When purchasing a home, foreclosure may be the last thing on your mind, but sometimes situations occur that put you in jeopardy of losing your home. Job loss, mounting debt, loss of ability to work, or even divorce impact many homeowners’ ability to make their mortgage payments, and eventually find themselves in foreclosure. What Does Foreclosure Mean? Foreclosure allows a …
Domestic Support Contempt Actions During Chapter 13 Bankruptcy
Once a bankruptcy case is filed, the bankruptcy automatic stay stops creditor collection action and provides the debtor some temporary breathing room in order to restructure personal finances. There are limits to this protection, however. One of the most common exceptions during a Chapter 13 bankruptcy case concerns collection and enforcement of domestic support obligations (DSO), such as child support …
Lien Stripping in Chapter 13 Bankruptcy
Section 506(a) of the Bankruptcy Code separates the debtor’s obligations into two general categories or “claims”: secured claims and unsecured claims. Secured claims are obligations in which payment is guaranteed (or “backed” or “secured” or “collateralized”) by property. Section 506(a)(1) provides that a secured creditor’s claim is “a secured claim to the extent of the value of such creditor’s interest …
Chapter 13 Bankruptcy
A Chapter 13 bankruptcy case is primarily used to repay all or some of an individual’s debts. It is also known as a debt adjustment case, or a “wage earner’s plan.” Chapter 13 can stop a foreclosure or repossession and allow the individual time to make payments over three to five years, often even over the objection of a creditor. …
File a Proof of Claim in Your Chapter 13 Case
Once the Chapter 13 bankruptcy plan is confirmed, the trustee will pay allowed claims. The first step for a creditor to obtain an allowed claim is to file a proof of claim in the case. But Section 501(c) of the Bankruptcy Code also allows the debtor to file a proof of claim if “a creditor does not timely file a …
Post-Petition Debts in Chapter 13
A lot can happen during the three to five years of a debtor’s Chapter 13 repayment plan. Even though the Chapter 13 trustee forbids the use of credit during the repayment period, the trustee is powerless against life. To paraphrase Forrest Gump, “Stuff happens.” Post-Petition Tax Debts One of the most common post-petition debts that happen during Chapter 13 bankruptcy …
Debts that are discharged in Chapter 13, but not in Chapter 7
Some debts are discharged at the end of Chapter 13 case which cannot be discharged in a Chapter 7 bankruptcy. Chapter 13 is a payment plan bankruptcy, and creditors are repaid over three to five years. That’s a long time for a debtor to remain in bankruptcy, so Congress has placed a few “carrots” to entice individuals to file Chapter …
Tax Refund Anticipation Loan during Chapter 13 Bankruptcy
A Chapter 13 bankruptcy is a three to five year commitment between the debtor, his attorney, the trustee, and the bankruptcy court. This relationship does not stop once the debtor’s proposed repayment plan is confirmed by the court. The debtor is expected to cooperate with the trustee’s requests and the requirements of the bankruptcy throughout the case. In a Chapter …
What is a Regular Income in Chapter 13?
Section 109(e) of the Bankruptcy Code sets three basic eligibility requirements for a Chapter 13 debtor: The debtor must be an “individual.” For bankruptcy purposes, an individual is a subset of a person, and is distinct from a partnership or a corporation. See 11 U.S.C. §101(41). Only real live human beings (“individuals”) are allowed to file Chapter 13 bankruptcy. The …
FAQ for Your First Chapter 13 Plan Payment
Chapter 13 bankruptcy cases are fraught with traps. In fact, statistics show that only one in three cases ends with a discharge. This high failure rate is attributable to many causes, but a Chapter 13 debtor can increase his or her chances for attaining a discharge by following one simple rule: pay the trustee. When do I start paying the …
