Q: confirmed plan impaired lender's claim. Lender agreed and approved confirmation plan. Can this be consider novation
A: If you are asking if the bankruptcy case is dismissed or converted, will the confirmation of the plan require that the lender accept the payments provided for in the plan, the answer is no. For example, if the confirmed plan is paying a lower interest rate and paying the value of the collateral, instead of the net or payoff balance on the loan and if the case is dismissed or converted, the loan status reverts to the pre-bankruptcy status. To reaffirm in a chapter 7, the creditor could require that you bring the loan current under its original terms before it agrees to the reaffirmation of the debt.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
