Filing a bankruptcy case is the first step in stopping a foreclosure on your home and the imposition of the “automatic stay” on collection activity stops the mortgage lender dead in their tracks, but for how long? Not long enough unless you do what the Bankruptcy Code requires. Make your post petition mortgage payments on [...]
Chapter 13 Bankruptcy
In contrast to the relatively quick chapter 7 process, chapter 13 bankruptcy is a reorganization of a consumer's finances that allows them to pay back something to creditors over a 3-5 year period. Consumers who earn income that is less than the state average, for a family of their size, enter into a payment plan that lasts for 3 years. Consumers with income that exceeds the state average, for a family of their size, enter into a payment plan that lasts for a period of 5 years. With the help of a bankruptcy attorney, chapter 13 filers create a payment plan that allocates their disposable income to make a monthly, consolidated payment to creditors. We're sure the reader would like to know: what constitutes disposable income? For purposes of bankruptcy, disposable income means what you have left over after subtracting allowed expenses from your gross earnings. some expenses will be determined by your actual out-of-pocket costs, others will be set by national local standards as calculated by the IRS. The less disposable income you have, the lower the percentage of unsecured debts you pay back to creditors throughout the life of your chapter 13 plan. At the end of the process, debts that remain outstanding are discharged. Below, we have organized a large library of articles that been written by attorneys on the subject of chapter 13 bankruptcy. Feel free to browse the information and, if you don't see what you're looking for, please submit a question to the QA forum. Thank you for visiting the National Bankruptcy Forum.
Despite What You May Have Heard, Chapter 13 Has Advantages… Most people don’t want to file for bankruptcy at all, but if pressed, will choose chapter 7 over chapter 13 every time. After all, who wants to be in bankruptcy for 3-5 years? At first blush, it certainly sounds like a raw deal. Lori Patton [...]
The Chapter 13 Trustee for the Middle District of Tennessee (Nashville) is being sued by Bank of America for forcing the mortgage company to produce the underlying note to mortgages, or face being treated as an unsecured creditor in the bankruptcy pot or plan. Nashville Business Journal has the story here. This case will be interesting [...]
What City and State Should I Look For a Bankruptcy Attorney In? Maybe you have recently relocated to be closer to family or friends, were forced to move for a job or, simply have ties to two locations. To make matters a little more uncomfortable, you’re in financial distress and are considering hiring a bankruptcy [...]
Lien Stripping in Bankruptcy is Court Ordered Mortgage Modification One of the advantages to filing chapter 13 bankruptcy is the ability to strip an “under secured” junior mortgage lien. When a homeowner owes more on their first mortgage than their home is worth, Chapter 13 allows junior mortgages to be removed or “stripped” which has [...]
Will the government be able to provide you with mortgage relief? Maybe, but maybe not. Waiting for your mortgage lender or a government program to fix your defaulted mortgage problem or return your equity that was lost by the declining housing market? Will that be a successful strategy? Maybe and maybe not. While there certainly [...]