|Title||Memorandum Opinion in re Ford|
Michelle M. Harner
Chapter 13 of the U.S. Bankruptcy Code provides a financially-distressed individual with an opportunity to catch her financial breath, assess her financial obligations, and structure a repayment plan to satisfy, at least in part, her obligations to creditors. This scheme benefits both the debtor and her creditors; it dedicates funds to pay creditors’ claims over a period of time and then provides the debtor with a discharge of any remaining obligations upon completion of the plan payments. A debtor may use the chapter 13 process to address most kinds of defaulted debt obligations, including prepetition arrears on her home mortgage or real property taxes. In the context of these longer-term or ongoing obligations, the chapter 13 plan typically does not satisfy all of the debtor’s present and future obligations. Rather, the focus of the plan is to cure arrearages and reset the debtor’s relationship with that creditor.