƖV@vFFR&WV&VVG2f"Ff6FBv2B7V&V7BF&V7F'FPG'W7FVRFR6W'Bw&FVBFRF6VvƖ6v&"T@VR#rGGwwr6'&2&r&r#rrbF&V7BVG2F'FvvVR&RЧVG2VFW"FRGF6VB6VvƖ6v&"VBЦ֧VR#rgW'FW&&RFR6W'B&VV7FVBFPG'W7FV^( 2&wVVBFBFRF66&vPfVVFW"'VRc"&V6W6RFP&FW"v277VVBvRFf &VƖVbg&7Fv2VFrFR6W'@F766Fb67VW"&'WF7GF&W27VW"#p45TU"$%UD5U$3