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Bifurcation of home mortgage: Although not all bankruptcy courts agree, the prevailing view at the appellate level is that the unsecured portion of an under-secured mortgage can be modified, since the mortgage is bifurcated [B.C. §506(a)] and only the secured claim is protected by section 1322 (b)(2). [In re- Hart, 923 F.2d 1410 (10th Cir. 1991))
c. Cure or waiver of default: The plan may cure or waive any default. [B.C. §1322(b)(3)
d. Order of payments: The plan may provide for any general unsecured claim to be paid concurrently with any secured claim or with any unsecured priority claim. [B.C. §1322(b)(4)]
e. Long-term debts: The plan may provide for the curing of any default within a reasonable time and the maintenance of payments, during the period that the case is pending, on any long-term secured or unsecured debt for which the final payment is due after the final payment required by the Chapter 13 plan. |B.C. §1322(b)(5)] This section, by specific statutory authorization, frequently is applied with respect to claims secured solely by the principal residence of the debtor, notwithstanding the exception contained in Code section 1322(b)(2) concerning non-modification of such home mortgages. (1) Comment: In most jurisdictions, the right to cure a default exists even alter the creditor has accelerated the debt and obtained a foreclosure judgment, but only up until the time of an actual foreclosure sale. However, in states where a mortgage becomes merged into the foreclosure judgment, some courts have held that the right to cure terminates upon the entry of a foreclosure judgment. In re Roach, 824 F.2d 1370 (3d Cir. 1987) (2) "Reasonable time": [§l 146] What constitutes a reasonable time to cure a default depends on the circumstances of the particular case. Some of the factors that the court is likely to take into account include: (i) the amount and reason for the arrearage; (ii) the availability of the debtor's discretionary income to cure the default; (iii) whether the debtor is putting forth her best effort to cure the default; and (iv) the debtor's ability to meet the obligations of the plan and to continue current payments on the installment obligations
Interest on arrearages; Although the courts are split, the better rule is that, unless provided for in the contract or required under non-bankruptcy law, a mortgagee whose only collateral is the debtor's principal residence is not entitled to receive interest on the arrearages when a Chapter 13 debtor cures a default and reinstates the mortgage. Thus, while the mortgagee ordinarily is entitled under the contract to receive accrued interest on the unpaid principal, he may not receive interest on the portion of the unpaid installments that constitute interest. (Landmark Financial Services v. Hall, 918 l;.2d 1 150 (4th Cir. 1990)
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