Extending the Automatic Stay and Increasing Revenues

We discussed the primary advantage of 1306 plans over 1327 plans in 1306 v. 1327 Plans - What's the Difference? In short, when property remains property of the estate, and newly acquired property becomes property of the estate, the automatic stay protects that property throughout the bankruptcy-not so in a 1327 plan. But the benefits of a 1306 plan extend even further, providing bankruptcy court oversight of claims and settlements and creating fee-generating events in circumstances that would normally proceed unchecked.

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