Debt Limits in Chapter 13, is it time to File Chapter 11?

In a Chapter 13 case, an individual must have regular income and must owe less than a certain amount of debt in some categories. The maximum amount of secured debt (debt secured by collateral – like your home and cars) allowed in a chapter 13 bankruptcy is currently $1,010,650.00. The maximum allowed unsecured debt allowed in a Chapter 13 is $336,900.   USC section 506. Defines what is an unsecured debt.  With respect to the value of Real Property that equals the amount of the loan attached to that Real Property, there is no unsecured portion contributes to your unsecured debt. For example, if you own a house with a value of $500,000 and the loan attached to that property is $250,000, the difference of those amount is considered unsecured debt, which is added to the unsecured debt that you already have.
Source: piklawgroup.com

Video: The Chapter 13 Bankruptcy Self-File E-Guide

Dealing with Divorce during Chapter 13 Bankruptcy

It is possible the bankruptcy attorney would file a Motion to Withdraw due to conflict of interest. During Chapter 13 your bankruptcy attorney represents the couple, yet a divorce could be considered a conflict of interest. If the motion is filed each spouse would seek their own attorney to continue their case. Another possibility is to have your case bifurcated or split. This may happen if you and your spouse filed together to meet income qualifications for the Chapter 13 filing or you failed to pass the means test. So if your case is split you could qualify for a conversion to Chapter 7 bankruptcy depending on your income. You may even continue with your Chapter 13 bankruptcy individually if split into two cases.
Source: allmandlaw.com

Do Not File Chapter 13 if What You Need is Chapter 7

At first blush it appears that this lady was encouraged to file Chapter 13 when she really needed to be in Chapter 7, and that the only really beneficiary here is her lawyer.  On the other hand, what options did she have if she needed bankruptcy protection to stop a wage garnishment but she did not have the money to file Chapter 7?   Bankruptcy judges around the country have generally held that attorneys may not “finance” Chapter 7 fees by taking post-dated checks or post-filing installments.  Should the lawyer be vilified because his client waited far too late to seek bankruptcy counsel and a low entry-fee Chapter 13 is the only practical option?
Source: bankruptcylawnetwork.com

Help! I Need to File Bankruptcy But Already Did One a Few Years Ago

But Chapter 13 provides a number of other benefits distinct from the discharge of debts. For example, it stops a foreclosure and gives you years to catch up on your mortgage arrears. It also stops extremely aggressive collection of unpaid support payments, including the suspension of professional/occupational/driver’s licenses, again giving you years to bring it current. It may be able to significantly reduce what you pay for your vehicle through a “cram down.” For these and other reasons it can make a lot of sense to file a Chapter 13 case while knowing that you’ll not get a discharge of any of your debts. You may not even have any debts to discharge, but just need one or more of those other powerful benefits.
Source: petersonlawhawaii.com

Crown Point developer files for Chapter 13

The 49-year-old developer and his wife have been embroiled in controversial development claims in connection with the Stillwater subdivision in Crown Point, along with the Silverstone Crossing development in Hobart. Residents of those facilities sued the city of Crown Point, along with the developer and some of his partners, because of alleged negligence that led to the homes’ flooding. Protection from future flooding was sought in connection with the lawsuit.
Source: affordablebankruptcychicago.com

Should you file Chapter 13 or 7? : Law Office of Michael West P.C.

Bankruptcy protects the debtor from creditors attempting to collect debts against the debtor. As soon as a debtor files for bankruptcy protection, creditors can no longer sue the debtor, file a foreclosure proceeding against a debtor’s property or try to repossess a debtor’s vehicle. After all the debtor’s unsecured debts have been discharged by the bankruptcy court, a creditor would be considered in contempt of court for pursuing collection of such discharged debt. However, a debtor is responsible for paying a creditor when the debtor reaffirms secured debt such as a mortgage on the debtor’s property or a loan on a vehicle owned by the debtor.  There are certain statutory debts that cannot be discharged in bankruptcy such as alimony, child support, federal taxes (unless they are more than three years old), student loans, court fees, costs or debts relating to fraud, embezzlement or personal injury negligence caused by the debtor to another party.
Source: lawofficeofmichaelwest.com

Differentiating Between Chapter 7 and Chapter 13 Bankruptcy

Here again, the main benefit of Chapter 13 over Chapter 7 is that the petitioner will be able to keep his properties that would or else be sold off to repay the unsecured creditors whom you owe money. A debtor who will file Chapter 7 can only retain the non-exempt properties by paying the trustee with the cash value of the property. You can repay your debt according to the new repayment plan that will be set by the Bankruptcy court. You can even feel satisfied about paying back a portion of your debt through this type. You can classify your creditors according to the priorities but only if this is accepted and allowed by the court. The automatic stay that will be imposed on the debtor will also be extended to the co-debtors who have even guaranteed the loan on behalf of the debtor.
Source: thestudentappeal.com

Indiana Bankruptcy Blog: Will My Chapter 13 Payment be Higher than my Debt Consolidation Payment?

         Probably Not.  Unfortunately, a LOT goes in to determining what a debtor’s Chapter 13 trustee payment would be each month if he or she filed a Chapter 13 bankruptcy so it is hard to say without doing the math.          To refresh, a Chapter 13 Bankruptcy is one in which you make a payment each month for 36 to 60 months (typically 60) to a trustee who in turn pays out your creditors according to a repayment plan that you must submit to the bankruptcy court.  So, it makes sense that one question asked by every person I meet with who may need to file a Chapter 13 is, “what will my Chapter 13 payment be if I decide to file Chapter 13?”  This is an excellent question, but it’s not one I’ll be able to answer at our first meeting.  I previously wrote a blog on how your Chapter 13 repayment is determined in an Indiana Bankruptcy which you can read here.  But the short answer is that there are 8 hour classes lawyers will sometimes attend dedicated to this “simple” question.  There are several calculations and even then it is not a completely black and white answer.  Bankruptcy attorneys must think critically and creatively to set up the most effective and advantageous Chapter 13 plan for his or her client.          With that being said, I can say that I do not recall any Chapter 13 case I have filed where the debtor’s Chapter 13 monthly trustee payment was higher than any payment he or she was making to a credit counseling company prior to filing bankruptcy.  The bottom line is, that it is not a lot of fun to file a Chapter 13.  You aren’t going to have bunches of money left over to go on vacations.  You aren’t going to be able to go out to dinner a lot.  However, you should be able to pay your mortgage payment, car payment, buy food, buy medicine, pay for children’s school expenses, buy gas and maintain you vehicles, and the other things that you need to pay for in order to live.  But the tradeoff is that at the end of the repayment plan that you won’t owe any more on your debt (with the exception of student loans, mortgages, other secured debts that take in excess of 60 months to pay, and any other non-dischargeable debts).  In cases where my clients have had tens of thousands of dollars of unsecured debt if not one hundred thousand dollars of unsecured debt it has been a good trade-off for them.            Your bankruptcy attorney will be able to calculate what he or she expects your Chapter 13 payment will be prior to the time you file bankruptcy.  Therefore, if you think the payment is too high, you don’t have to file bankruptcy.  The option is always yours, but I am here to give you the options.  If you would like to set up a free initial bankruptcy consultation to review your situation with me at our Carmel office give me a call at 317-575-8222 x 12.
Source: blogspot.com

Things To Think About When Considering Bankruptcy

Consider Chapter 13 bankruptcy, if you chose to file. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. Just know that missing one payment could cause your case to be dismissed.
Source: sibensiben.com

Preferable to file a Chapter 13 bankruptcy instead of Chapter 7?

The Lanigans are based in Winter Park but work with clients throughout Florida in cities from Altamonte Springs to Boca Raton to Cape Canaveral, Clearwater, Cocoa Beach, Daytona Beach, Deland, Deltona, Fort Lauderdale, Fort Meyers, Gainesville, Heathrow, Jacksonville, Jupiter, Kissimmee, Lake Mary, Maitland, Melbourne, Miami, Mount Dora, Naples, New Smyrna Beach, Ocoee, Orlando, Palm Beach, Sanford, St. Petersburg, Tampa, The Villages, Vero Beach, Windermere, to Winter Springs. If there is a city not listed, be sure to call to find out if the Lanigans serve your area.
Source: laniganpl.com

Find a Worthy Orlando Bankruptcy Attorney

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Source: bankruptcy-lanigan.com