Chapter 13 Bankruptcy Agreement

CHAPTER 13 BANKRUPTCY AGREEMENT

This Chapter 13 Bankruptcy Agreement (the "Agreement") is entered into between Debtor Name: and Creditor Name: regarding treatment of Creditor's claim in the Chapter 13 case filed in the United States Bankruptcy Court for the jurisdiction of: , Case Number: .

RECITALS

WHEREAS, Debtor filed a voluntary petition for relief under Chapter 13 of the Bankruptcy Code on (the "Petition Date").

WHEREAS, Creditor asserts a secured claim against collateral described as: in the aggregate amount of $ as reflected in Creditor's proof of claim.

WHEREAS, the Parties desire to set forth the treatment of Creditor's claim and respective rights and obligations in order to facilitate confirmation of Debtor's Chapter 13 plan and to avoid unnecessary litigation.

NOW, THEREFORE

In consideration of the mutual covenants contained herein, and other good and valuable consideration, the Parties agree as follows:

1. DEFINITIONS

For purposes of this Agreement, the following terms shall have the meanings set forth below: "Allowed Claim" means the portion of Creditor's claim allowed by final order of the Bankruptcy Court and "Plan" means Debtor's Chapter 13 plan as filed and as may be confirmed or modified.

2. ACKNOWLEDGMENT OF CLAIM

Creditor acknowledges that a proof of claim has been filed asserting a claim in the amount of $ and that Creditor's secured portion is $. Subject to paragraph 3 below, the Parties stipulate that the Allowed Claim will be treated as set forth in this Agreement.

3. TREATMENT OF SECURED CLAIM

Creditor's Allowed Secured Claim shall be paid as follows: (a) Prepetition arrearage in the amount of $ shall be cured through Debtor's Plan by periodic payments of $ per month commencing on the effective month of the Plan; (b) Postpetition regular monthly payments of $ shall be paid through the Plan or directly to Creditor as provided in the confirmed Plan.

4. INTEREST AND ATTORNEY FEES

Unless otherwise ordered by the Bankruptcy Court, interest on the Allowed Secured Claim shall accrue at the rate of per annum on the secured principal balance for the duration of the Plan. Creditor shall be allowed reasonable prepetition attorney fees of $ if supported by contemporaneous billing and allowed by the Court.

5. ADEQUATE PROTECTION

To the extent required by the Bankruptcy Code, Debtor shall provide adequate protection in the amount of $ per month pending confirmation. Such payments shall be treated as interim adequate protection and credited against the Allowed Secured Claim upon application by Creditor and approval of the Bankruptcy Court.

6. SURRENDER OR REINSTATEMENT

If Debtor elects to surrender the collateral described above, Debtor shall surrender the collateral no later than . If Debtor elects to reinstate and maintain the loan, the Parties agree that upon full performance of the Plan the loan will be reinstated free and clear of any prepetition arrearage claim extinguished by the Plan.

7. DEFAULT

A default under this Agreement shall occur if Debtor fails to make any agreed Plan payment to Creditor or Trustee within days of the due date and such failure continues for a period of days after written notice. Upon a material uncured default, Creditor may seek relief from the Bankruptcy Court in accordance with the Bankruptcy Code and applicable rules.

8. MODIFICATION

This Agreement may be modified only by a written amendment signed by the Parties and approved by the Bankruptcy Court. No course of conduct or failure to enforce any right shall constitute a waiver unless reduced to a written instrument signed by the waiving Party.

9. NOTICES

All notices required under this Agreement shall be in writing and shall be deemed effective upon personal delivery or three (3) business days after deposit with the United States Postal Service, postage prepaid, addressed to the notice addresses provided above or to such other address as a Party may designate in writing.

10. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction of the Bankruptcy Court in which the Chapter 13 case is pending, except to the extent preempted by applicable federal law.

11. ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings, and agreements, whether written or oral, relating to such subject matter.

12. SEVERABILITY

If any provision of this Agreement is determined to be invalid, illegal, or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect and shall be construed so as to effectuate the Parties' intent to the fullest extent permitted by law.

13. COUNTERPARTS

This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Signatures transmitted by facsimile or electronic image shall be deemed originals for all purposes.

14. AUTHORITY TO EXECUTE

Each Party represents and warrants that the person signing below is authorized to execute this Agreement on behalf of such Party and that execution and delivery of this Agreement and performance of the obligations hereunder have been duly authorized.

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