Can my Houston chapter 13 plan "vest" or put unwanted property in my mortgage company's name?


While it has not been universally approved by all courts yet, we recently proposed such a plan, and it was approved here in the Houston Division of the Southern District of Texas.

Section 1322(b)(9) of the U.S. Bankruptcy Code specifically states that a chapter 13 plan can "vest" property in another entity, such as a mortgage company. There is no specification that they consent to receive the property, as would be necessary if you just deeded the property to them.

J Thomas Black
Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization