Heavy Hitters Recommend

Include the terms of an agreed loan modification in the Chapter 13 plan, John Rao of NCLC suggested at last week’s NACBA convention.

In light of the Supreme Court’s decision in Espinosa and the notorious record keeping practices of the servicers, ┬áinclusion in the plan may cement the benefits of the modification.

Where the plan has been confirmed prior to the modification, Rao recommended a modification of the plan to incorporate the terms of the mod.

Image courtesy of Wikimedia Commons.


  1. I think you linked to the wrong Espinoza case. Yours points to Espinosa v. Florida (a criminal case). I think you were referring to the case about student loans discharged in Chapter 13 without an adversary proceeding because of a failure to object to the Plan by the lender. Here is a link to that case: http://www.supremecourt.gov/opinions/09pdf/08-1134.pdf

    • Anonymous says

      Good call. I was balancing a netbook on my lap in court waiting for my
      turn. I appreciate the heads up.