Failure to Pay According to Plan Does Not Relieve Debtor From Responsibility in NJ
- October 15, 2012
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In a New Jersey Bankruptcy, the Debtors reorganized under a plan but failed to pay fees approved as part of the plan. Following the effective date of the approved plan, creditors discovered some cash budgeted for fees under the plan had not been paid. The district Court held that the fees are an administrative expense and necessary condition of the confirmation of the plan. The reorganized debtors could not be excused from payment of the obligation simply because the discharge had occurred. This blog is for informational purposes only and in no way intended to replace the advice of an attorney regarding your specific matter. If you are a debtor or creditor in a bankruptcy matter, you should consult an experienced bankruptcy attorney immediately in order to protect your rights. For more information on foreclosure, bankruptcy or other consumer debt related matters in New Jersey visit TheNJBankruptcyAttorney.com.