Chapter 13 Bankruptcy Information
If you have sufficient income to repay most of your debts but are unable to meet the current demands of all creditors, Chapter 13 bankruptcy may be the approach for you. You will file your petition with the bankruptcy court along with a reorganization plan. Your reorganization plan will demonstrate to the court how you expect to repay your debts over a three to five-year period of time. You must also show the court that you have enough income to allow you to comply with the terms you have presented in your plan.
If you have met all the terms of your plan, at the end of your repayment period, remaining unsecured debt will be discharged. On the day you file your bankruptcy petition, all collection action by all creditors must stop. Creditor collection action cannot be conducted during the entire time the plan is in effect.
If you are struggling to pay your auto loan debt, you are not alone. According to the New York Federal Reserve, more than 7 million people in America are seriously delinquent on their auto loan debt through the end of 2018. A serious delinquency is defined as being at least 90 days past due on the loan. Subprime Lenders, High-Risk Borrowers People under age 30 saw the sharpest rise in delinquencies while those over age 30 saw their delinquencies rise more slowly. The rise in delinquencies may be due to the presence of subprime auto lenders in the market. These…Read More
One of the most common concerns my clients have is whether or not filing a bankruptcy case will affect their job. The short answer is this; no, filing a case should not have any impact. The Bankruptcy Code at 11 U.S.C. §525 specifically prohibits employers from discriminating against any person who has filed for bankruptcy relief. Your employer would be breaking a federal law if they fire you or discriminate against you as a result of your bankruptcy. Protection Against Discriminatory Treatment (a) Except as provided in the Perishable Agricultural Commodities Act, 1930, the Packers and Stockyards Act, 1921, and…Read More
Here are a few pointers to help you at the start of the Chapter 13 bankruptcy process. 1. Be Patient When I said bankruptcy “process,” I really meant it’s a process. Filing for bankruptcy relief is comparable to filing your taxes. For some people, it can be a relatively swift and easy process, but for the majority of folks, it will take time to gather the necessary documents and information. Once you have provided all the information to your attorney, it will still take some time to get the bankruptcy forms prepared and to review everything for accuracy. A bankruptcy…Read More
If you are like me, you love watching HGTV’s “House Hunters”. It’s fun to see different houses and walk into “the one” and feel at home. Most Americans dream of being a homeowner. When you are in the middle of a financial struggle, Chapter 13 can be the answer to getting a fresh start, but many are hesitant because of their dream of buying their own home. To buy or incur new debt to purchase a home in the Middle District of Alabama, a motion must be filed with the court seeking permission to do so. Court-Deciding Factors Factors the…Read More
There are four costs to consider when filing for bankruptcy. The four fees are credit counseling/personal financial management fees, filing fee, attorney’s fee and the trustee’s fee for administrating your case. Credit Counseling/Personal Financial Management Fees There are two counseling courses that must be completed with every bankruptcy. A credit counseling course must be completed before you file bankruptcy. When you complete this credit counseling a certificate will be filed with your bankruptcy petition proving you completed the course. This course focuses on your current finances and spending. The second course, personal financial management must be completed after you file…Read More
Dina Lohan filed a petition for Chapter 13 Bankruptcy in September 2018. But on the eve of Christmas, she received a lump of coal from the presiding bankruptcy judge in the form of a dismissal of her case. The mother of the infamous actress, Lindsay Lohan, filed for Chapter 13 relief in an attempt to save her Long Island mansion from being sold in a foreclosure auction. Her case was dismissed for a variety of reasons including failure to file required documentation of her income and tax returns with the bankruptcy court. But one of the most important reasons for…Read More
An important issue as it relates to a chapter 13 bankruptcy and mortgages was recently decided by the 11th Circuit Court of Appeals in Dukes V. Suncoast Credit Union (In Re Dukes.) The issue, in its most simplistic form, is this: What happens to a mortgage debt if a chapter 13 is filed and provides for the mortgage payment to be paid directly by the debtor in bankruptcy to the mortgage company? What happens if the debtor falls behind on the mortgage and/or the home is vacated during the life of the chapter 13 plan? A Lesson: Dukes V. Suncoast…Read More
Dina Lohan, the mother of the infamous actress Lindsay Lohan, filed a petition for Chapter 13 Bankruptcy earlier this week. Dina, who claims to be in the hole for more than $1.5 million, filed her bankruptcy petition just in time to save her Long Island mansion from being sold in a foreclosure auction. How Does a Bankruptcy Petition Stop a Foreclosure? When a Chapter 7 or 13 Bankruptcy petition is filed, an automatic stay immediately goes into effect. If the petition is filed before the house in foreclosure is sold, the automatic stay will stop the foreclosure process–potentially saving the…Read More
Yes, in some circumstances, filing either a chapter 7 or chapter 13 bankruptcy will allow you to get your suspended driver’s license reinstated. The Domino Effect of a Suspended License Even though it is a requirement in many states to carry a bare minimum of liability insurance, unfortunately, many folks are just simply unable to afford to do so. Many times, this results in an uninsured auto accident. If the uninsured driver is at fault and unable to pay for the damage to the other party, it can result in several bad things to include a lawsuit, judgments and even…Read More
What is a Statement of Financial Affairs? Sounds pretty simple and harmless, right? Actually, it can be very detailed and complicated. If you have filed a Chapter 13 or Chapter 7 Bankruptcy, you have had to complete a Statement of Financial Affairs for Individuals Filing for Bankruptcy and, most likely, your attorney has stressed the importance of accurately answering all of the questions asked on the Statement of financial affairs. What Does This Statement Consist Of? The statement consists of only twenty eight yes or no questions. A “yes” answer requires elaboration. Therefore, this can be one of the most…Read More
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