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Recent Posts in Chapter 13 Bankruptcy

  • 7 Significant Benefits of Chapter 13 Bankruptcy

    Posted By Allmand Law Firm, PLLC || 22-Apr-2016

    Chapter 13 bankruptcy is a court-approved repayment plan allows debtors to pay back their debt obligations over a period of three to five years depending on their debt and income levels. The repayment plan allows debtors to make one manageable payment each month to their bankruptcy trustee, so there is no contact with creditors. For those who qualify for this option, filing under Chapter 13 is a ...
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  • What Bankruptcy Can & Cannot Do For Federal Tax Debt

    Posted By Allmand Law Firm, PLLC || 24-Mar-2016

    If you have federal tax debt, you may be wondering if filing for bankruptcy can do anything to help your situation. You may have even heard commercials offering the hope of eliminating tax debts in bankruptcy, but it’s actually not that simple. Most tax debts can’t be discharged by bankruptcy. And unfortunately, if you are being audited, a bankruptcy filing won’t stop the audit ...
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  • How Does The Automatic Stay Help Those Filing for Bankruptcy?

    Posted By Allmand Law Firm, PLLC || 28-Jul-2015

    Filing for bankruptcy can be an intimidating decision. But, did you know that there are various tools that are used to protect you during the process? In fact, one of the most beneficial tools for those filing bankruptcy is the automatic stay. This is a United States bankruptcy code law that does not allow creditors or debt collection agencies to take action or file lawsuits against debtors. This ...
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  • If I Am in Chapter 13 Bankruptcy Can I Keep My Tax Refund?

    Posted By Allmand Law Firm, PLLC || 31-Mar-2014

    If I Am in Chapter 13 Bankruptcy Can I Keep My Tax Refund? Chapter 13 bankruptcy is a structured repayment plan approved by the court that helps debtors make affordable monthly payments to creditors. The plan is based on income ability of the debtor with disposable income being another factor in how payments to creditors are established. A tax refund may be considered disposable income that could ...
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  • Debts You Must Pay in Chapter 13 Bankruptcy

    Posted By Allmand Law Firm, PLLC || 15-Jan-2014

    A Chapter 13 bankruptcy plan can help you get your finances back in order. As a court-approved repayment plan that restructures debts, you may be able to make reduced payments on obligations based on your income ability. Yet, there are certain debts you are required to pay as part of the agreement, including secured debts and priority debts. Chapter 13 is often filed by debtors looking to retain ...
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  • Can You Make a Vehicle Purchase in Chapter 13 Bankruptcy?

    Posted By Allmand Law Firm, PLLC || 20-Dec-2013

    Chapter 13 bankruptcy is a repayment plan that restructures debt obligations to help you make affordable payments each month. The plan is designed to help you get out of debt or help you catch up on debts you may have fallen behind on. Making a purchase in Chapter 13 such as a vehicle may be something you can complete, depending on your circumstances. A vehicle is an important necessity for many ...
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  • How Much Debt Is Required to Be Repaid in Chapter 13 Bankruptcy?

    Posted By Allmand Law Firm, PLLC || 19-Dec-2013

    Debtors considering Chapter 13 bankruptcy may want to know how much they are required to pay during the plan. Understanding what you will be required to pay will depend on several factors. Your monthly income, type of debt, and ability to make payments will have an effect on what you will pay. There are certain debts that may be required to be paid, with others being discharged at the end of the ...
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  • Can Chapter 13 Bankruptcy Help Me with Business Debt?

    Posted By Allmand Law Firm, PLLC || 5-Dec-2013

    If you own a small business and need help reorganizing your debts, Chapter 13 bankruptcy may be an option to consider. This chapter can help you develop a repayment structure based on income earnings, type of debts and expenses you have. There are a few factors to consider in helping you understand how the process works and meeting qualifications. Small businesses considered a sole proprietorship ...
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  • Can Chapter 13 Bankruptcy Help with Child Support Debt?

    Posted By Allmand Law Firm, PLLC || 6-Nov-2013

    Chapter 13 Bankruptcy and Child Support If you are behind on child support payments those payments are not eligible to be wiped out in bankruptcy. Child support payments are considered priority debts that a debtor will continue to be responsible for even after their case ends. But, Chapter 13 bankruptcy may help you get caught up on payments. If you have unsecured debts with you case, they may be ...
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  • When Chapter 13 Bankruptcy May Be a Better Option than Chapter 7

    Posted By Allmand Law Firm, PLLC || 6-Sep-2013

    Distinguishing differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy may be just the beginning in understanding which chapter will provide the best solution for your situation. Even if you meet qualifications to file Chapter 7, it may be more beneficial for you to file Chapter 13. In other words, you may give yourself more advantages in filing Chapter 13 than what is offered in ...
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  • Do You Have to Repay All of Your Debt in Chapter 13 Bankruptcy?

    Posted By Allmand Law Firm, PLLC || 2-Aug-2013

    Chapter 13 bankruptcy helps debtors reorganize debt obligations into an affordable 3 to 5 year repayment schedule. The amount you pay depends on a few factors such as your monthly income and the type of debt. Some debtors are under the impression that they must repay all of their debt under this plan. In many cases, this isn't true but certain debts may require you to pay what is owed. A ...
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  • Chapter 13 Bankruptcy: How Much Will You Pay Each Month?

    Posted By Allmand Law Firm, PLLC || 25-Jul-2013

    Monthly Payments For Chapter 13 Bankruptcy Debtors who are struggling to make payments may find Chapter 13 bankruptcy helpful for a number of reasons. For some, it helps them make their money stretch further while still being in good standing with their creditors. For others it helps them keep their property due to falling behind on payments. You get legal protection while making payments you can ...
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  • How Chapter 13 Bankruptcy May Reduce Your Principal Loan Balance

    Posted By Allmand Law Firm, PLLC || 30-May-2013

    Can Bankruptcy Reduce Your Principal Loan Balance? Did you know that Chapter 13 bankruptcy may help you reduce your principal loan balance on certain secured debts? Many consumers may not realize they'd qualify to have debt such as a car loan reduced in order to establish affordable monthly payments. The concept is also referred to as a cram down. Understanding potential benefits may give an ...
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  • Getting Debt Discharged in Chapter 13 Bankruptcy

    Posted By Allmand Law Firm, PLLC || 23-May-2013

    Many people who think about getting debt discharged may assume it can only be erased through Chapter 7 bankruptcy. In fact, Chapter 13 bankruptcy has the ability to not only discharge debt, but in some cases may help eliminate debt that is not eligible for discharge in Chapter 7. Meaning, you may be given a greater advantage in Chapter 13 when it comes to wiping out debt. When a discharge is ...
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  • How Debtors Benefit from Filing Chapter 13 Bankruptcy

    Posted By Allmand Law Firm, PLLC || 10-May-2013

    Chapter 13 bankruptcy is a court-approved repayment plan based on the debtor's ability to repay. While the plan is not for everyone, it offers different benefits that debtors may find useful depending on their personal situation. While the plan can last anywhere from three to five years, this aspect alone is enough to discourage debtors from filing. But, there are positive attributes to ...
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  • Understanding Income Eligibility for Chapter 13 Bankruptcy

    Posted By Allmand Law Firm, PLLC || 18-Apr-2013

    Income Eligibility for Chapter 13 Bankruptcy Chapter 13 bankruptcy is a repayment plan approved by the court. This can be a suitable option for debtors who want an affordable payment plan for their debt obligations based on what they earn. Yet, consumers may be under the impression that only earned wages or a form of employment is the only income that qualifies for this option. The main idea is ...
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  • How Long Does It Take to Complete a Chapter 13 Bankruptcy Repayment Plan?

    Posted By Allmand Law Firm, PLLC || 12-Apr-2013

    Completing a Chapter 13 Bankruptcy On average, a Chapter 13 bankruptcy repayment plan can last anywhere from three to five years. Yet, there are factors to consider in determining how long your case will last since each situation varies. The amount you pay is based on your monthly income, with similar factors determining the amount of time the debtor commits toward making payments. This is known ...
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  • 6 Most Common Questions Debtors Ask About Chapter 13 Bankruptcy

    Posted By admin || 11-Mar-2013

    Chapter 13 bankruptcy can sometimes be a better option than Chapter 7. Debtors may consider this option after negotiation attempts with their creditors fall through or when they need legal assistance in making payments they can afford. The following questions are often asked by debtors to help determine if the process can help their unique situation. What is Chapter 13 bankruptcy? Chapter 13 is ...
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  • How Does Chapter 13 Bankruptcy Deal with Unsecured Debt?

    Posted By admin || 30-Jan-2013

    Chapter 13 Bankruptcy and Unsecured Debt Chapter 13 bankruptcy is a repayment plan approved by the court. It helps debtors repay debt obligations within 3 to 5 years. There are certain debts that are required to be paid through this plan. The chapter is commonly filed by those wanting to keep property such as their home or vehicle while getting caught up on payments. Certain debts have higher ...
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  • Can a New Chapter 13 Bankruptcy Case Be Filed after Getting Dismissed?

    Posted By admin || 24-Jan-2013

    If you filed for Chapter 13 bankruptcy in the past and your case got dismissed, you may be able to file a new case. There are several factors that may need to be reviewed this time around. It is likely your situation has changed or is different from when you filed previously. Because of this, you should discuss the possibility of filing a new case with your attorney before proceeding. Usually, a ...
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  • In Chapter 13 Will My Tax Refund Be Collected Each Year I Am In Bankruptcy?

    Posted By admin || 9-Jan-2013

    During the duration of your Chapter 13 bankruptcy case you may be required to provide information about your taxes. This may simply involve forwarding a copy of your completed return to your trustee. Your trustee will know whether or not your tax refund will need to be collected. There are a few factors to consider when it comes to your tax refund in Chapter 13. For the most part it depends on ...
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  • Chapter 13 Bankruptcy: What Happens When You Fall Behind on Payments?

    Posted By admin || 3-Dec-2012

    Your Chapter 13 bankruptcy payment should be a priority each month and as a debtor, that is an important responsibility to uphold. This includes knowing when your payment is due and the amount. The repayment plan helps in getting finances back in order and upon obtaining approval, you make good on your promise to the court in keeping up with payments on time. If you feel you will not be able to ...
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  • Reasons Why Chapter 13 Bankruptcy Payments Increase

    Posted By admin || 30-Nov-2012

    Chapter 13 bankruptcy is a court-approved repayment plan that helps debtors regain control of their finances. Depending on outstanding debt the plan can last anywhere from 3 to 5 years. The payments are created based on the affordability of the debtor. Most debtors find payments scheduled in the plan to be more affordable than what they were paying before they filed. Sometimes debtors experience a ...
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  • Tips to Help Successfully Complete Your Chapter 13 Bankruptcy

    Posted By admin || 18-Sep-2012

    Completing Your Chapter 13 Bankruptcy Filing Chapter 13 bankruptcy may help you gain control of your finances. The filing is a collaborative effort including your attorney and/or trustee and the debtor. The process may seem tedious with preparation of documents and final reviews of financial information. While your legal representative tends to important responsibilities pertaining to your case, ...
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  • Can I Continue Contributing to a Retirement Account During Chapter 13 Bankruptcy?

    Posted By admin || 7-Sep-2012

    Retirement Accounts and Chapter 13 Bankruptcy Contributing to a retirement account such as a 401 (k) during Chapter 13 bankruptcy continues to be a challenging topic in federal court. There was a recent ruling by the Bankruptcy Appellate Panel of the 9 th Circuit that ruled debtors cease voluntary contributions during their Chapter 13 repayment period. Yet, it is possible you may still continue ...
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  • What Debt Can Be Discharged In Chapter 13 Bankruptcy?

    Posted By admin || 31-Aug-2012

    Chapter 13 bankruptcy allows qualifying debt to be discharged when your case ends. Chapter 13 may wipe away or eliminate certain debts not eligible for discharge in Chapter 7 bankruptcy. While certain debts must be paid in full, the amount paid toward outstanding debt depends on your income and other monthly expenses. Chapter 13 helps reorganize debt through a structured repayment plan approved by ...
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  • What Are My Options When I Can't Make My Payments in Chapter 13 Bankruptcy?

    Posted By admin || 2-Aug-2012

    Can't Make Your Chapter 13 Bankruptcy Payments? There are several options to review should you become unable to make payments as part of your Chapter 13 bankruptcy plan. Usually, the creditor or trustee may look to have your case dismissed, but the following options may be considered to help keep your case active: Get caught up on payments- If you fall behind due to a financial emergency you may ...
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  • What is a Confirmation Hearing in Chapter 13 Bankruptcy?

    Posted By admin || 26-Jul-2012

    Confirmation Hearing in Chapter 13 Bankruptcy Chapter 13 bankruptcy allows debtors to repay outstanding debt with a payment plan approved by the court. But before the debtor can begin making payments on the agreement, it has to be confirmed upon finalization. This means that parties associated with the agreement could object or make changes before confirmation. In Chapter 13, other parties are ...
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  • What is the "Good Faith" Requirement for Chapter 13 Bankruptcy?

    Posted By admin || 17-Jul-2012

    "Good Faith" Requirement for Chapter 13 Bankruptcy Chapter 13 bankruptcy allows you to repay debt obligations through an approved payment plan by the court. The "good faith" requirement is basically the debtor proposing they will make payments according to their payment schedule in "good faith" for the duration of the bankruptcy. When you file, you and your trustee will agree on what payments will ...
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  • Dealing with Income Changes in Chapter 13 Bankruptcy

    Posted By admin || 3-Jul-2012

    Income Changes in Chapter 13 Bankruptcy The purpose of Chapter 13 bankruptcy is to help debtors restructure outstanding debt by following a payment plan approved by the court. The payment plan is determined based on what disposable income is available after paying necessary living expenses. The trustee appointed to your case makes sure payments are received and forwarded to creditors. Chapter 13 ...
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  • Why Do People Choose to File Chapter 13 Bankruptcy?

    Posted By admin || 26-Jun-2012

    Chapter 13 bankruptcy allows debtors to repay creditors under a court-approved payment plan. The plan includes making scheduled payments that are often less than what the debtor was originally paying. The repayment plan has a 3 to 5 year payment period with creditors unable to pursue collection action against you. Whatever terms are set in the repayment plan, both the debtor and creditor are ...
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  • Most Common Questions about Chapter 13 Bankruptcy

    Posted By admin || 28-May-2012

    Chapter 13 bankruptcy helps consumers restructure their debt with a 3 to 5 year repayment plan. Chapter 7 bankruptcy may seem like the best chapter to file when seeking debt relief by getting debt eliminated or discharged. But debt relief can also be obtained in Chapter 13, even though the process is more complex than Chapter 7. Debt relief in Chapter 13 gives the consumer multiple advantages. The ...
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  • Common Reasons for Filing Chapter 13 Bankruptcy

    Posted By admin || 20-Apr-2012

    Reasons for Filing Chapter 13 Bankruptcy Chapter 13 bankruptcy helps reorganize debt obligations by creating a repayment plan that is completed within 3 to 5 years. The debtor makes payments on the plan based on their eligibility and income. Sometimes Chapter 7 bankruptcy is sought first by the debtor, only to find out they qualify for Chapter 13. While Chapter 7 is known for giving consumers a ...
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  • Can I Keep My Tax Refund if I File Chapter 13 Bankruptcy?

    Posted By admin || 2-Apr-2012

    Income Tax Refunds and Chapter 13 Bankruptcy Can I Keep My Tax Return in Chapter 13? Each case varies upon individual circumstances but your bankruptcy trustee may make the decision based on that status of your case. If you are current on your repayment plan, it's likely you'll be able to keep a refund up to $2000. It depends on the length of your plan and your overall financial situation. If you ...
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  • Debt Discharge Requirements for Chapter 13 Bankruptcy

    Posted By admin || 20-Mar-2012

    Discharge Requirements for Chapter 13 Bankruptcy If you think that the process of getting your debts discharged through a Chapter 13 bankruptcy can be a hassle, you are right - and wrong. With the help of a great bankruptcy attorney, debts re-arranged in Chapter 13 bankruptcies can be discharged rather quickly. However, there is no denying that there are obstacles that can trip up your journey ...
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  • Chapter 13 Bankruptcy: What Am I Obligated to Pay?

    Posted By admin || 5-Mar-2012

    What You are Obligated to Pay During Chapter 13 Bankruptcy Chapter 13 bankruptcy is a repayment plan that helps reorganize outstanding debt. The purpose of this filing is to create a payment plan that will help you handle debt over a certain time period. There are guidelines that should be met upon filing including meeting income requirements, providing necessary documentation to complete the ...
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  • What Happens if My Financial Situation Changes in Chapter 13 Bankruptcy?

    Posted By admin || 22-Feb-2012

    If you are in a Chapter 13 bankruptcy and you experience any reduction in your income, you may be able to file Chapter 7 bankruptcy under certain circumstances depending on your qualifications. There is a means test that can be taken to determine eligibility. The procedure for converting chapters may vary depending on what jurisdiction the filing will occur in. If your income changes while in a ...
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  • Chapter 13 Advantages You May Not Know About

    Posted By admin || 25-Jan-2012

    Advantages of a Chapter 13 Bankruptcy Many people feel that Chapter 7 bankruptcy has more advantages since it is known to give consumers a fresh start by discharging outstanding debt whereas a Chapter 13 bankruptcy allows you to reorganize your debt with a repayment structure over a three to five year period. But what some people don't realize is that Chapter 13 has advantages that may work for ...
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  • What You Should Know about Chapter 13 Bankruptcy

    Posted By admin || 19-Jan-2012

    Chapter 13 bankruptcy provides protection against further collection action and allows for debts to be restructured into a payment plan. The filing reorganizes debt to help a debtor pay it off within a set time period. At the end of the period, if there is an unpaid balance it may be discharged if the debt is eligible. Like Chapter 7 bankruptcy, it has the ability to give consumers a fresh start ...
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  • Avoiding Unpleasant Mortgage Surprises In Chapter 13 Bankruptcy

    Posted By admin || 23-Dec-2011

    For debtors with regular income, saving a home with Chapter 13 bankruptcy proves effective most of the time. However, there are some problems debtors may face at the end of their Chapter 13 bankruptcy. Below are a few suggestions on how to deal with the issues as they arrive: Mortgage Late Fees Technically, mortgage servicers are allowed to accrue late fees on a loan while a debtor is in Chapter ...
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  • Should You Borrow During Chapter 13 Bankruptcy?

    Posted By admin || 22-Dec-2011

    Borrowing Money During Chapter 13 Bankruptcy In the three to five year period of a debtor's Chapter 13 bankruptcy case, they may feel the need to borrow money. But a Chapter 13 bankruptcy debtor cannot borrow unless they have the bankruptcy trustee's permission. The first question a debtor needs to ask themselves is if it is prudent to borrow money during bankruptcy. Let's take a closer look: ...
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  • How To Qualify For Chapter 13 Bankruptcy?

    Posted By admin || 19-Dec-2011

    Qualifying For Chapter 13 Bankruptcy Qualifying for Chapter 7 bankruptcy occupies most of a debtor's concerns when considering their options; but filing Chapter 13 bankruptcy also has its own set of requirements. Let's take a look at a few: Businesses Need Not Apply Chapter 13 bankruptcy is designed for consumers only. This means that corporations, partnerships and limited liability companies are ...
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  • The Cost Of Chapter 13 Bankruptcy

    Posted By admin || 12-Dec-2011

    When filing for Chapter 13 bankruptcy, most debtors are concerned about how much it will cost them. Below is a breakdown of what Chapter 13 bankruptcy can cost a debtor. Chapter 13 Bankruptcy Costs Monthly Creditor Payments The monthly payments required to pay off debt is the base figure of any Chapter 13 bankruptcy cost. It's important to remember, that this figure is different for each debtor ...
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  • Tackling Mortgage Payment Troubles In Chapter 13 Bankruptcy

    Posted By admin || 6-Dec-2011

    When a debtor files Chapter 13 bankruptcy with a mortgage they may choose to keep their house and continue to pay the mortgage. However, because of the length of Chapter 13 bankruptcy cases, they may find themselves facing troubles paying their mortgage a few years down the line. If this happens there are a few options outside of dismissing the case or converting to Chapter 7 bankruptcy. Let's ...
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  • Your Chapter 13 Bankruptcy Case And Life Changes

    Posted By admin || 21-Nov-2011

    If you're filing Chapter 13 bankruptcy, it's possible that your life could change significantly during the course of three to five years. The possibility of change negatively impacting the ability to make payments is one of the fears that debtors have when considering Chapter 13 bankruptcy. The good news is that the bankruptcy code already addresses how these changes should be approached. Let's ...
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  • "Catching Up" On Debt Payments In Chapter 13 Bankruptcy

    Posted By admin || 7-Nov-2011

    The main benefit of Chapter 13 bankruptcy is that it allows a debtor to keep their assets while catching up on their debt payments. How Certain Debts Are Treated During Bankruptcy Below is a list of how certain debt payments and assets are treated over the course of Chapter 13 bankruptcy: Credit Cards While credit card debt is paid off either in full or partially over the three to five year period ...
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  • Should You Terminate a Chapter 13 Bankruptcy?

    Posted By admin || 12-Oct-2011

    A Chapter 13 bankruptcy is a court ordered repayment plan that helps filers establish plans that they can manage so they can stay on top of their debts and in some cases keep their homes and other priority items. A traditional Chapter 13 bankruptcy lasts for three years but they can be extended to five years. A lot can happen in the course of three to five years and you may suddenly discover that ...
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  • Take Care Of Yourself First In Chapter 13 Bankruptcy

    Posted By admin || 5-Oct-2011

    If a debtor files Chapter 13 bankruptcy, their disposable income must go to pay their creditors. However, the bankruptcy code allows certain deductions when calculating a debtor's disposable income. Insurance is one of several deductions that bankruptcy debtors have the right to take. Unfortunately, many debtors who are a pennywise and a pound foolish forgo these deductions to save cash in the ...
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  • Paying Off Secured Debts In Chapter 13 Bankruptcy

    Posted By admin || 22-Sep-2011

    Secured Debt in Bankruptcy Debtors filing Chapter 13 bankruptcy sometimes approach secured debt payment with confusion and trepidation. There are a lot of misconceptions about how secured debt is treated in bankruptcy and how the debtor is expected to repay secured debt through their Chapter 13 bankruptcy plan. Let's take a look at a few of the facts about secured debt in bankruptcy: Making A ...
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  • Lien Stripping In "No Discharge" Chapter 13 Bankruptcy Cases

    Posted By admin || 7-Sep-2011

    In a recent bankruptcy case involving a debtor who filed Chapter 13 bankruptcy within four years after receiving a Chapter 7 bankruptcy discharge, the bankruptcy court ruled that he had a right to strip the wholly unsecured junior mortgage lien. Typically, a debtor who files Chapter 13 bankruptcy within four years of receiving a Chapter 7 bankruptcy discharge is not allowed a discharge in their ...
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  • Protecting Co-Signers In Chapter 13 Bankruptcy

    Posted By admin || 25-Aug-2011

    If you're a debtor who has a secured loan with a co-signer, you may be concerned about how your Chapter 13 bankruptcy will impact the co-signer. This is especially important if that co-signer is a spouse or other family member who isn't part of the bankruptcy. Below are a few tips on how you can minimize or even eliminate the impact of your bankruptcy filing on your co-signer: Tip #1 - Discuss ...
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  • Three Reasons Why You Shouldn't Fear Chapter 13 Bankruptcy

    Posted By admin || 15-Aug-2011

    Why You Shouldn't Be Afraid to File Chapter 13 Bankruptcy Chapter 13 bankruptcy has become the dreaded type of bankruptcy that every debtor wants to avoid. It's unfortunate because Chapter 13 bankruptcy provides the type of flexibility and protection that many debtors who are fully employed need. Nevertheless, many debtors fear Chapter 13 bankruptcy and if they even suspect that they will be ...
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  • Trustee's Motion To Alter Chapter 13 Bankruptcy Denied

    Posted By admin || 12-Jul-2011

    In a recent Chapter 13 bankruptcy case filed by a married couple, the bankruptcy trustee unsuccessfully attempted to alter the repayment plan three years after confirmation. The details of the bankruptcy case: The Plan also provided for the Trustee to pay $11,714 plus 9.25% interest to Toyota Motor Credit ("Toyota") in satisfaction of a secured claim, and for payment of fees due the Trustee and ...
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  • Chapter 13 Bankruptcy Gives Delinquent Debtor A Second Chance

    Posted By admin || 29-Jun-2011

    In a recent Chapter 13 bankruptcy, the debtor was faced with losing their case after failing to make payments to the creditor and trustee and failing to maintain their real estate property. In the instant motion, Movant seeks relief from stay in order to foreclose. Movant asserts that Debtor's failure to make payments constitutes cause for relief from stay. Movant also asserts that Debtor has ...
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  • Bankruptcy Grants Automatic Stay Relief Because Repayment Plan Not Feasible

    Posted By admin || 10-Jun-2011

    In a recent Chapter 13 bankruptcy plan, the bankruptcy trustee ruled that the creditor (movant) would be granted relief from the automatic stay because the debtors could not offer adequate protection. On August 17, 2005, Michael E. Redden, Jr. executed a note, payable to Movant, in the original principal amount of $152,000 (the "Home Note"). The Home Note provided for monthly payments of $999.01 ...
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  • Handling Your Car Loan In Chapter 13 Bankruptcy

    Posted By admin || 9-Jun-2011

    How to Handle a Car Loan in Chapter 13 Bankruptcy Do you have a car with a loan attached to it? If so, you may be able to keep your car and payoff your loan in bankruptcy. Here's what you need to know: If you purchased your car less than 910 days before filing bankruptcy, you must pay off the loan balance in full. This rule is in place to prevent debtors from purchasing a vehicle and then ...
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  • Creditor's Failure To File Claim Equals No Chapter 13 Bankruptcy Distribution

    Posted By admin || 7-Jun-2011

    In a recent Texas Chapter 13 bankruptcy, the bankruptcy court ruled that a secured creditor who failed to file a timely proof of claim cannot be allowed to collect distribution under the bankruptcy repayment plan. Details of the bankruptcy case: Munger ("Munger" or "Debtor") and 3601 Olsen, LLC ("Olsen") executed a lease agreement in August 2007. Under the lease, Munger agreed to pay rent to Olsen ...
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  • Why Chapter 13 Bankruptcy Is Sometimes The Best Choice

    Posted By admin || 25-May-2011

    Most debtors considering bankruptcy prefer a Chapter 7 bankruptcy so that they can discharge unsecured debt and quickly conclude their case. However, sometimes filing a Chapter 13 bankruptcy yields results not possible in a Chapter 7 bankruptcy. Let's take a look at some of the benefits of filing Chapter 13 bankruptcy: Chapter 13 bankruptcy allows debtors more flexibility than Chapter 7 ...
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  • What Happens If My Chapter 13 Bankruptcy Plan Is Not Approved?

    Posted By admin || 19-May-2011

    In the recent Chapter 13 bankruptcy case in Texas, a debtor's plan was not approved by the trustee. Because of this, a dispute took place over the distribution of the debtor's assets held by the bankruptcy estate and secured creditors. Prior to dismissal of the Debtor's Chapter 13 case, ASC-as servicing agent for Wells Fargo-received $46,800.00 in payments from the Chapter 13 Trustee. [Finding of ...
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  • Can Chapter 13 Bankruptcy Really Help Me?

    Posted By admin || 14-Feb-2011

    When most debtors think of bankruptcy, they think of Chapter 7 bankruptcy where they can discharge their debts in a few months and get their fresh financial start immediately. Many above-median income debtors are disappointed when they find out that they only qualify for a Chapter 13 bankruptcy. But their disappointment is unwarranted. How a Chapter 13 Bankruptcy Can Help You Below are several ...
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  • Case Study: How A Second Mortgage Can "Fall Off" In Chapter 13 Bankruptcy

    Posted By admin || 11-Feb-2011

    In the Chapter 13 bankruptcy case of debtors who owned a property which had two mortgages on it, the bankruptcy court ruled that the second lien (mortgage) be made unsecured. Let's take a look at a chronology of events in this Chapter 13 bankruptcy. The Plaintiffs filed a voluntary petition under Chapter 13 of the Bankruptcy Code on October 4, 2010. At the time Plaintiffs filed their bankruptcy ...
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  • Can I Make Mortgage Payments Outside Of Chapter 13 Bankruptcy Plan?

    Posted By admin || 10-Feb-2011

    A request to pay your mortgage outside of the Chapter 13 bankruptcy plan is not generally granted by the trustee unless there is some special circumstance. Under the bankruptcy law, a debtor in Chapter 13 bankruptcy who is in default on their mortgage must pay delinquent mortgage payments plus their regular mortgage payment through the bankruptcy plan. Paying their mortgage through the bankruptcy ...
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  • Timely Payment Of Taxes Can Make Or Break Your Chapter 13 Bankruptcy

    Posted By admin || 25-Jan-2011

    How to Avoid Tax Problems During Chapter 13 Bankruptcy Chapter 13 allows debtors to repay some or all of their debts in a three to five year period. But in order for a debtor to qualify for Chapter 13 bankruptcy they must be able to make the bankruptcy plan payment and stay current on their present expenses. Those expenses include tax debt due to the IRS. If a debtor fails to pay their taxes or is ...
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  • Four Things You Should Never Do In Your Chapter 13 Bankruptcy

    Posted By admin || 6-Jan-2011

    Doing the right thing in your bankruptcy is important because dong the wrong thing can have disastrous results. Let's take a look at some of the things you should never do in a Chapter 13 bankruptcy: Don't fail to notify the bankruptcy trustee and/or your bankruptcy attorney that you've had a change in your financial circumstances. That means that if you lost your job during your Chapter 13 ...
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  • Creditor's Attempt To Gain More Interest In Chapter 13 Bankruptcy Fails

    Posted By admin || 3-Jan-2011

    In a recent Chapter 13 bankruptcy case in which a debtor proposed to pay their creditor's (Bank of America) claim in full over the term of their plan, was faced with a challenge by the creditor claiming that the debtor should pay 9.24% interest instead of only 5.25% interest. Bank of America alleges that its status as an oversecured creditor entitles it to the protections of 11 U.S.C. § 506(b). ...
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  • Credit Reporting Before, During and After Chapter 13 Bankruptcy

    Posted By admin || 14-Dec-2010

    Credit Reporting and Chapter 13 Bankruptcy Many debtors, feeling nervous about how a Chapter 13 bankruptcy will impact their credit rating in the three to five years they remain in the repayment plan, have question about how accounts will be reported to the credit reporting agencies. Let's take a look at a few facts to clear up any confusion: A debtor's credit report is often worse BEFORE they ...
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  • 5 Reasons You Can Modify Your Chapter 13 Bankruptcy Plan

    Posted By admin || 7-Dec-2010

    Texas Chapter 13 Modification Reasons for Modifying a Chapter 13 Bankruptcy Plan Many debtors mistakenly believe that a Chapter 13 bankruptcy is a repayment "prison" where they are stuck paying a certain amount of money for 3 to 5 years regardless of how their circumstances change. Well, that couldn't be farther from the truth. The truth is that Chapter 13 bankruptcy is designed so that a debtor ...
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  • Three Things You Must Never Do In Chapter 13 Bankruptcy

    Posted By admin || 20-Nov-2010

    A Chapter 13 bankruptcy is designed to allow debtors the opportunity to repay creditors over a three to five year period while keeping their assets. The amount of debt that is to be repaid and the monthly payments required is determined at the start of the bankruptcy case but this amount is not fixed and can be changed based on fluctuations in the debtor's income or expenses. Unfortunately, some ...
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  • Is There A Minimum Payment Required In Chapter 13 Bankruptcy?

    Posted By admin || 10-Nov-2010

    Minimum Payment Requirement in Chapter 13 Bankruptcy There is a minimum payment requirement in Chapter 13 bankruptcy but it will vary from district to district and depend on several factors. The amount of debt that you must pay in the Chapter 13 bankruptcy repayment term is one factor. There will be certain types of debts that you must pay when you're in Chapter 13 bankruptcy. For example, most ...
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  • Seven Benefits Of Chapter 13 Bankruptcy

    Posted By admin || 30-Oct-2010

    When it comes to choosing a bankruptcy chapter, many debtors prefer Chapter 7 bankruptcy because it allows them to discharge most or even all of their unsecured debts, while Chapter 13 bankruptcy requires that they repay part or all of them debts over the course of 3 to 5 years.. But there are some valuable benefits of Chapter 13 bankruptcy that debtors should not overlook: When a debtor files ...
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  • Your Chapter 13 Bankruptcy Checklist

    Posted By admin || 23-Oct-2010

    Filing for Chapter 13 Bankruptcy? Below is a checklist of things that are required to file Chapter 13 bankruptcy: The names and addresses of all creditors that the debtor owes. The names and addresses of creditors must be filed with the bankruptcy petition. The debtor must include copies of all pay stubs or other proof of payment documents that they have received from any employer in the 60 days ...
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  • Curing A Chapter 13 Bankruptcy Plan Default

    Posted By admin || 23-Oct-2010

    Defaulting on Chapter 13 Bankruptcy A Chapter 13 bankruptcy repayment plan can last anywhere from three to five years. In the course of a Chapter 13 bankruptcy plan a lot can happen. Losing a job, facing a salary reduction or even facing an illness can make it impossible to complete a Chapter 13 bankruptcy plan as it was originally designed. As we have repeatedly suggested, when facing any ...
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  • Three Steps To Success During And After Chapter 13 Bankruptcy

    Posted By admin || 12-Oct-2010

    Your Steps to Success With a Chapter 13 Bankruptcy Like most things worth doing, Chapter 13 bankruptcy is a process that requires a commitment of time and discipline; but the rewards at the end of Chapter 13 bankruptcy could leave you completely debt free and on your way to a financially successful life. Below are three things every Chapter 13 bankruptcy debtor should do to ensure that their ...
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  • Bankruptcy Court Allows Reverse Mortgage Repayment In Chapter 13 Bankruptcy

    Posted By admin || 18-Sep-2010

    Filing Bankruptcy on Reverse Mortgage Reverse mortgages, which allow senior citizen homeowners the opportunity to borrow against the equity of their home and defer repayment of the loan until after they move, sell the home or are deceased, are often used to make retirement financially easier. But one of the drawbacks of a reverse mortgage is that the entire balance of the loan is due upon the ...
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  • I've Fallen Behind On My Mortgage In Chapter 13 Bankruptcy

    Posted By admin || 15-Sep-2010

    Falling Behind on Your Mortgage During Chapter 13 Bankruptcy Falling behind on your mortgage payments in Chapter 13 bankruptcy can create a series of events that lead to foreclosure. After the Chapter 13 bankruptcy debtor has failed to pay their mortgage for about 2 to 3 months, the mortgage company's attorney will send a letter giving them the opportunity to catch up on their payments. If the ...
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  • Why Debt Consolidation Fails Where Chapter 13 Bankruptcy Succeeds

    Posted By admin || 5-Sep-2010

    Many debtors use debt consolidation in an attempt to repay creditors after their finances spin out of control. But in many cases debt consolidation fails to help debtors repay their creditors and get on their feet. Many debtors waste money in debt consolidation schemes and eventually end up filing bankruptcy after years of avoiding it, here's why: Creditors are not required to play nice. Debt ...
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  • Decreasing Your Tax Withholdings Could Jeopardize Your Chapter 13 Bankruptcy

    Posted By admin || 24-Aug-2010

    Incorrect Tax Withholdings During Bankruptcy When debtors are faced with increasing bills and a decreasing salary one of the first things some do is decrease their IRS tax withholdings so that their paycheck shows just a little more income. Fear, panic and the pressing need for cash can cause a debtor to decrease their tax withholdings so much that at the end of the year they actually owe taxes. ...
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  • To Borrow Or Not Borrow During Chapter 13 Bankruptcy

    Posted By admin || 21-Aug-2010

    Debtors in Chapter 13 bankruptcy are not allowed to borrow unless they have bankruptcy court's permission. But is it really a good idea for debtors in Chapter 13 bankruptcy to take on new debt? Well the answer is not as simple as yes or no. Let's take a look at some the reasons why a debtor may or may not want to borrow during their Chapter 13 bankruptcy: The number reason that a debtor may not ...
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  • Five Ways Debtors Benefit From Chapter 13 Bankruptcy

    Posted By admin || 21-Aug-2010

    Oftentimes when debtors consider bankruptcy they think of Chapter 7 bankruptcy, where the debtor can completely discharge most or in some cases all of their unsecured debts. But there are many debtors who are better off filing Chapter 13 bankruptcy and making repayments on their debts over the course of 3 to 5 years. Below are a few ways that Chapter 13 bankruptcy could benefit debtors: Debtors in ...
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  • Three Chapter 13 Bankruptcy Mortgage Snafus That Can Leave You With A Bill

    Posted By admin || 13-Aug-2010

    It's unfortunate, but sometimes debtors in Chapter 13 bankruptcy make all of the required payments to the bankruptcy trustee only to hit with a mortgage notice at the need of their bankruptcy saying that they are thousands of dollars behind in payments. How can this happen? There a few causes of this type of mortgage snafu in bankruptcy: Sometimes mortgage companies will accrue late fees from ...
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  • Buying A Car During Chapter 13 Bankruptcy

    Posted By admin || 10-Aug-2010

    Because Chapter 13 bankruptcy can last anywhere between 3 to 5 years, there are a lot of things that can happen during that time. One of the most common events is the breakdown of an old car and the need to buy a new one. But a debtor in Chapter 13 bankruptcy cannot purchase a vehicle or enter into any other debt contracts without prior approval from the bankruptcy trustee. Things to Consider When ...
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  • How Can I Refile Chapter 13 Bankruptcy After A Dismissal?

    Posted By admin || 10-Aug-2010

    Refiling for Bankruptcy After Court Dismissal A debtor's ability to refile Chapter 13 bankruptcy after a dismissal will depend on various factors. The first thing a debtor needs to do is find out why their Chapter 13 bankruptcy case was dismissed. The most common reasons for dismissing a Chapter 13 bankruptcy case are: The debtor failed to appear in court or failed to obey bankruptcy court orders. ...
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  • Rules You Need To Know When Making Your Payments In Chapter 13 Bankruptcy

    Posted By admin || 6-Aug-2010

    When filing Chapter 13 bankruptcy, the debtor agrees to repay their creditors over the course of 3 to 5 years. The amount that the debtor pays will include both their secured and unsecured debts; however, they may only be required to pay part of their unsecured debts with the balance being discharged at the end of their bankruptcy repayment period. Below are a few rules Chapter 13 bankruptcy ...
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  • How Do Creditors Get Paid In A Chapter 13 Bankruptcy?

    Posted By admin || 29-Jul-2010

    When a Chapter 13 bankruptcy plan is created there is an even number of payments required over a certain number of years. For example, a debtor may be required to make payments of $536 per month for five years via Chapter 13 bankruptcy. But just because there is an even number of payments does not mean that all creditors are paid the same amount at the same time. Chapter 13 bankruptcy repayment ...
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  • Converting Chapter 7 Bankruptcy Into Chapter 13 Bankruptcy

    Posted By admin || 27-Jul-2010

    If you're in a Chapter 7 bankruptcy and behind on your car payments and home mortgage you could face a vehicle repossession and foreclosure. For those Chapter 7 bankruptcy debtors facing vehicle repossession and/or foreclosure converting their Chapter 7 bankruptcy into a Chapter 13 bankruptcy may be the right choice. Changing a Chapter 7 Bankruptcy Into Chapter 13 Bankruptcy Here's what you need ...
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  • Dismissing Your Chapter 13 Bankruptcy Case When You Simply Can't Pay

    Posted By admin || 20-Jul-2010

    While there are many ways to work around a debtor's difficulty in making payments on their Chapter 13 bankruptcy repayment plan, sometimes debtors need to simply dismiss their case. Below are three reasons why a debtor may opt for a voluntary dismissal of their Chapter 13 bankruptcy case if they can no longer pay: There is no way for you to make payments on your debt in Chapter 13 bankruptcy; but ...
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  • Supreme Court Ruling Allows Flexibility In Chapter 13 Bankruptcy

    Posted By admin || 26-Jun-2010

    The Supreme Court ruled that bankruptcy courts can now account for changes in a debtor's income or expenses when calculating projected disposable income. The deciding case involved Stephanie Kay Lanning, a debtor who filed Chapter 13 bankruptcy and agreed to pay off $36,700 in unsecured debt in three years. The bankruptcy trustee objected to the debtor's proposed bankruptcy plan because the ...
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  • Tax Debts And Chapter 13 Bankruptcy

    Posted By admin || 18-Jun-2010

    Debtors who file Chapter 13 bankruptcy will repay their debts partially or in full over a course of three to five years. Depending on their circumstances, they may be able to partially discharge their federal or state taxes. Below are a few rules debtors in Chapter 13 bankruptcy should know about tax debt: Tax debts generally are considered priority debts which must be paid 100% but there are ...
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  • Filing For Chapter 13 Bankruptcy Without Your Spouse

    Posted By admin || 11-Jun-2010

    Chapter 13 bankruptcy allows the debtor to repay part or all of their debts over the course of 3 to 5 years with any remaining unsecured (and dischargeable) debt being discharged from bankruptcy at the end of the repayment term. For debtors who are married, filing Chapter 13 bankruptcy may become complicated if they choose to file bankruptcy alone. Let's take a look at some of the problems a ...
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  • Five Things You Should Know About Chapter 13 Bankruptcy

    Posted By admin || 9-Jun-2010

    Chapter 13 bankruptcy is designed for wage earners. If you do not have income you will not be able to file Chapter 13 bankruptcy. Chapter 13 bankruptcy allows the debtor to partially repay their unsecured creditors. One of the misconceptions about Chapter 13 bankruptcy is that debtors must repay all of their debts. The amount of money a debtor will repay is determined by their ability to repay ...
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  • Chapter 13 Bankruptcy's Secured Debt Ceiling Determined By Collateral's Value

    Posted By admin || 5-Jun-2010

    In the Chapter 13 bankruptcy case of Brammer, William H. Jr. and Heili K.; In re, the bankruptcy court ruled against a bankruptcy trustee who wanted to have the debtors' case dismissed because their secured debt was above Chapter 13 bankruptcy's debt ceiling. The details of the bankruptcy case: The Chapter 13 debtors disclosed no unse­cured debt and secured debt of $219,647 secured by collater­al ...
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  • Bankruptcy Court Rules That Debtors Did Not Abandon Their Home

    Posted By admin || 31-May-2010

    In the Chapter 13 bankruptcy case of Curry, James K. and Diana M.; In re, a bankruptcy court overruled a bankruptcy trustee who tried to revoke the debtors' homestead exemption by claiming they had abandoned their home. The details of the bankruptcy case: The Chapter 13 debtors owned a home in Pleasanton, Kan., but lived in Topeka "while school is in session." Pleasanton is about 120 miles from ...
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  • Four Reasons For A Chapter 13 Bankruptcy Payment Increase

    Posted By admin || 30-May-2010

    When a debtor files Chapter 13 bankruptcy, they are required to commit to a repayment plan that distributes their "excess" income to creditors. While for the most part Chapter 13 bankruptcy repayment plans remain the same, there are several reasons why a repayment plan could increase. Reasons For A Chapter 13 Bankruptcy Payment Increase An Increase in Your Salary Chapter 13 bankruptcy plans take ...
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  • Sudden Unemployment And Chapter 13 Bankruptcy

    Posted By admin || 28-May-2010

    When a debtor files for Chapter 13 bankruptcy, one of their biggest fears is that they won't be able to maintain the repayment plan due to a job loss or significant reduction in income. Because the Chapter 13 bankruptcy repayment period lasts from 3 to 5 years, the fear of a job loss during that time is not unreasonable; however, Chapter 13 bankruptcy has built in mechanisms that protect the ...
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  • Celebrity Bankruptcy: J-Lo's Ex May File Bankruptcy To Sell Racy Photos/Videos

    Posted By admin || 27-May-2010

    Jennifer Lopez's ex-husband Ojani Noah has announced that he is filing Chapter 13 bankruptcy so that he can sell his racy photos and videos of J-Lo acquired during their marriage. Ed Mayer, Noah's business partner has accused J-Lo and her attorneys of using litigation and Lopez's celebrity status as a way to engage in spousal abuse against Noah. He also suggested that the bankruptcy filing will ...
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  • Bankruptcy Court Finds Creditors To Be In Contempt For Violating Discharge

    Posted By admin || 21-May-2010

    In the bankruptcy case of Jarvar, Stanley E. and Barbara J.; In re (Jarvar v. Title Cash of Montana Inc., et al.), the bankruptcy court found Title Cash (the creditors) to be in civil contempt for violating the bankruptcy discharge. The details of the bankruptcy case: The debtor filed for Chapter 13 relief on Nov. 23, 2001. On March 29, 2002, Title Cash filed proofs of claim for two secured ...
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  • Failure To Follow Proper Bankruptcy Procedures Can Be Costly

    Posted By admin || 19-May-2010

    In the Chapter 13 bankruptcy case of Wilson, David M. and Jamie M.; In re, the bankruptcy court denied the debtors' objection to a creditor's proof of claim and the bankruptcy plan was not confirmed. The details of the bankruptcy case: The Chapter 13 debtors said that there were two claims secured by their home. Although the debtors' schedules identified neither debt as being contingent, ...
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  • Bankruptcy Court Rules House Worth Only What Buyers Will Pay

    Posted By admin || 18-May-2010

    In the bankruptcy case of Lewis, Kevin L. and Kathy A.; In re (Lewis v. State Street Bank) , the bankruptcy court ruled that the value of a home was only what buyers were willing to pay for it despite what an appraiser may claim. The details of the bankruptcy case: The Chapter 13 bankruptcy debtors said their home was worth $85,000. They owed $69,534 on the first deed of trust, $16,981 on a second ...
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  • States Can File Objection To Bankruptcy Plan On Behalf Of Domestic Support Claimant

    Posted By admin || 17-May-2010

    In the Chapter 13 bankruptcy case of Trupp, Douglas; In re, the bankruptcy court partially sustained an objection to the confirmation of a debtor's Chapter 13 bankruptcy plan. The details of the bankruptcy case: In the debtor's Chapter 13 case, the Arizona Department of Economic Security filed a priority claim in the amount of $106,607 for a prepetition child support arrear­age. The claim listed ...
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  • Overcoming The Presumption Of Bankruptcy Abuse

    Posted By admin || 12-May-2010

    When a debtor decides to file bankruptcy, in order to determine if they should file Chapter 7 bankruptcy or Chapter 13 bankruptcy it must first be determined if their income is above the median income for Texas. And a debtor's income is only determined by their past six months of income before filing bankruptcy. If it is determined that a debtor considering bankruptcy earns more than the median ...
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  • Debtors May Not Unfairly Favor Student Loan Creditors During Bankruptcy

    Posted By admin || 10-May-2010

    In the Chapter 13 bankruptcy case of Parrott, Gregory S. and Karen S.; In re, the bankruptcy court refused to confirm the debtors' repayment plan saying that the debtors unfairly treated the student loans as long-term debt to the detriment of unsecured creditors. The details of the bankruptcy case: The Chapter 13 debtors' plan proposed to bring payments on two student loans current while ...
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  • Chapter 13 Bankruptcy And Student Loan Discharge

    Posted By admin || 9-May-2010

    In the Chapter 13 bankruptcy case of Cassim, Jennifer D.; In re (Cassim v. Edu­cational Credit Management Corp.) , the 6th U.S. Circuit Court of Appeals ruled that a Chapter 13 bankruptcy debtor did not need to wait until the end of the case to ask the bankruptcy court to determine whether their student loans would be discharged. The debtor filed for Chapter 13 relief on April 11, 2007. She was ...
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  • The 6th Circuit Court Rules In Favor Of Debt Collector

    Posted By admin || 9-May-2010

    In the bankruptcy case of Wingerter, Gerald and Janet G.; In re (B-Line LLC v. Wingerter) , the 6 th Circuit Court ruled that Rule 9011 does not impose a continuing obligation on a creditor to obtain more information or revaluate its position as the case develops and that the bankruptcy court erred when it sanctioned the creditor, B-Line. The details of the bankruptcy case: B-Line LLC, a business ...
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  • Oops! I Made A Mistake In My Chapter 13 Bankruptcy...Now What?

    Posted By admin || 6-May-2010

    There are several rules that a debtor must abide by when filing Chapter 13 bankruptcy. For example, a Chapter 13 bankruptcy debtor is prohibited from transferring property without the consent of the bankruptcy court or borrowing money without first getting permission of the bankruptcy court. But what happens when a debtor inadvertently circumvents the established rules of their Chapter 13 ...
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  • Debtors Are Not Required To Financially Punish Themselves Because Of Past Mistakes

    Posted By admin || 6-May-2010

    There seems to be an upsurge of anti-bankruptcy rhetoric aimed at indebted Americans to make them feel guilty about their financial circumstances which force them into bankruptcy. Since the critics can't honestly say that bankruptcy is not an effective way to discharge debt and get a fresh financial start, now many are saying that bankruptcy is immoral and too easy. Let's get to the bottom of the ...
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  • Can I Reduce My Car Loan Interest Payments In Bankruptcy?

    Posted By admin || 6-May-2010

    Car Loans and Bankruptcy If you're filing for bankruptcy, it's important to understand that car loans are treated differently in Chapter 11 bankruptcy than they are in Chapter 13 bankruptcy. If you're a high income debtor you may need to file Chapter 11 bankruptcy; but one of the benefits of Chapter 11 bankruptcy is how car loans are treated in that type of bankruptcy. Let's take a look to see how ...
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  • How Does The Chapter 13 Bankruptcy Trustee Get Paid?

    Posted By admin || 5-May-2010

    When a debtor files Chapter 13 bankruptcy, he/she is has a bankruptcy trustee appointed to their case. The bankruptcy trustee is responsible for collecting payments from the debtor and distributing that money to creditors involved in the bankruptcy case. So How Does The Chapter 13 Bankruptcy Trustee Get Paid? But what many debtors don't know is that the Chapter 13 bankruptcy trustee gets paid ...
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  • Can I Discharge My Second Mortgage In Chapter 13 Bankruptcy?

    Posted By admin || 5-May-2010

    While in most cases filing for Chapter 7 bankruptcy will not impact your mortgage, Chapter 13 bankruptcy in another matter. When a debtor files for Chapter 13 bankruptcy and has a second mortgage he/she just may be able to win a bankruptcy discharge for the second mortgage on their home if it is considered unsecured debt. When is a second mortgage considered unsecured debt? If a bankruptcy debtor ...
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  • Proof Of Claim Filed By IRS Allowed After Deadline

    Posted By admin || 4-May-2010

    In the bankruptcy case of Puccio, Charles J. III and Julie K.; In re, the bankruptcy court allowed a proof of claim amended and filed by the IRS after the deadline for government claims because it related to proofs of claims filed prior to the deadline. The details of the bankruptcy case: The debtors filed for Chapter 13 relief on March 10, 2009. The debtors filed their proposed plan on March 25. ...
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  • Bankruptcy Court Denies Creditor Proof Of Claim Post-Confirmation

    Posted By admin || 4-May-2010

    In the Chapter 13 bankruptcy case of Dortch, Eric D. and Dawn R.; In re, the bankruptcy court sustained the trustee's objection to a secured proof of claim that was amended after confirmation of the debtors' bankruptcy plan. The details of the bankruptcy case: In 2006, the debtors purchased a 2003 Lexus GX470. The installment purchase contract and the lien were acquired by Citifinancial Auto ...
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  • Court Denies "Unconscionable" Chapter 13 Bankruptcy Plan

    Posted By admin || 30-Apr-2010

    In the Chapter 13 bankruptcy case of Grafton, Thomas W. and Patricia M.; In re, the bankruptcy court sustained an objection to confirmation of the debtors' plan saying the plan was not proposed in good faith and that it was unconscionable. The details of the bankruptcy case: When the debtor-husband divorced his previous wife, he agreed that any obligations he owed in the couple's property ...
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  • Large Mortgage Payments Alone Do Not Indicate Bad Faith Bankruptcy

    Posted By admin || 27-Apr-2010

    In the Chapter 13 bankruptcy case of Wick, Dana L.; In re, the bankruptcy court confirmed the debtors' Chapter 13 bankruptcy plan over the bankruptcy trustee's objection. Bankruptcy case details: The debtor and her husband purchased a home in February 2006. At the time, they had not sold their existing home. The real estate market began its fall after the debtors bought their new home. At the same ...
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  • Bankruptcy Court Allows Discriminatory Repayment When Benefiting Debtor Rehabilitation

    Posted By admin || 2-Apr-2010

    In the Chapter 13 bankruptcy case of Caccamise, Joseph and Cynthia; In re, the bankruptcy court ruled that it was okay for a debtor to pay one credit card in full while only paying others partially because the debtor needed access to the credit card for her business. The details of the bankruptcy case: The below-median income Chapter 13 debt­ors had $5,195 in take-home pay and $5,088 in expenses. ...
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  • Beware Of Chapter 13 Bankruptcy Scams

    Posted By admin || 1-Apr-2010

    Scammers have a few new tricks up their sleeves which now include a scheme designed to defraud Chapter 13 bankruptcy debtors. How The Scam Works Chapter 13 bankruptcy debtors are sent a letter on very "official" looking letterhead titled "Notification of Debt Relief and Loan Modification" and it goes on to say that the debtor's Chapter 13 bankruptcy case has been dismissed and that they need to ...
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  • Chapter 13 Debtors' Failure To Include Unemployment Benefits Does Not Result In Dismissal

    Posted By admin || 31-Mar-2010

    In the Chapter 13 bankruptcy case of Avellandeda, Guillermo and Jenny; In re, the bankruptcy court overruled the trustee's objection to confirmation of the debtors' plan. The details of the bankruptcy case: The Chapter 13 debtors proposed a 36-month plan that anticipated paying 1 percent of unsecured claims. The debtors scheduled monthly take-home income of $8,156 and expenses of $7,900, leaving ...
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  • Lottery Commission Loses Bid To Except Claim From Bankruptcy Discharge

    Posted By admin || 31-Mar-2010

    In the Chapter 13 bankruptcy case of Carolina Lottery Commission v. Wells, the bankruptcy court ruled against the Carolina Lottery Commission after it attempted to except its claim from bankruptcy discharge. The details of the bankruptcy case: The Chapter 13 debtors owned and operated a convenience store. In May 2006, the store received permis­sion to sell lottery tickets. In April 2008, when they ...
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  • Be Careful What Oral Agreements You Make With Creditors

    Posted By admin || 26-Mar-2010

    In the Chapter 13 bankruptcy case of Janssen, Richard D.; In re (Janssen v. Chase Home Finance LLC) , the bankruptcy ruled against a debtor who changed his mind about an oral creditor/debtor settlement agreement. The details of the bankruptcy case: After he received a Chapter 13 discharge, the debtor sued Chase Home Finance alleging that the lender failed to abide by the terms of his confirmed ...
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  • Chapter 13 Bankruptcy Debt Limits Increase

    Posted By admin || 26-Mar-2010

    When a debtor decides to file for Chapter 13 bankruptcy, there is a limit on how much debt they can have. As of April 1, 2010 the debt limits for Chapter 13 bankruptcy will increase by 7 percent. Chapter 13 bankruptcy debt limits for unsecured debt will be $360,475 and for secured debt, the limit will be $1,081,400. What this means is that a debtor filing Chapter 13 bankruptcy cannot have more ...
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  • Single Bankruptcy Debtors Not Allowed Two Cars At The Expense Of Unsecured Creditors

    Posted By admin || 19-Mar-2010

    In the Chapter 13 bankruptcy case of Daniel-Sanders, Andrea C.; In re, the bankruptcy court ruled that a single debtor in Chapter 13 bankruptcy could in fact keep two cars but could only do so if it did not diminish bankruptcy plan payments for unsecured creditors. The details of the Chapter 13 bankruptcy case: The unmarried Chapter 13 debtor took Means Test deductions for two cars. One was a 2004 ...
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  • The Chapter 13 Bankruptcy Process For Debtors

    Posted By admin || 16-Mar-2010

    When a debtor decides to file for Chapter 13 bankruptcy there is process they must follow. Below we break down the Chapter 13 bankruptcy process into seven simple to understand steps. Step 1: First discuss with your bankruptcy attorney all of your bankruptcy options, including Chapter 7 bankruptcy. Although Chapter 13 bankruptcy is a viable form of handling your debt make sure that it is the right ...
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  • Five Tips For Self-Employed Debtors Filing Bankruptcy

    Posted By admin || 15-Mar-2010

    Tip #1 - Make sure your business and personal finances are separate before you file bankruptcy. Take an effort to keep track of your business expenses and income while simultaneously keeping your private finances in order before you bankruptcy filing. Tip #2 - Work with an accountant if necessary to calculate what your monthly income is before you file bankruptcy. The bankruptcy court will look at ...
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  • Can I Convert My Chapter 13 To Chapter 7 Bankruptcy?

    Posted By admin || 8-Mar-2010

    Chapter 13 bankruptcy allows a debtor to repay all or part of their debts over a 3 to 5 year period of time. However, some debtors who have filed Chapter 13 bankruptcy may find themselves facing new financial difficulties at some point during the repayment period that prevents them from making agreed upon payments. This reason alone has been major factor is scaring off some debtors from filing ...
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  • Foreclosure and Chapter 13 Bankruptcy - What You Need To Know

    Posted By admin || 16-Feb-2010

    Saving your home from foreclosure is a very real possibility, even if your income is small and fixed. But for many homeowners battling foreclosure with Chapter 13 bankruptcy, maintaining payments and keeping their home can still be a struggle a recent study revealed. Foreclosure Listing Service in Addison analyzed post-bankruptcy cases of homeowners in 60 Texas counties. It found that in 2009, ...
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  • Filing Bankruptcy While Holding Rental Property

    Posted By admin || 26-Jan-2010

    Bankruptcy and Rental Property Holding rental property when filing bankruptcy can impact your "means test" and your post-bankruptcy fresh start depending on the circumstances surrounding that property. Let's take a look at a few scenarios: If you have a rental property with a paying tenant, the rent received will be counted towards your income. This fact alone could cause you to "fail" the means ...
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  • How Do I Catch Up On My Mortgage In Bankruptcy?

    Posted By admin || 25-Jan-2010

    Most debtor/homeowners facing foreclosure and considering bankruptcy are significantly delinquent on their mortgage payments. But whether you're 1 month behind on your mortgage payment or 6 months behind, Chapter 13 bankruptcy can help you catch up with your payments and return your mortgage to good standing. Here's how it works: When you file bankruptcy you will include your mortgage lender's ...
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  • How Chapter 13 Bankruptcy Works

    Posted By admin || 22-Jan-2010

    When a debtor files Chapter 13 bankruptcy, he/she, along with the bankruptcy attorney and trustee will work together to determine how much the debtor will pay creditors and for how long. A Chapter 13 bankruptcy can last anywhere from three to five years. All creditors who filed claims in the bankruptcy court are lumped together and paid via the bankruptcy trustee. They do not typically receive ...
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  • Job Loss During Chapter 13 Bankruptcy? You Still Have Options

    Posted By admin || 12-Jan-2010

    One of the biggest fears of debtors filing Chapter 13 bankruptcy is that they will lose their job during the 3 to 5 year repayment plan. Fortunately, debtors who lose their job during a Chapter 13 bankruptcy still have options: Job Loss During Chapter 13 Bankruptcy Options Dismiss the Chapter 13 Bankruptcy Case Most debtors have the power to voluntarily dismiss their Chapter 13 bankruptcy case at ...
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  • Chapter 13 Bankruptcy and Teens: Helping Them Through The Process

    Posted By admin || 11-Jan-2010

    Debtors who file Chapter 13 bankruptcy are often doing so with young children and teens. While cutting back on expenses and sticking to your bankruptcy repayment plan can be challenging when you're not accustomed to sticking to a budget, it can be even more difficult for teens. Here are a few tips on how parents in Chapter 13 bankruptcy can ease their teen's transition to a more frugal lifestyle: ...
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  • Reasons Why Chapter 13 Plans Don't Succeed

    Posted By admin || 7-Jan-2010

    A Chapter 13 reorganization can be your fresh financial start, so make sure to avoid things that might cause the plan to fail. If you use Chapter 13 bankruptcy the right way, you'll end up with a repayment plan that will be easy to manage, and you'll be freed from struggling month to month. Below are four of the main reasons that Chapter 13 bankruptcies fail: You don't keep your attorney in the ...
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  • What If I Want To Sell My Home During Chapter 13 Bankruptcy?

    Posted By admin || 21-Dec-2009

    If you're in Chapter 13 bankruptcy and you want to sell your home, there are few things you need to know before you proceed: The bankruptcy court must approve the terms of the sale before a debtor closes on the property. The debtor's bankruptcy attorney must notify all of the creditors in the bankruptcy before the property is sold. You and your bankruptcy attorney must disclose the details of the ...
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  • State Farm Insurance May Owe YOU

    Posted By admin || 19-Nov-2009

    A Texas judge ruled that State Farm Insurance must repay $310 million in premiums and back interest to Texas customers for overcharging them on homeowner policies. The ruling will affect State Farm Lloyds residential policies between September 2003 and July 2008. The refund is far less than the $1 billion that consumer advocates wanted, prompting one, Texas Watch, to say Insurance Commissioner ...
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  • Benefits of Chapter 13 Bankruptcy

    Posted By admin || 6-Nov-2009

    Most debtors considering bankruptcy hope that they will qualify for Chapter 7 bankruptcy; but if they don't they can become very disappointed. If you are unable to qualify for Chapter 7 bankruptcy, don't despair. Although discharging all of your debt in Chapter 7 bankruptcy has it benefits, Chapter 13 bankruptcy also offers its own set of excellent benefits for debtors: Chapter 13 bankruptcy will ...
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  • Co-Signers And Chapter 13 Bankruptcy

    Posted By admin || 6-Nov-2009

    Do you have a secured loan with a co-signer? When you file Chapter 13 bankruptcy there are a few ways that you can minimize or even eliminate future creditor actions against your non-filing co-signer. Here are your options: You can return the property to the lender. For example, if you and a co-signer have a loan on a vehicle, you can surrender the vehicle to the creditor during bankruptcy. But ...
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  • What You Need To Know About Chapter 13 Bankruptcy

    Posted By admin || 29-Oct-2009

    Chapter 13 bankruptcy is a powerful tool for repaying an agreed upon amount of your debt under a plan that fits your budget. Here's what you need to know about Chapter 13 bankruptcy: Chapter 13 bankruptcy is specifically designed for "wage-earners" who have enough disposable income to repay their debts. Chapter 13 bankruptcy repayment plans must last three to five years. Chapter 13 bankruptcy ...
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  • How To Estimate Your Monthly Chapter 13 Bankruptcy Payment

    Posted By admin || 25-Sep-2009

    When a debtor files Chapter 13 bankruptcy, the bankruptcy court and debtor work together to create an affordable monthly repayment plan that will allow the debtor to maintain a typical middle-class lifestyle. The debtor makes payments for 3 to 5 years and at the end of the term the debt that was not repaid is discharged. How to Estimate Your Chapter 13 Bankruptcy Monthly Repayments To estimate ...
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  • I Filed Chapter 13 Bankruptcy But I Lost My Job! What Now?!

    Posted By admin || 25-Sep-2009

    As the unemployment rate continues to climb many debtors considering Chapter 13 bankruptcy are fearful that they want be unable to keep their payment agreement because of the loss of a job or other crisis. The good news is that the bankruptcy law allows debtors to convert their Chapter 13 bankruptcy case to a Chapter 7 bankruptcy. The debtor also has the option of dismissing their Chapter 13 ...
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  • Mortgage Voided By Bankruptcy

    Posted By admin || 17-Sep-2009

    In the bankruptcy case of Stanfield, Daniel K. and Sharon E.; In re (Stanfield v. First Midwest Bank) , the bankruptcy court ruled that the defen­dant's/creditor's mortgage was void because the defendant/creditor failed to get both spouses' signature. The details of the bankruptcy case: "In 2005, the defendant loaned $20,000 to the debtors' business. Each of the debtors individually guaranteed the ...
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  • Bankruptcy Court Denies Bank's Motion For Entry Of A Final Judgment

    Posted By admin || 15-Sep-2009

    In the bankruptcy case of de la Fuente, Antoinette and Lenord; In re (De la Fuente v. Wells Fargo Bank ) , the bankruptcy court denied the lender's motion for entry of a final judgment. The details of the bankruptcy case: When Wells Fargo Bank imposed fees on the Chapter 13 debtors' account, the debtors accused the bank of violating the automatic stay and bankruptcy confirmation order. The ...
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  • Bankruptcy Benefits: What's In It For Me?

    Posted By admin || 30-Aug-2009

    Bankruptcy definitely has a bad rap in our country, but it should not. It is the perfect solution for many consumers, providing them the one and only opportunity they have to lighten their heavy financial burdens which they might otherwise suffocate under. Here is a list of potential benefits to filing for bankruptcy. 1. Chapter 7 bankruptcy provides for the discharge of most, if not all, of your ...
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  • Debtor's Credit Card Debt Ruled Non-Dischargeable

    Posted By admin || 29-Aug-2009

    In the Chapter 7 bankruptcy case of (Jenks, Louise E.; In re (GE Money Bank v. Jenks)), the bankruptcy court ruled that the debtor's credit card debt was non-dischargeable because she misrepresented her income when applying for the credit card. The details of the bankruptcy case: "The 74-year-old debtor applied for a Lowe's credit card on March 15, 2008. She said she had an annual income of ...
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  • Mortgage Modification in Chapter 13 Bankruptcy

    Posted By admin || 29-Aug-2009

    In the Chapter 13 bankruptcy case of (Smith, David B. and Susan L.; In re) the bankruptcy court denied a motion to approve/disapprove an agreement to modify a residential mortgage. The bankruptcy case details: "The Chapter 13 debtors asked the bank­ruptcy court to approve a modification of their home mortgage. The lender agreed to reduce the mortgage payments for three years and to add the ...
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  • Bankruptcy Court Splits Joint Income Tax Refund

    Posted By admin || 27-Aug-2009

    In the Chapter 13 bankruptcy case of (Halverson, Michael; In re), the bankruptcy court ruled that the Chapter 13 debtor's bankruptcy estate was entitled to half of the joint income tax refunds received by the debtor and his nonfiling wife. The details of the bankruptcy case: "The Massachusetts Department of Revenue (MDOR) filed a proof of claim in the amount of $64,172 including $14,936 for joint ...
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  • Help! I Owe Too Much Debt!

    Posted By admin || 21-Aug-2009

    As the price of housing has increased in the past 10 years and access to even more extraordinary amounts of credit have opened up to consumers (until recently), many debtors have found themselves drowning in hundreds of thousands or even millions of dollars in debt. Unfortunately, large amounts of debt can close off certain types bankruptcy to debtors; but it doesn't eliminate your bankruptcy ...
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  • Undisclosed Fees and Charges Lands Mortgage Servicer in Trouble

    Posted By admin || 17-Aug-2009

    In the bankruptcy case of (Moffitt, Donald E. and Phyllis J.; In re (Mof¬fitt v. America's Servicing Co.)), the bankruptcy court allowed the debtor to file a claim against a mortgage servicer because of undisclosed fees and charges. The details of the bankruptcy case: In this Chapter 13 bankruptcy case the debtor's bankruptcy plan included measures to repay back mortgage payments over the life of ...
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  • Bankruptcy Court Exercises Power to Extend Stay of Relief for Homeowner

    Posted By admin || 14-Aug-2009

    In the Chapter 13 bankruptcy case Borgens, Charlotte P.; In re (Wells Fargo Bank Minn. v. Borgens), the bankruptcy court extended a stay of relief, giving a debtor more time to save her home from foreclosure despite the mortgage lender's protests. The details of the bankruptcy case: "The debtor filed for Chapter 13 bankruptcy on March 15, 2004. A little more than one year later, a consent order ...
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  • Consumer Bankruptcy on The Rise

    Posted By admin || 14-Aug-2009

    According to an article in Bloomberg, consumer bankruptcies are on the rise and show no sign or decreasing. Experts predict that consumer bankruptcies will hit a high of 1.4 million by December 31st as more people face job losses and find it difficult to refinance debt. Last month along 126,000 consumers filed bankruptcy, a 34 percent increase from July 2008. And in the first six months of 2009, ...
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  • Do You Need a Debt Reality Check?

    Posted By admin || 13-Aug-2009

    The current economic downturn has many debtors scrambling to pay off credit card debt, personal loans and even their mortgage while they still have an income to do so. But many debtors are finding that no matter how hard they try, their debt load just seems to increase or decrease by very little. The reality is that just because a debtor pays "something" on their credit card debt (or other debts), ...
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  • Keeping Your House With Chapter 13 Bankruptcy

    Posted By admin || 16-Jul-2009

    Most homeowners who file for bankruptcy are at least a few months behind on their mortgage payments and are struggling to pay other essentials such groceries and utilities. When filing for bankruptcy a debtor needs to decide if they want to or even if it is financially feasible to retain their home. These are the questions homeowners considering bankruptcy should ask themselves: Can I afford to ...
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  • Special Class of Creditors Disallowed in Chapter 13 Bankruptcy Case

    Posted By admin || 15-Jul-2009

    In the Chapter 13 bankruptcy case of two Texas debtors, the bankruptcy court dismissed the debtors' repayment plan because it made special provisions for a "special class" of creditors. These special class creditors would receive their payments in full at the expense of the other creditors. The bankruptcy case said: "The debtors' plan is a sixty-month plan with Hancock and HSB designated as ...
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  • Expecting a Child Soon and Considering Chapter 13 Bankruptcy?

    Posted By admin || 2-Jul-2009

    If you're an expectant working mother and will take medical leave from your job during your Chapter 13 bankruptcy, you may be able to reduce payments based on your reduced income for that time period. A debtor's Chapter 13 payments are determined by the means test which looks at a debtor's average monthly income for the six months prior to filing bankruptcy. One option for using the medical leave ...
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  • Chapter 13 Bankruptcy an Effective Remedy to Discharge "Stubborn Debt"

    Posted By admin || 23-Jun-2009

    Many people considering bankruptcy who are often worried that they may not qualify for a Chapter 7 bankruptcy discharge don't realize that Chapter 13 bankruptcy actually discharges more "types" of debt than Chapter 7 bankruptcy. A matter of fact, Chapter 13 bankruptcy may be the best solution for certain types of debts that simply cannot be discharged in Chapter 7 bankruptcy. Debts that can be ...
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  • What Happens To My Chapter 13 Bankruptcy If I Can No Longer Work?

    Posted By admin || 12-Jun-2009

    Many debtors considering bankruptcy worry that they will be forced to continue their Chapter 13 bankruptcy plan even if they can no longer work because of an injury or other valid reason. If for some reason a debtor in Chapter 13 bankruptcy is unable to continue his/her bankruptcy repayment plan, he/she may be eligible for a "hardship discharge." What that means is that the bankruptcy court will ...
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  • Does Temporary Increase in Income Affect Chapter 13 Bankruptcy?

    Posted By admin || 8-Jun-2009

    Debtors who file for Chapter 13 bankruptcy are placed on a payment plan based on their income and expenses. If that income increases, the plan may change; but if it is only a small temporary increase it is unlikely the Chapter 13 bankruptcy would be affected. Let's take a closer look: Debtors in Chapter 13 bankruptcy must pay their secured and priority creditors first. After those creditors are ...
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  • Who Files Chapter 13 Bankruptcy?

    Posted By admin || 5-Jun-2009

    Filing Chapter 13 Bankruptcy There are two chapters of bankruptcy commonly used by individual debtors, Chapter 7 and Chapter 13 bankruptcy. Although many debtors with no assets file Chapter 7 bankruptcy, there are many debtors who need to file Chapter 13 bankruptcy and enter into a repayment plan to save their assets. Let's take a look at who these debtors are: Debtors who have income that will ...
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  • When Does Unsecured Debt Become Secured?

    Posted By admin || 1-Jun-2009

    When discussing "unsecured" debt most debtors are speaking of credit card debt. But unsecured debt could also include a personal loan, loans from friends/family, unpaid rent etc. Basically, unsecured debt is any debt that is not attached to some type of property. Unsecured creditors do not have the right to seize a debtor's property once the debtor has defaulted on the loan. However, unsecured ...
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  • Living With Chapter 13 Bankruptcy: Debt and Property

    Posted By admin || 12-May-2009

    When a debtor files Chapter 13 bankruptcy he/she is required to repay all or a portion of his/her debt over the course of 3 to 5 years. While in Chapter 13 bankruptcy, a debtor is prohibited from taking actions such as: Selling or "getting rid of" property without the approval of the bankruptcy court. For example, if a Chapter 13 bankruptcy debtor owns an old car and decides that he/she wants to ...
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  • Filing Chapter 13 Bankruptcy? Budget Wisely

    Posted By admin || 7-May-2009

    If a debtor decides to file Chapter 13 Bankruptcy, it is important that they create an accurate budget that accounts for all of the expenses and income. Chapter 13 bankruptcy requires the debtor to make monthly payments to the bankruptcy court every month for 3 to 5 years and if the debtor fails to follow the repayment plan the case could be dismissed. Here's what a Chapter 13 bankruptcy debtor ...
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  • Debtors Sanctioned For Untimely Response

    Posted By admin || 4-May-2009

    In the Chapter 13 bankruptcy case of Rodriguez, Jose H. and Irene M.; In re (Rodriguez v. Select Portfolio Services Inc.) , the bankruptcy court sanctioned the debtors, ordering them to pay the creditor's attorney's fees for failing to respond to discovery requests and requests for admission in a timely matter. . The details of the bankruptcy case: The debtors filed for Chapter 13 relief after the ...
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  • Is Your Chapter 13 Bankruptcy Plan Feasible?

    Posted By admin || 24-Apr-2009

    For those debtors considering Chapter 13 Bankruptcy, it is important that you create a clear, feasible plan to repay your debts within the prescribed time period. Sometimes, a bankruptcy trustee or judge will disapprove a Chapter 13 bankruptcy plan because of feasibility issues. When a bankruptcy court says that a Chapter 13 bankruptcy plan is not feasible, what they're saying is that your plan is ...
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  • Default On Pool Kit Leads To Lien

    Posted By admin || 23-Apr-2009

    In the Chapter 13 Bankruptcy case Everetts, Bradley R. and Ruby J.; In re the debtors' objection to a creditor's proof of claim as a secured creditor is rejected by the bankruptcy court. The details of the bankruptcy case: The debtors financed an in-ground pool kit and defaulted on the debt. When the debtors filed Chapter 13 bankruptcy, they treated the creditor as unsecured. But the bankruptcy ...
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  • Debtor Unable To Pay Suffers Chapter 13 Bankruptcy Dismissal

    Posted By admin || 10-Apr-2009

    In the Chapter 13 Bankruptcy case (Schafer, Frances L.; In re,) a debtor who had already paid significantly into a Chapter 13 Bankruptcy plan suffers a dismissal because she fails to make enough money to repay her debts in the proposed plan. The details of the Chapter 13 bankruptcy case: The debtor, who worked on commission as an independent furniture representative missed two of her seven plan ...
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  • Bankruptcy Court Allows Debtor To Deduct Ownership Expense On Debt-Free Car

    Posted By admin || 10-Apr-2009

    This Chapter 13 bankruptcy (Burbank, Edward J. and Donna M.; In re) which allowed debtors to deduct ownership expenses on a vehicle they owned clear and free of a car loan, may be good news for other above-median income debtors filing bankruptcy. The details of the Chapter 13 Bankruptcy case: The Chapter 13 trustee objected to confirma¬tion of the above-median income debtors' plan on the basis ...
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  • Modified Mortgage In Chapter 13 Bankruptcy

    Posted By admin || 10-Apr-2009

    There's a Chapter 13 bankruptcy case ( Plourde, John P. and Debbie M.; In re ) that may give us a little glimpse at the strategies mortgage lenders may employ to fight modified mortgages in bankruptcy. The details of the Chapter 13 Bankruptcy case: American Home Mortgage Servicing Inc. filed a secured proof of claim of $288,396 and a prepetition arrearage claim of $30,310. The claim was secured by ...
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  • Chapter 13 Bankruptcy And Job Loss

    Posted By admin || 10-Apr-2009

    Many debtors considering bankruptcy are reluctant to file for Chapter 13 bankruptcy for many reasons, one of them the fear of a future job loss. What if a debtor files for Chapter 13 bankruptcy and then is unable to make Chapter 13 Bankruptcy payments because of a job loss? Well, there are some options for Chapter 13 bankruptcy debtors who face a job loss, lets take a look at a few: If you are in ...
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  • Facing Foreclosure? Time And Knowledge Is Critical To Saving Your Home

    Posted By admin || 2-Apr-2009

    If you're facing foreclosure, you must act quickly. In many states, such as Texas, the mortgage lender doesn't need to take you to court to move forward with foreclosure, they can simply give you notice and within 20 days you could be on the streets. When you're facing a foreclosure, the first thing you must do is contact your mortgage lender as soon as you realize that you are having trouble ...
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  • Chapter 13 Bankruptcy Plan Mistakes Can Be Costly

    Posted By admin || 18-Mar-2009

    There was an interesting case In re Delp, No. 08-31466 (Bankr. S.D. Ill. 02/09/09) in which debtors' Chapter 13 Bankruptcy plan was rejected by the bankruptcy court because it was determined that the proposed plan was made in bad faith. Basically the debtors' initial Chapter 13 bankruptcy plan proposed $1,492.43 in monthly payments. Afterwards, when the debtors' bankruptcy attorney realized that ...
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  • Household Size Changes Can Affect Chapter 13 Bankruptcy Plan

    Posted By admin || 5-Mar-2009

    In a Chapter 13 Bankruptcy case overseen by Judge Manuel Barbosa, the bankruptcy court determined that if a debtor's household size changed after filing for bankruptcy the length of their Chapter 13 bankruptcy plan could change accordingly. In this particular case a bankruptcy trustee opposed confirming a Chapter 13 bankruptcy plan because the plan's length was only 40 months as apposed to 60 ...
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  • New Debts May Be Added To Chapter 13 Bankruptcy

    Posted By admin || 25-Feb-2009

    Oftentimes a debtor who files for Chapter 13 bankruptcy will incur additional debt over the course of his/her repayment plan of up to five years. According to the bankruptcy law, certain debts that are classified as "necessary for the debtor's performance under the plan" can be included in the Chapter 13 bankruptcy plan post-petition. For example, if a debtor in Chapter 13 bankruptcy gets sick and ...
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  • Debtors Must Report Significant Income Increases In Chapter 13 Bankruptcy

    Posted By admin || 24-Feb-2009

    In the case of Midgley, Robert and Karen; In re, the bankruptcy court modified the debtors' Chapter 13 bankruptcy plan to seize $76,000 because of the debtors' failure to report income changes. When the debtors filed for Chapter 13 Bankruptcy in 2005, they had a monthly income of $5,972 and $5,517 in expenses. The bankruptcy court ordered the debtors to pay $455 per month over the course of three ...
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  • Debtors Allowed To Modify Chapter 13 Bankruptcy Plan

    Posted By admin || 24-Feb-2009

    In the case of McCully, Paul and Jennifer; In re, the debtors were allowed to reduce the amount of their repayment plan and the number of payments in Chapter 13 bankruptcy because their income changed in such a way that it placed them below the median income level. The couple in bankruptcy requested a change in their Chapter 13 Bankruptcy case after one of them (the wife) lost her job. Because of ...
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  • Chapter 13 Bankruptcy Plan Based On Current Home Value

    Posted By admin || 15-Feb-2009

    There is a very interesting case Salata, Donald R. and Jean E.; In re where a creditors' objections to a debtor's plan was overruled. In the case, the debtor in Chapter 13 bankruptcy had a home that was purchased for more than it is currently worth and had two mortgages on the home. The debtor submitted to the Chapter 13 bankruptcy courts evidence that the home was worth $250,000 based on an ...
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  • Should I Wait For Chapter 13 Bankruptcy Law Changes Before Filing?

    Posted By admin || 9-Feb-2009

    As we've discussed many times on this blog, there is legislation in the pipeline that if passed could help homeowners modify toxic loans in Chapter 13 bankruptcy. Many homeowners considering Chapter 13 bankruptcy are wondering if they should wait until the new law is passed before they file for Chapter 13 bankruptcy. The simple answer is most likely NO. Most debtors who are considering Chapter 13 ...
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  • Bankruptcy Trustee Can Increase Debtor's Confirmed Chapter 13 Bankruptcy Plan

    Posted By admin || 13-Jan-2009

    In the case Knighton, Brent E. and Kelly L. debtors in Chapter 13 bankruptcy were forced to change their bankruptcy payment plan because they received a $2,452 tax refund. The trustee who had a policy of exempting tax refunds of $2000 or less requested that the excess $452 be used to repay creditors in the Chapter 13 bankruptcy. The bankruptcy court ruled that the tax refund was disposable income ...
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  • Buying A New Car During Chapter 13 Bankruptcy

    Posted By admin || 7-Jan-2009

    There are a few situations that may require a debtor to purchase a new car while they are in a Chapter 13 bankruptcy repayment plan. One of the best reasons is that the bankrupt debtor's car was totaled in a car accident. If a bankrupt debtor is in a Chapter 13 bankruptcy and needs to purchase a new car because his/her old car is totaled, cannot be repaired and is unusable, there are a few things ...
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  • How Much Will I Need To Pay In Chapter 13 Bankruptcy?

    Posted By admin || 22-Dec-2008

    How Much You Will Pay In Chapter 13 Bankruptcy Often debtors filing for Chapter 13 bankruptcy want to know what their monthly repayment plan will cost. It's impossible for a bankruptcy attorney to give a debtor an exact dollar amount; but there are four factors that help determine how much money a Chapter 13 bankruptcy debtor will be required to pay. The first factor is what is called "Chapter 7 ...
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  • Above Median Income Debtors - Chapter 13 Repayment

    Posted By admin || 22-Dec-2008

    Many times debtors who are considered "above median income" by the bankruptcy courts worry about their ability to pay bankruptcy repayment plans and the length of time they will be required to remain in Chapter 13 bankruptcy. Because many "above median income" debtors lack disposable income or have experienced recent financial disruptions, their financial ability to pay on paper does not match the ...
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  • Don't Forget Your Chapter 13 Bankruptcy Tax Deductions

    Posted By admin || 18-Dec-2008

    Are Bankruptcy Payments Tax Deductible? If you're in a Chapter 13 bankruptcy repayment plan, don't forget to carefully examine your bankruptcy payments for tax deductions. Depending on what is being repaid by the trustee in your Chapter 13 bankruptcy, you may be entitled to deduct some payments from your current taxes. For the purpose of your taxes, payments made by your Bankruptcy trustee will be ...
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  • Chapter 13 Bankruptcy Funding Through Payroll Deduction

    Posted By admin || 9-Dec-2008

    Payroll Deduction Guidelines in Bankruptcy If you file Chapter 13 bankruptcy and are funding your bankruptcy repayment plan through payroll deduction, it is still your responsibility to make sure that payments sent, are accurate and on time. If your employer fails to withhold the payments, does not withhold enough money or sends in the payment late, you are responsible for fixing the problem. The ...
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  • Chapter 13 Bankruptcy - Keeping Your Car

    Posted By admin || 9-Dec-2008

    Since the 2005 changes in bankruptcy law, including a vehicle in a Chapter 13 bankruptcy is a lot more complicated. The bankruptcy law states that if you are filing a Chapter 13 bankruptcy and you purchased your vehicle less than 910 days ago, you are required to pay the full balance and interest you owe on the car during your Chapter 13 bankruptcy. In other words you won't save a dime. The only ...
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  • Should I Pay Off My Chapter 13 Plan Early?

    Posted By admin || 9-Dec-2008

    Many debtors in Chapter 13 bankruptcy are eager to get the process done and over with. That leads them to consider their options, such as paying off their Chapter 13 bankruptcy plan early. Although a debtor can technically pay off their Chapter 13 bankruptcy plan early, the real question is...who exactly does that benefit? Filing Chapter 13 bankruptcy can be tricky enough, but paying off the plan ...
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  • Judgments and Chapter 13 Bankruptcy

    Posted By admin || 8-Dec-2008

    Unsecured debt that has not been paid by a debtor will often go to court in an effort by the creditor to win a judgment. When a creditor wins a judgment against a debtor, that "unsecured debt" becomes "secured debt" and the creditor now has the right to take aggressive collection action against the debtor. With a judgment a creditor can garnish bank accounts, wages and place a lien on real estate ...
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  • Chapter 13 Bankruptcy - Means Test

    Posted By admin || 24-Nov-2008

    If you're a debtor filing for Chapter 13 bankruptcy you will be required to take a means test to determine if there is enough disposable income to fund a Chapter 13 bankruptcy. During Chapter 13 bankruptcy, a debtor will be required to fill out a B22 form which will generate a budget, with expense categories -- housing, food, clothing, transportation etc. Each expense category is given a dollar ...
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  • Selling Your Home While In Chapter 13 Bankruptcy

    Posted By admin || 24-Oct-2008

    Can You Sell Your Home While in Chapter 13 Bankruptcy? If you're in Chapter 13 bankruptcy you can still sell your home but you must first get approval from the bankruptcy court before you close on the property. The bankruptcy court must approve the terms of the sale and your attorney must notify all of your creditors before the property is sold. You attorney must disclose to the bankruptcy court ...
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  • Borrowing While In Chapter 13 Bankruptcy

    Posted By admin || 24-Oct-2008

    During the 3 to 5 years a debtor is in Chapter 13 bankruptcy, he/she cannot acquire new debt (credit cards, bank loans etc.) without the permission of the bankruptcy trustee. While in Chapter 13 bankruptcy the debtor is put on a credit diet so to speak to insure that he/she does not recreate the situation that led them to bankruptcy in the first place. In other words, debtors in Chapter 13 ...
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  • Delinquent Mortgage Payments And Chapter 13 Bankruptcy

    Posted By admin || 23-Oct-2008

    Delinquent Mortgage Payments and Bankruptcy After filing for Chapter 13 bankruptcy remaining current with your mortgage payment is a requirement of your Chapter 13 confirmation order. But as we all know, so much can happen over the 3 - 5 years of Chapter 13 bankruptcy. What if your income decreases drastically? What if you lose your job or become critically ill? And the big question, what if you ...
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  • Chapter 13 Bankruptcy Requires Listing All Lenders, Yes Even Mom

    Posted By admin || 17-Oct-2008

    When people think about filing for Chapter 13 bankruptcy they often only think about their debts with companies such as credit cards and mortgage lenders. But filing for Chapter 13 bankruptcy requires that you list all debts including those personal loans you took out with friends and family. Failing to list all of your personal loans from friends and family in the Chapter 13 bankruptcy filing may ...
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