Posted Oct 21, 2019

Creditors need to review all of the debtor’s proposed Chapter 13 plans since it will trump even explicit prohibitions in the Bankruptcy Code to noticed parties. Under the circumstances, the Bankruptcy Court here in the Southern District of Florida West Palm Beach Division found that Wells Fargo was “provided with notice reasonably calculated under all the circumstances to apprise [Wells Fargo] that its status as a secured creditor was being challenged.” Nationstar Mortg., LLC v. Iliceto (In re Iliceto), 706 Fed. Appx. 636, 642 (11th Cir. 2017) (applying Espinosa in the claims objection context and explaining that “Espinosa controls our decision”). “The Court explained that the Supreme Court’s decision in United Student Aid Funds, Inc. v. Espinosa, 559 U.S. 260 (2010), holding that a confirmed chapter13 plan is binding on all parties in interest with adequate notice, even if the plan violates the Bankruptcy Code and/or the Bankruptcy Rules, displaced the Eleventh Circuit’s earlier decision in Universal Am. Mort. Co. v. Bateman (In re Bateman), 331 F.3d 821 (11th Cir. 2003), which held that the anti-modification provision of section 1322(b)(2) prevails over the binding effect of a confirmed plan under section 1327(a)). ” Case Number: 13-25698A, Judge Name: EPK, Case Name: CORALEE EDWARDS, Sign Date: 08/01/2019, Cite: 604 B.R. 417.