Adequate Protection Orders (APO) for BK 13
I recently had two successes with Adequate Protection Orders for borrowers in Ch 13 BK. The APO is another way to deal with a borrower's delinquency in their BK plan when it negatively affects a creditor.
If a borrower is in default under their plan (delinquent in post petition payments or failure to pay for un escrowed taxes or insurance), you can file a MFR. However, a lot of courts are lenient and will give the debtor extra chances. You might go through added time and expense to try to get relief, only to get shut down by the judge.
I look at APOs as settlement agreements between creditor and debtor. Instead of taking the chance at a MFR hearing, which could go either way, both sides agree on a remedy to the default.
For the debtor, he or she doesn't run the risk of relief being granted at the hearing and he or she gets another chance to complete the plan.
For the creditor, you avoid the same risk of losing in court. If the debtor completes the APO, generally, they've fixed the problem (caught up in post petition payments or paid delinquent taxes). If the debtor fails, the creditor gets relief without having to go to a hearing.
In two of our cases, the debtors failed to perform on the APOs, which resulted in getting relief without having to go to a hearing.
Just another tool to deal with loans in BK :)