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When Chapter 13 Bankruptcy Is Used Chapter 13 is a reorganization under the United States Bankruptcy Code. Chapter 13 allows you to repay debt over a three to five-year period. It’s most commonly used to save a home that’s been in foreclosure or to save a vehicle that’s been repossessed or to stop collection activity+ Read MoreThe post When Chapter 13 Bankruptcy Works Really Well appeared first on David M. Siegel.
Ashburn is in the heart of eastern Loudoun County, Virginia. Loudoun is the highest income county in America. The median household income in Ashburn is right at $100,000 a year. Ashburn bankruptcy rate–one family in every ten since 2007 So you might be surprised that 169 individuals and couples in Ashburn filed bankruptcy 2013. […]The post Ashburn Bankruptcy Information: Bankruptcy and High Income Families appeared first on Robert Weed.
After your bankruptcy papers are filed, the court will send a Notice of the Appointment of a Trustee and Notice of the Section 341(a) Meeting of Creditors. Your next step is to make sure you keep any paycheck stubs, direct deposit stubs, bank statements, etc. We will let you know about any other payments that need to be paid within a month or two after your case is filed. Your actual chapter 13 plan payments generally begin within 30 days after you file your petition. We sign you up for the credit counseling course and you will need to complete this course within a specified period of time.
After your bankruptcy papers are filed, the court will send a Notice of the Appointment of a Trustee and Notice of the Section 341(a) Meeting of Creditors. Your next step is to make sure you keep any paycheck stubs, direct deposit stubs, bank statements, etc. We will let you know about any other payments that need to be paid within a month or two after your case is filed. Your actual chapter 13 plan payments generally begin within 30 days after you file your petition. We sign you up for the credit counseling course and you will need to complete this course within a specified period of time.
A credit counseling session must be taken prior to a bankruptcy case being filed. You want to make sure that you do not take the credit counseling too far in advance of your bankruptcy filing. The bankruptcy code mandates that the credit counseling session must be completed within 180 days prior to your actual filing.+ Read MoreThe post I Am Considering Filing Bankruptcy, When Should I Take The Pre-Filing Credit Counseling? appeared first on David M. Siegel.
Second Mortgage “Stripping”
by Steven Taylor [email protected]
Law Office of Steven Taylor, PC
One of the advantages of filing an Indiana bankruptcy under Chapter 13 is that an entirely unsecured second mortgage, or other junior mortgage, can be “stripped” from your homestead or other real estate. This mortgage is then treated by the Chapter 13 plan as an unsecured claim, the same as a credit card or other unsecured debt. Consequently, it only has to paid in part rather than being paid in full as for most mortgages. Upon the completion of the plan, the lender is required to release its lien interest against your property. In Indiana, “stripping” unsecured second mortgages cannot be done in Chapter 7 cases. 
The bankruptcy courts in Indiana allow this avoidance of the lien to occur by motion practice or by confirmation of the Chapter 13 Plan. Upon objection by the creditor, it is necessary to show that the real estate’s market value is less than the entire balance owed on the liens that have priority over the to be avoided secured lien interest. This means that in deciding whether to seek to strip off a second mortgage, an appraisal of your home may be necessary.
Second mortgage lien stripping is allowed by bankruptcy code sections 506 and 1322(b). It requires committing to a three to five year Chapter 13 repayment plan, where the now-unsecured second mortgage is paid based upon your ability to repay it, the same as most of your other debts.
If you are trying to restructure your debt to make sure you can afford to keep the necessities of life, it makes sense for you to obtain a free consulation at our offices to discuss your options.
Last updated 1/31/2014
Filed under: Chapter 13 Bankruptcy Tagged: Avoid 2nd Mortgages, Chapter 13 Bankruptcy, Indiana Chapter 13, Indianapolis bankruptcy attorney, Kokomo bankruptcy attorney, Lien Strips, Underwater Homes 
With the economy still struggling to bounce back, many people have decided to start their own business when they were unable to gain employment. Having an entrepreneurial attitude during an economic downturn can be beneficial with proper planning. Yet, even self-employed individuals and those with a business run into financial problems and wonder if bankruptcy [...]
This is a case of Santana Magentey who comes to me from South Ellis Ave., Chicago, IL. Santana is coming to me for a free, initial consultation regarding bankruptcy. She basically wants to know if she can re-file a chapter 7 bankruptcy case to obtain a new start. Let’s take a look at the facts+ Read MoreThe post Case Study For Santana From Chicago, Illinois appeared first on David M. Siegel.
When you file for chapter 7 bankruptcy and you have a secured vehicle, you have three choices which you can make. You can either reaffirm on the debt, you can redeem on the debt or you can surrender the property in full satisfaction of the debt. If you decide to reaffirm the debt on your+ Read MoreThe post Should I Be Reaffirming On My Car If I’m Upside Down? appeared first on David M. Siegel.
Bankruptcy offers protection from your creditors and a chance to achieve your desirable outcome. But when dismissal looms, your future may not look so bright.
When you file for bankruptcy, you get the benefit of knowing that your creditors can’t take any action against you.
In return for the protections of the bankruptcy laws, you’ve got certain responsibilities. Fail to live up to your end of the bargain and you may find your case kicked out of court.
That’s dismissal – getting your bankruptcy case thrown out.
Before you decide whether that’s a good thing or not, you need to know what dismissal means for you down the road. These are the cold, hard realities of dismissal.
Creditors Can Take Action After Dismissal
When you filed your case, your creditors got notification that they couldn’t take action against you.
- No phone calls.
- No collection letters.
- Foreclosures had to stop.
- The car couldn’t be repossessed.
- Wage garnishees were halted.
- Bank account levies were lifted.
Though some types of legal action could continue – divorce-related matters, child custody and criminal cases to name a few – for the most part, it was as if someone had sprinkled magic pixie dust.
You weren’t officially out of debt but it sure felt that way.
Once a bankruptcy case is dismissed, however, that magic pixie dust is washed away.
- Creditors can start calling again.
- The car can be repossessed.
- The wage garnishee will reappear.
- The bank account can be levied.
- The foreclosure will continue.
And you’ll still owe the debts that you had hoped to wipe away.
You May Not Be Able to File Bankruptcy Again
There are different types of dismissal. Some dismissals allows you to file for bankruptcy again right away, others may prevent you from filing again for a period of time.
And if the judge decides there’s a good reason, you can be prevented from filing for bankruptcy at all again in the future and wiping out these debts.
If You Can File, Your Protection May Be Limited
If you have a case dismissed once in a year, the automatic stay may be temporary the second time around unless the judge extends it.
And if you have more than one bankruptcy case dismissed in a year, you may not get the protection of the automatic stay at all.
A Controllable Force
Don’t forget the beauty of a bankruptcy dismissal.
In a Chapter 13 repayment bankruptcy you can voluntarily dismiss your case if you no longer need the court’s protection.
You decide to sell the house or refinance, so you don’t need to worry about the pending foreclosure anymore. Or a windfall makes it possible to repay your debts on your own.
You don’t get the option to voluntarily dismiss a Chapter 7 bankruptcy, but chances are good that if you’re in a Chapter 7 then it’s for a good reason. Don’t mess up your chance to end your bill problems – pay attention to what your supposed to do, and things will work out for you.
In the end, it comes down to understanding the impact of dismissal. Use it as a tool when necessary, and avoid it otherwise.
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