Home / Uncategorized / US Bankruptcy Code § 1322(b)(9) Operates in Conjunction with Code § 1325(a)(5) Allowing the Vesting of Title to the Debtor’s Mortage Holder

US Bankruptcy Code § 1322(b)(9) Operates in Conjunction with Code § 1325(a)(5) Allowing the Vesting of Title to the Debtor’s Mortage Holder

As reported by Robin Miller of CBAR, an Oregon Court affirmed a Chapter 13 plan that provided for the vesting of title to the debtors’ residential property in the holder of the first-priority mortgage on the property.

The Bankruptcy Court held that the plan provision was authorized by Code § 1322(b)(9), which states that a plan may “provide for the vesting of property of the estate, on confirmation of the plan or at a later time, in the debtor or in any other entity.” Nothing in the language of § 1322(b)(9), the court emphasized, requires the creditor’s consent.

While a Chapter 13 plan must also comply with Code § 1325(a)(5) in the plan’s treatment of secured claims, a vesting provision under § 1322(b)(9) is consistent with surrender of the collateral to the creditor under § 1325(a)(5)(C). In re Watt, — B.R. —-, 2014 WL 5304703 (Bankr. D. Or., Oct. 15, 2014) (case no. 3:14-bk-31295)