La Jolla is a seaside resort community of 42,808
residents within the city of San Diego, California. La
Jolla borders Pacific Beach to the south and extends
north to Torrey Pines State Reserve and Del Mar,
California. Along the way it encompasses neighborhoods
like Bird Rock, Windansea, The Village of La Jolla , La
Jolla Shores, La Jolla Farms, Torrey Pines, Mount
Soledad and La Jolla Village (including La Jolla Village
Square). Interstate 5 forms La Jolla's man-made border
to the east, with the exception of some University of
California, San Diego and commercial property east of
I-5 and north of La Jolla Village Drive, which is also
part of La Jolla.
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Chapter 13
Stopping Foreclosure
Long-term debts: The plan may provide for the curing of any default within a reasonable time and the maintenance of payments, during the period that the case is pending, on any long-term secured or unsecured debt for which the final payment is due after the final payment required by the Chapter 13 plan. Bankruptcy Code §1322(b)(5). This section, by specific statutory authorization, frequently is applied with respect to claims secured solely by the principal residence of the bankruptcy debtor, notwithstanding the exception contained in Bankruptcy Code section 1322(b)(2) concerning non-modification of such home mortgages.(1)
Comment: In most jurisdictions, the right to
cure a default exists
even alter the creditor has accelerated the debt and obtained a
foreclosure judgment, but only up until the time of an actual
foreclosure sale. However, in states where a mortgage becomes merged
into the foreclosure judgment, some courts have held that the right to
cure terminates upon the entry of a foreclosure judgment. In re Roach,
824 F.2d 1370 (3d Cir. 1987)
(2) "Reasonable time": What constitutes a reasonable time to
cure a default depends on the circumstances of the particular case. Some
of the factors that the court is likely to take into account include:
(3) (i) the amount and reason for the arrearage; (ii) the availability of
the debtor's discretionary income to cure the default; (iii) whether the
bankruptcy debtor is putting forth her best effort to cure the default; and (iv)
the bankruptcy debtor's ability to meet the obligations of the plan and to continue
current payments on the installment obligations.
Interest on Arrearages
Although the courts are split, the better rule is that, unless provided for in the contract or required under non-bankruptcy law, a mortgagee whose only collateral is the bankruptcy debtor's principal residence is not entitled to receive interest on the arrearages when a Chapter 13 debtor cures a default and reinstates the mortgage. Thus, while the mortgagee ordinarily is entitled under the contract to receive accrued interest on the unpaid principal, he may not receive interest on the portion of the unpaid installments that constitute interest. Landmark Financial Services v. Hall, 918 F2d 1150 (4th Cir. 1990)La Jolla, California
The Pacific Bankruptcy Center assists the residents of La Jolla, California in filing for relief under the United States bankruptcy code. We are a debt relief agency
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