Adequate Protection Payments in MO 13

If you are filing a Chapter 13 and you are going to run the ongoing house payments through the Plan, analyze how quickly you think you are going to be confirmed. The Trustee will NOT distribute payments unless and until you are either confirmed or a Motion for Adequate Protection has been approved AND a Proof of Claim has been filed.

So if you are six months down the road and the Plan has not been confirmed and you have not filed a Motion for Adequate Protection you are more than likely going to have to increase your Plan payments because more will be due and owing on the account. Remember the interest and late fees keep accruing until the Trustee releases the funds.

So moral of the story make sure POC is on file within 30 days and hit the creditor up for a joint motion for adequate protection payments so that money can be released straight away.

Rachel Lynn Foley, Kansas City Missouri Bankruptcy Attorney