MDK Client Alert: Updated 410A Form Requirement

A change to Official Form 410A is set to go into effect on December 1, 2023. The change is to provide for separate itemization of principal due and interest due in Part 3:  Arrearage as of Date of the Petition. It is not clear whether Column N (Accrued Interest Balance) will now need to be completed and it could be determined by individual jurisdictions.

The rationale behind the change is that under § 1322(e) the amount necessary to cure a default is “determined in accordance with the underlying agreement and applicable non-bankruptcy law,” it may be necessary for a debtor who is curing arrearages under § 1325(a)(5) to know which portion of the total arrearages is principal and which is interest.

For more information, please contact Adam Hall.