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Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 30902
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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While I was in Bankruptcy in NC the automatic stay was continued

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While I was in Bankruptcy in NC the automatic stay was continued but I had to pay money to the bank. I believe they called these payments "protection Fees?" is this the law/statute? and where does that money get applied? Principal or interest?

Kirk Adams : Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney. Thanks for your question. I'll be glad to assist.
Kirk Adams : I think you're talking about "adequate protection" payments. These are payments outlined in 11 USC 361:
Kirk Adams : Basically, these payments are required in order to defeat the depreciation that is occurring to the collateral that you are keeping to prevent the creditor from being put in a worse position than it would be if the collateral were turned over to the creditor for liquidation.
Kirk Adams : These payments are essentially to ensure that the creditor is adequately protected during the term of the bankruptcy.
Kirk Adams : a
Kirk Adams : As for how the payments are applied, they're generally paid as the note provides.

Thank you.. Excellent!

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