Payments made directly by the debtor to the mortgagee are not “payments under the plan,” within the meaning of section 1328 and the debtor’s failure to make those payments are not cause for dismissal without discharge. In re Gibson, No. 12-81186 (Bankr. C.D. Ill. March 5, 2018).
Bryan and Holly Gibson made all payments in accordance with their five-year chapter 13 plan, and the trustee filed the notice of payment completion. Mortgage creditor, PNC, agreed that the Gibsons were current on their first mortgage and had paid the arrearage on the second mortgage through the trustee. However, it chose that moment to complain that, as of the beginning of the plan, the debtors had made none of the post-petition direct payments on their second mortgage. On the basis of that default, the trustee moved to dismiss under section 1307(c)(6). Read More
