Chapter 13 Agreed Orders

If Motion for Relief is filed by a creditor in Chapter 13 bankrupcy case then the creditor is alleging that the debtor is delinquent on payments owed directly to them outside the Chapter 13 plan or debtor has fallen behind on bankruptcy plan payment to the Trustee. A motion for relief is generally filed by mortgage or auto creditors. These matters are generally resolved by entering into agreed order.

The agreed order will resolve the matter by debtor getting current, allowing arrears to be paid in Chapter 13 bankruptcy plan or providing set monthly repayments by debtor to the creditor. Once the agreed order is signed and entered with the court then the Chapter 13 debtor must remain current under the terms of the agreed order. If debtor falls behind on payments to the Trustee or creditor then a notice of default will be issued allowing 10 days for debtor the get current. If account is not brought current under the terms of the agreed order then a termination of the automatic stay will be filed.

In some cases, a motion for relief is filed against property that debtor intends to surrender. The creditor files the motion for releif is filed to allow the creditor to legally take possession of the property/auto. In this situation, then an unopposed agreed order is signed by debtor attorney and filed with court to terminate the automatic stay.

Finally, if you are in a Chapter 13 bankruptcy it is very important that you understand the terms of an agreed order being filed in your case. And it is necessary that post agreed order payment remain current. Once agreed order is signed and entered with court then there is no action that your Chapter 13 attorney can take to stop the termination of stay if you are delinquent and are unable to get current.

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