What is adequate protection and how and when is it paid?
Under BAPCPA, there are several manners in which a creditor may get payment before the plan is confirmed. Typically, these are called “adequate protection” payments because the creditor is receiving money on a monthly basis so their interest in the secured item is not diminished. Typically, the trustee will begin making adequate protection payments when a plan is filed that states payments will be made and after the creditor files a proof of claim. Assuming the plan and the creditor’s claim reflect the same information, the trustee will start disbursing payments. A creditor may also get adequate protection payments by filing a motion with the Court requesting payments. If the Court grants the motion, the trustee will disburse payments as required by the Court’s order. In some jurisdictions, you may be expected to make adequate protection payments directly to your creditors upon filing for bankruptcy protection. Whether the trustee makes adequate protection payments or you make the paym
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