Bankruptcy

Massachusetts Bankruptcy Judge Endorses Hybrid Plan

By Nicholas Ortiz, Boston Bankruptcy Attorney

Massachusetts Bankruptcy Judge Frank K. Bailey recently endorsed a so-called hybrid Chapter 13 plan which proposed to modify a first mortgage on a multi-family home while, at the same time, extending the payment on the secured claim beyond the life of the plan. The Rhode Island Bankruptcy Court recently reached the same conclusion in a different case. In the Massachusetts case, in which I represent the debtor, there remain disputes between the parties on other matters and the case is unpublished. See in re Espada, Case No. 09-16519. However, Judge Bailey’s ruling is an important endorsement of hybrid plans which provide debtors with significant flexibility in proposing cramdown plans for underwater, multi-family homes.

Full post as published by Bankruptcy Law Network on January 31, 2010 (boomark / email).