The Tale of Ms. Robinson’s Dismissal With Prejudice in Galveston Federal Court by Frivolous Lawsuit Lawyer

LIT : Summary of Underwater Loan and Repayment Plan

The debtor holds an underwater mortgage with a total secured debt of $724,119.69, while the property is valued at $548,600. As a result, the excess debt can be treated as an unsecured claim and is eligible for lien stripping in her Chapter 13 bankruptcy plan.

The specifics of the approved plan can be reviewed in the tab below (Amended plan, Doc. 48).

The repayment plan outlines a commitment period of 60 months, starting with monthly payments of $4,000 for the first year, which aligns with her disposable income of approximately $4,004.03.

This amount is sustainable based on her current financial situation. Starting in the second year, payments increase to $9,985 per month, reflecting anticipated future income increases.

While the initial payments are manageable, the success of the plan relies on the debtor’s ability to meet these higher payments in later months.

If the debtor fails to complete the plan, the stripped lien could revert to a valid secured claim, allowing the lender to pursue foreclosure or collection actions.

Overall, the plan seeks to balance current income with future financial expectations, aiming for successful debt resolution while addressing the underwater loan situation.

Based on the financial statements presented in the amended plan, LIT argues that the plan lacks realism and serves primarily as a temporary measure to divert scrutiny from attorney Clay Vilt, rather than genuinely assisting the debtor. It is evident that the approved plan hinges on the withdrawal of objections from Deutsche Bank and its counsel, as well as a judge willing to issue an order that he recognizes is not practical.

BANKRUPTCY JUDGE NORMAN’S ORDER

ORDER CONFIRMING CHAPTER 13 PLAN AND VALUING COLLATERAL PURSUANT TO 11 U.S.C. § 506

1.  The Court has considered confirmation of the Debtor(s)’ chapter 13 plan that was proposed on 9/17/24.

2.  All objections to the plan have been withdrawn or overruled.

3.  The Court has determined that the plan meets all of the requirements of §1325 of the Bankruptcy Code.

4.  Notwithstanding any estimate of the amount of a general or priority unsecured claim contained in the plan or in an order of the Court, the actual amount payable on priority claims will be the Allowed Amount of the priority claim and the actual proration for distribution on general unsecured claims will be based on actual Allowed Amounts of general unsecured claims.

5.  The value of the collateral for secured claims is in the amount set forth in the plan.

6.  The plan is confirmed.

Signed and Entered on Docket: 10/4/24.

A “Notice of Debtor’s Intention to Strip Lien” is a formal document used in bankruptcy proceedings. It informs relevant parties, such as creditors and the court, that the debtor intends to remove or “strip” a lien from a piece of property.

In bankruptcy, a lien is a legal claim or right against property used as collateral to secure a debt. When someone files for bankruptcy, they might be able to eliminate certain liens if the value of the property is less than the amount owed on the lien, or if the lien is considered unsecured.

This notice is typically part of a bankruptcy plan and is used to alert interested parties about the debtor’s plans to address the lien, often as part of a broader strategy to reorganize or discharge debts.