Paying Creditors Directly in Chapter 12 Bankruptcy

Date
1995-05-05
Authors
Harl, Neil
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Abstract

Recent cases in the Sixth and Eighth Circuit Courts of Appeal have allowed debtors under Chapter 12 bankrutpcy to make payments directly to a creditor and avoid paying the trustee's fee. An earlier Ninth Circuit Court of Appeal case had held that a Chapter 12 bankruptcy does not authorize a debtor to make payments directly to creditors for claims modified by the plan in order to avoid paying the trustee's fee.

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