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What exactly is a pre petition arrear?

Portage, IN |

We filed for Ch 13 and are keeping our house and truck. We were 1 month behind on our truck paymeny when we filed. Truck company decided to be paid outside the plan and now they are trying to remove the automatic stay. We have been paying but now it has come up that the month we were behind was not included in the filings. There was an agreed entry stating any pre petition arrears would be paid thru the trustee as an administrative expense. Does that mean our past due payment falls into that category? The month we filed payment was put in as a claim so that on should be covered. Im just so confused and our attorneys are not being much help!

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Attorney answers 1


The pre petition arrearage is what was due and owing at the time of the filing, but not paid. So if the creditor filed a cliam for that amount and the plan specified that pre petition arrearage was to be paid through the plan the creditor should be bound by the plan. Please work with your bankruptcy attorney and you will be okay. Frequently there is a lot of litigation in bankruptcy cases and they can be confusing and frustrating.

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