(and Why Does it Matter to Your Clients?)

At a glance, a 1327 plan might seem better for your client-property re-vests in the debtor and after-acquired property never becomes property of the estate. But that also means it's not protected. A 1306 plan gives your client the full protection of the automatic stay throughout the bankruptcy, and provides easy access to remedies for stay violations, FDCPA and UDAP violations, and other causes of action that would otherwise require a separate filing and fresh filing fees. Max examines the benefits and pitfalls of 1306 plans, in both initial and subsequent filing cases.

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