If your client is close to losing a secured asset, such as a house or car, setting up adequate protection payments with the creditor may be the answer to saving their property. Adequate protection payments are used to satisfy creditor cries for immediate payments since claims in bankruptcy don’t start paying until the case is confirmed. In some cases, it could be months before a creditor will see a payment and for creditors who have been dealing with a delinquent account, this doesn’t sit well.

So, if there’s a creditor that’s pushing for relief from stay in your client’s case, bringing up the option of adequate protection payments may be enough for them to withdraw their motion for relief. Just know that creditors are typically a bit untrusting of a debtor to follow through on their commitment to pay, so you’ll need to draft a filing that outlines the conditions of the adequate protection payments.

Language for Adequate Protection

Depending on the complexity of the case, there’s no telling how long it will take for the case to get confirmed. That’s why it’s key to have the language reflected in your motion for adequate protection flexible so it can adjust with the ebb and flow of the case. You’ll need to include:

Motions can be complex in bankruptcy. That’s why Virtual Paralegal Services has a team of paralegals with years of experience who can handle bankruptcy issues. Let our experienced team of paralegals do the hard work for you so you can do more.

Contact us today to find out how we can help.