In re Colvin, 57 B.R. 299 (Bankr.D.Utah)
PUBLISHED
Second lienholder on debtors' primary residence moved for relief from stay because debtors' confirmed chapter 13 plan did not include payment of creditor's postpetition attorney's fees. The bankruptcy court had initially denied all postpetition fees, which decision was reversed by the district court's holding that an oversecured chapter 13 creditor is entitled to postpetition fees under 11 U.S.C. § 506(b). On remand, the bankruptcy court allowed all of creditor's claimed fees and costs. However, debtors failed either to pay that amount or to amend their plan, which caused creditor to file its motion for relief. The court held that 11 U.S.C. § 1322(b)(2) allows debtors to cure defaults, but also requires that the rights of mortgage lienholders be preserved. Therefore, chapter 13 debtors must pay creditor's arrearage claim, plus attorney's fees, under their plan in order to return the parties to their pre-default condition. Debtor's were given an opportunity to amend the plan, or the court would grant creditor's motion for relief.