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In our previous post we discussed the bankruptcy petition, the Schedule A listing of real estate/property and the Schedule B listing of personal property. In this post we will discuss property exemptions (Schedule C). Under federal and state bankruptcy laws, there are categories and amounts of property that are exempt from the bankruptcy process. […]The post Bankruptcy Filing – Property Exemptions and Schedule C appeared first on Tucson Bankruptcy Attorneys Trezza & Associates.
A recent revision to Oregon’s mediation requirements has set off an anvalanche of requests for face-to-face meetings between lenders and borrowers with delinquent mortgages. This recent amendment to the Oregon Legislature’s Foreclosure Avoidance Mediation Program requires all lenders to meet with distressed homeowners before foreclosing on delinquent mortgages. This change has recently resulted in 500 new requests for mediation.
Over the last two years and for a variety of reasons, more and more lenders had been opting for judicial foreclosure in Oregon. Until recently, lenders who commenced judicial foreclosures were able to avoid mediation, but that exemption has now been removed. Here’s hoping that the initial spike in mediation requests will continue and that getting lenders and borrowers together at the same table will help ward off foreclosures and keep Oregonians in their homes.
The original post is titled Change in Oregon Mediation Law Aids Consumers in Foreclosure , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .
Tony Sutton, 46, former chairman of the Minnesota GOP has filed for Chapter 7 bankruptcy protection. Along with his wife Bridget, the couple claims to have outstanding liabilities totaling over $2 million. During his political career as state Republican Party chairman, Sutton pushed aggressively for republican legislators to stay in line with spending based on [...]
Sometimes what begins as a Chapter 13 bankruptcy ends up as a Chapter 7. Here are some reasons why.
You go into bankruptcy with a clear sense of what you want to accomplish. Whether it’s to handle a mortgage problem, taxes, or simply because you’ve got the ability to repay some of your debts, Chapter 13 can be a big win.
See also:
But 36-60 months is a long time, and fortunes change.
Here are some of the reasons why your Chapter 13 bankruptcy may be better off as a Chapter 7 bankruptcy.
Convert To Chapter 7 If You Can’t Make The Chapter 13 Payments
When you file for Chapter 13 bankruptcy, you put together a Plan for the repayment of some or all of your debts over a 36-60 month period.
If your income goes down or your other expenses rise, you may not be able to make those payments. Rather than having the Chapter 13 trustee dismiss your case, consider whether converting to a Chapter 7 is a good idea.
See also:
Convert If The Arrears Keep Building
If you filed your Chapter 13 bankruptcy case to catch up on car or mortgage payments, you know you’re responsible for making all new payments on time.
Failure to make those post-petition payments on time will cause the lender to ask the court for permission to foreclose or repossess the car.
This would make a Chapter 13 bankruptcy less useful. If you’re going to lose the house or car anyway, consider converting to Chapter 7. This will allow you to wipe out any shortage or deficiency that might otherwise arise.
Convert If You Want It Finished
Chapter 13 bankruptcy takes up 3-5 years of your life, during which it’s difficult to take on new debt or build up your savings for the future.
If you want to just get on with your life and are willing to give up any non-exempt assets, conversion may not be a bad idea.
See also:
- Options For Keeping Your Home Or Car After Chapter 7 Bankruptcy
- California Homestead Exemption
- California Bankruptcy Exemptions
- New York Homestead Exemption
Understand The Power Of Conversion
Your rights and responsibilities differ significantly under Chapter 7 as opposed to under Chapter 13. By weighing the pros and cons, you’ll understand which remedy gives you a better deal.
Conversion isn’t for everyone, nor it is appropriate in all situations. But for the right person at the right time, converting your Chapter 13 to Chapter 7 can be a powerful way to achieve your financial goals in bankruptcy.
3 Powerful Reasons To Convert Your Chapter 13 Bankruptcy Case To Chapter 7 was originally published on Consumer Help Central. If you're seeing this message on another site, it has been stolen and is being used without permission. That's illegal, a violation of copyright, and just plain awful.
This is the case of Barb from Chicago, Illinois. Barb comes to my office with medical bills, credit card bills and most importantly, a home that she really cannot afford. She has an equity loan on her home which matures in approximately 2 years. She is considering Chapter 7 bankruptcy to eliminate her debt but+ Read MoreThe post Bankruptcy Analysis For Barb T. From Chicago appeared first on David M. Siegel.
Bringing you the most up-to-date news, tips and blogs throughout the web. Here’s your Bankruptcy Update for September 17, 2012 Green company files for bankruptcy after 115M stimulus funding granted Bridge contractor files for bankruptcy KV Pharmaceutical emerges from bankruptcy
The owner of the Catalina Corsino Italina restaurant and other eateries located in Manhattan, Jason Denton, bit off more than he could chew by opening too many restaurants leading up to bankruptcy. His lawyer states the restaurateur opened too many eateries at a time when the economy was struggling due to the Great Recession. Denton, [...]
A Wonder Lake, Ill man admits he committed fraud when he filed bankruptcy protection in 2008. James Grossmayer, 51, was charged with bankruptcy fraud after admitting he intentionally left out details about interest he had ownership of from an annuity totaling thousands of dollars. He also admits paperwork submitted to the bankruptcy court was incorrect. Grossmayer [...]
http://www.freep.com/article/20130915/NEWS01/130801004/Detroit-Bankruptcy-history-1950-debt-pension-revenue
Second Chance Legal Services is a bankruptcy law firm located in Madison Heights, MI. While we are located in Oakland County, we service Wayne, Oakland and Macomb County residents. As Detroit Bankruptcy Attorneys we specialize in helping individuals escape their burden of debt in order to get a fresh start on their bright future.
Because of our small size our clients get individual attention. You will have the same bankruptcy attorney throughout your case whether you are in a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy. Your attorney will help guide you through the bankruptcy process in order to help you get a successful discharge of your debt.
It is important to note that Macomb County Bankruptcy Attorneys, Oakland County Bankruptcy Attorneys and Wayne County Bankruptcy Attorneys all deal with the same judges and trustees. This is because all Michigan Bankruptcies are filed with the federal bankruptcy court in Detroit, MI. For this reason, it is important that you choose an attorney not by location but rather by how comfortable you feel with them when you meet. If you don’t feel comfortable with their knowledge, their experience or their demeanor you should seek out an attorney that you do feel comfortable with.
If you are interested in speaking with a Detroit bankruptcy attorney from Second Chance Legal Services, please contact our office at 248-629-6367 for a free initial consultation.
Creditors get paid in a Chapter 13 bankruptcy according to a legal pecking order. Knowing that pecking order can improve your chances for success.
If you’re thinking about Chapter 13 bankruptcy – whether because you want to or because you don’t have any other options – you know it’s designed to repay debts over time.
You probably have more than one debt, and you want to know who’s going to get what during the course of your Chapter 13 Plan.
See Also:
Here’s what you need to know about where the money goes in your Chapter 13 case.
Types Of Debts
In general, there are three major types of debts. They are:
Secured Debts: When you give collateral to a lender in exchange for borrowing money, the debt is secured by the collateral. Common secured debts are mortgages and car loans.
Priority Unsecured: Some debts aren’t secured by collateral, but the law treats them as more important than others. Some of the more common priority debts are:
- alimony, maintenance, or support;
- some income tax debts;
- customs, duties, and penalties owing to federal, state, and local governmental units; and
- claims for death or personal injury (not property damage) resulting from driving under the influence of alcohol or drugs.
General Unsecured: When you have a debt for a credit card, personal loan, medical or dental bill, or any other obligation that isn’t secured by property or owed to the government, it’s considered a general unsecured debt. This classification is essentially a slush pile of everything else you owe.
Order Of Payments
In general, payments made to creditors in a Chapter 13 bankruptcy go in the following order:
- Secured debts;
- Priority debts; and
- General unsecured debts.
Other obligations such as attorney’s fees and other administrative costs such as trustee commissions are paid through your Chapter 13 Plan as well. Some courts pay those amounts before the arrears on secured debts, whereas others pay them out over the course of your Chapter 13 Plan.
Who Gets Paid How Much?
In order for your Chapter 13 Plan to be successful, secured debts must be paid in full with interest.
In addition, all priority debts must be paid in full.
General unsecured claims are paid on a pro-rata basis. That’s best explained by example.
Let’s say your Chapter 13 Plan calls for payments of $500 per month for 60 months. That means a total of $30,000 will be paid through the Plan. If you have $10,000 in arrears on your mortgage and $5,000 due to priority creditors, there will be $15,000 left over to pay general unsecured debts.
Looking at your general unsecured debts, suppose you owe the following:
- $50,000 in student loans
- $10,000 in credit cards
- $5,000 in medical debts
Your student loans comprise about 77% of your general unsecured debt. Therefore, the student lender will receive 77% of the $15,000 left over for general unsecured creditors – $11,550.
This example doesn’t account for administrative expenses such as legal fees and trustee commissions paid through the Plan, but that’s simply to make the math easier.
The Difficulty Of Calculating In Advance
My clients always want to know how much they’ll be required to pay in a Chapter 13 bankruptcy, and understandably so. You want to have some measure of certainty, and it helps to know if you’ll be able to afford the payments required in Chapter 13.
Unfortunately, that’s not always possible.
Secured claims and priority claims, both of which must be paid in full, sometimes are uncertain when the case is filed. You may not have an up-to-date statement of the amounts due, or interest may accrue more quickly than you expect.
In addition, the interest rate on the secured claims may not be obvious when your case is filed.
For that reason, we may not always know how much you’ll need to pay over the life of your Chapter 13 bankruptcy case.
Rest assured, however, that we’ll go through the claims filed as soon as they come in so that we can get a handle on things as quickly as possible.
How Creditors Get Paid In A Chapter 13 Bankruptcy was originally published on Consumer Help Central. If you're seeing this message on another site, it has been stolen and is being used without permission. That's illegal, a violation of copyright, and just plain awful.
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