May 23, 2012. Westchester County, NY. In court today at the White Plains Division of the Southern District HSBC was advised that because they failed to file a proof of claim that the debtor would only have to make adequate assurance payments for the term of the 5 year plan. Judge Drain stated that adequate assurance payments based upon the depreciation of the property over the five years of the Plan would be sufficient to fend off a lift stay motion. Accordingly, because the bank failed to grant a modification that was acceptable to the client they will only be able to receive modest payments for the life of the plan. This seems like an enormous error on their part. It's understandable that they missed filing a POC-mistakes happen; but to compound that mistake by failing to offer a modification is just foolish on their part.
Because of the number of matters our firm has on for each of the 13 calendars we tend to be in court all day for each of the Chapter 13 days in the month. Although it might seem like a waste of time, there is always something to learn.
We pride ourselves on being creative and tenacious for our clients. The goal of Bronson Law Office in Chapter 13 is not to punish the bank for the sake of punishing them, but rather to obtain the best modification possible for our clients.
If you have a bankruptcy related case, then contact our firm today.