Note Investing No Win Situations

[Chris Seveney]

Wanted to share a recent no win situation. Have a borrower in BK and we filed post petition fees for proof of claim and a plan objection (since they originally did not include property in BK). Now the defense counsel has requested a reduction in the fees we are charging or they will object to the plan. If they object it will cost me $500 to file against the objection or just reduce it by $500. 

Either way we lose. This has also been a loan in BK for over a year without a plan approval. 

[Chris Seveney]

@Mike Baxter

Payments are being made to the trustee but since the plan has yet to be approved the trustee has not released any.

Been down this road before where if they object and we object it will be another 6+ months before plan gets approved.

They may not win on objection but I would then have to pay attorney fees and the time to continue to play the game of ping pong.

I have been down this road a dozen times and in most instances it costs more to fight

Just wanted to highlight this as it’s a situation where sometimes tou have to give in to save $