“Clogged” Conduit – Cannot Constitute Relief from Stay
Posted onBackground: Debtor Filed a Chapter 13 Bankruptcy Petition. Plan provided for payments to the Trustee for the Mortgage pre-petition arrearages. Trustee would act as a conduit to make the payments to the Lender. Lender filed post-petition relief from the automatic stay since the Debtor was $11,500 in post- petition arrearages. Debtor learned of this when […]