MenuBasically, adequate protection payments are early-case disbursements made by the chapter 13 trustee from funds the debtor as paid to the trustee, which are directed towards holders of car loans and other certain secured claims on personal property. The theory behind these small payments is to protect the lender from depreciation while the case is pending.
Chapter 13 Disbursement
The debtor pays a chapter 13 plan payment to the standing trustee. From the funds on hand, the trustee makes disbursements to creditors according the plan, rule, and statute.
