Yes, this is helpful. The only question I still have is about the nullifying of the default penalties. I don't believe the response answered the question if "curing" the default (on a mortgage in this case) entitles the debtor to nullify default penalties. For example, the note states that if the borrower "defaults" within the 1st 7 years of the loan, they are hit w/ a pre-payment penalty. The language of the case law below sounds like it is nullified, just as default "interest" would be.
Although “cure” is not defined in the bankruptcy code, “curing a default commonly means taking care of the triggering event and returning to pre-default conditions.” In re Frazer, 377 B.R. 621 Bankr (2007) citing In re Entz-White Lumber & Supply, Inc. 850 F.2d 1338, 1340 (9th Cir. 1988).
Di Pierro v. Taddeo (In re Taddeo) 685 F.2d 24, 26-27 (2d Cir. 1982).
Additionally, the power to “cure” the default under the bankruptcy code authorizes a plan to nullify all consequences of default, including avoidance of default penalties, such as, (but not limited to), a higher interest rate. See In re Entz-White 850 F.2d at 1339. Di Pierro v. Taddeo (In re Taddeo) 685 F.2d at 24 (2d Cir. 1982)
Trying to object to a proof of claim in a ch. 13 bankruptcy where a mortgage deed of trust has attempted to accelerate the note, by claiming the full amount of the loan balance is required to cure. Also trying to object to default interest, default penalties that the case law appears to allow a debtor to nullify as part of the right to "cure" the default.
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