Case Summary:
The Chapter 13 Debtors agreed to pay their mortgage lender $555.56 per month toward mortgage arrears. The parties memorialized this agreement in an agreed order signed by the Court. Five months after the order was entered, the Debtors objected to the lender’s proof of claim for mortgage arrears. The Trustee then began to withhold the monthly payment that would otherwise have gone to the mortgage lender, pending resolution of the objection. Before the objection was resolved, the Debtors voluntarily dismissed their case. The mortgage lender moved for disbursement of the withheld funds and the Debtors objected, contending that the monies should be paid to them or to other secured creditors, pro rata. The Court held that under its prior order, the monies should be paid to the mortgage lender. Section 1322(a)(3) required that all secured creditors be treated the same, and the other secured creditors had already received their pro rata shares.

Statute/Rule References:
11 U.S.C. § 1322(a)(3)
11 U.S.C. § 1326(a)(1)
11 U.S.C. § 1326(a)(2)

Key Terms:
Discrimination
Plan Payment
pro rata