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Chapter 13 bankruptcy - How to keep assets and repay debt

When you're experiencing debt problems and cannot make the payments in full, or as fast as your creditors want, you might want to file Chapter 13 bankruptcy. To learn what it's all about, take a look at the Chapter 13 bankruptcy information below:


Chapter 13 bankruptcy definition

Unlike Chapter 7, Chapter 13 bankruptcy doesn't require you to sell off assets to pay off your debts. Instead, the court appointed trustee negotiates a repayment plan with your creditors that will allow you to repay your debts within 3-5 years. Chapter 13 is essentially a court supervised repayment plan.


When to file Chapter 13

You can file chapter 13 if you're in any of the following situations:
  • Your debts cannot be discharged in Chapter 7.
  • You have property lien exceeding the value of the collateral.
  • You haven't filed taxes for years.
  • You intend to pay off your dues on mortgage/car loan.
  • Your total asset value exceeds the exemptions.
  • Your income is high enough for filing Chapter 7.
  • Most of your assets are non-exempt, and may lose them if you file chapter 7.


How to qualify for Chapter 13

You qualify for Chapter 13 bankruptcy if you satisfy the following:
  • Credit Counseling: You must enroll in a credit counseling course 6 months before filing Chapter 13.
  • Means Test: Your gross monthly income should exceed the State Median Income of your family size. Find out more on how to check whether you qualify for Chapter 7 or 13.
  • Secured and Unsecured debt: In order to qualify for Chapter 13, you must have less than $360,475 in unsecured debts and less than $1,081,400 in secured debts.
  • Previous filing: You can file another Chapter 13 case 2 years after a previous Chapter 13 case has concluded and 4 years after Chapter 7 case has been discharged.


How Chapter 13 Plan works

In addition to the other filing requirements for Chapter 13, you must also provide a proposed repayment plan either at the time of filing or within 15 days of filing. The proposed repayment plan should also be submitted to those creditors whose obligations will be included in the bankruptcy estate.

Your debts must be repaid according to the statutory repayment priority as given below:

  1. The Bankruptcy Court: The first creditor to be repaid in a bankruptcy case is the court. This includes the filing fees and the money owed to the bankruptcy trustee for his/her services in managing the case.
  2. Support obligations: These are obligations that have arisen due to a court ordered obligation, usually spousal or child support back payments.
  3. Back Taxes: These are any amounts you owe to the IRS or state taxing authorities due to unpaid taxes.
  4. Unsecured creditors: The last group to be paid is your unsecured creditors. In some cases you may be obligated to pay interest to your creditors due to the automatic stay.

When creditors can reject your plan
Creditors can reject your Chapter 13 Plan only if:

  • The Plan materially alters the terms of the debt or requires the disposal of a lien before repayment.
  • The amount offered under the repayment plan is less than the creditor would receive under Chapter 7.
  • The creditors have evidence that the Chapter 13 repayment plan was not proposed in good faith.

Most of the creditor's objections to your proposed plan are resolved through negotiation between your creditors and the trustee. If the parties cannot compromise, the judge decides whose interest should control.

How much to pay in Chapter 13 plan
Most of your creditors, especially the court and any judgment debtors (like an ex-spouse), will be entitled to 100% of the amount you owe them. How much your unsecured debtors are entitled to depends on the amount of disposable income you have to put toward the plan every month and how long your plan lasts. The time it takes for you to repay all of your debts under a Chapter 13 bankruptcy plan depends on how much you can afford to pay each month.

When to start payment
You need to make the first payment to the trustee within 30 days of filing Chapter 13. Within 40-45 days of the 341 meeting with your creditors, the bankruptcy trustee and judge will confirm whether or not your plan is acceptable.

Plan modification & Hardship discharge
You can get the trustee's approval to modify the plan if you have severe hardship like a serious illness or you lose your job. However, if you're unable to complete the plan due to reasons for reasons beyond your control, and if modification isn't possible, you can request a Hardship discharge. In order to get a hardship discharge, your creditors must have received as much as they would have if you had filed for Chapter 7.


Pros and Cons of filing Chapter 13

There are several pros and cons to filing for Chapter 13 are:

Pros:

  • Pay back debts: You repay debts in lower payments.
  • Stops legal action: You are protected from collections, judgments, foreclosure, etc.
  • Retain assets: Real and personal property can be retained.
  • Additional debts discharged: Debts nondischargeable in Chapter 7 can be discharged in Chapter 13. These debts include those for willful and malicious injury to property, debts due to a property settlement in divorce or separation, and those incurred to pay nondischargeable tax liabilities.
  • Protect cosigner: Cosigners on credit cards, payday loans, and other consumer debts are protected under Chapter 13.
  • Tax deduction: You will not have to pay taxes on debt forgiven during bankruptcy.

Cons:

  • Tax Liens: You will not be able to avoid paying any tax liens during Chapter 13.
  • Dismissal: If you stop making payments under Chapter 13 Plan, the court can dismiss your case or convert it into a Chapter 7 bankruptcy. Your case can also be dismissed if you don't pay post-filing obligations such as alimony, child support, or taxes. Learn about Chapter 13 dismissal.
  • New credit: You cannot take out new credit and incur new debt without court approval.

Chapter 13 bankruptcy helps you restructure your debt payments and become current on your debts. Chapter 13 has less of an impact on your credit score than Chapter 7. However, prior to filing, make sure it is the only way you can get rid of your debts.

Related Forum Discussions:
Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] that is charged off. I owed 75000 and the original pmt was 650 a month. Can I use this in calculatilng a means test for [url=http://www.mortgagefit.com/bankruptcy/chapter7.html]chapter 7 bankruptcy[/url]?

Like | Dislike | Share | Posted: Mon, 01/18/2010 - 21:27 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi luz,

You can apply for a Chapter 13 bankruptcy. However, before taking any decision, you should contact an attorny and take his opinion in this regard.
To know more about the concept of cram down, you can check out the given page:
http://www.mortgagefit.com/california/ch13-investmentproperty.html

Hi anonymous,

The unsecured debts can get discharged in Chapter 13. Once they get discharged, you won't have to pay your creditors anymore.

Hi Melissa,

An automatic stay will help you in keeping your creditors at bay. They won't come after you while you are in bankruptcy. If you ask your bankruptcy court to remove the stay, the lender can come after you and foreclose the property. Thus, before taking any decision, I would suggest you to contact your bankruptcy attorney and take his opinion in this regard.

Like | Dislike | Share | Posted: Thu, 02/04/2010 - 02:42

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can I file chapter 13 if I am current on mortage, vehicle and other bills

Like | Dislike | Share | Posted: Sun, 04/11/2010 - 09:29 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

can i get a paydayloan during chapter 13

Like | Dislike | Share | Posted: Sun, 03/27/2011 - 09:42 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

If you've already surrendered the property and if the lender has sold it off, then you won't be able to save the property any longer. If case you haven't surrendered the property yet, you should get in touch with your bankruptcy attorney, trustee and lender and try to get a payment plan which will help you in paying off the dues and saving your property.

Thanks

Like | Dislike | Share | Posted: Fri, 06/18/2010 - 22:45

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If we cannot pay all unsecure debts 100 percent and we own an interest in
my husband's mothers house from his dad, will we have lien put on the house for the remainder?

Like | Dislike | Share | Posted: Wed, 07/14/2010 - 12:37

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am recently divorced and have three loans with my ex which he can not refinance to take my name off of. One is our house that he was awarded and he isn't paying on. I'm looking into filing chapter 13 bancruptcy becuase I have two small children and my child support is about to go down, which means I will be negative each month even after I file bancruptcy and my debts get discharged. My questions are:
1. If I have items that are not listed on the exemptions list, such as it says you can only have 2 beds, and I have three becuase I have two children. Will they take that property from me? Or make me pay for it again even though it is paid and I do not owe on it?
2. It also states that you can only have $150.00 in a bank account when you file for bancruptcy and no outstanding checks, but I have to pay my child care with a check as well as my rent with a check, how do I pay my bills?
3. Once I'm in bancruptcy and my plan has been approved, can I start saving up money again (I live paycheck to paycheck) to pay bills or will they take that money too?
4. When I file for taxes in 2011 will my taxes be taken and if so will they be applied towards my bancruptcy plan?
5. If I end up paying off my plan earlier because my taxes took a big chunk of money out of my plan to pay, can I be discharged earlier than the original plan date?
6. I had to buy a new car cause my old one is breaking down, it's KBB value is more than the $5,000 it states you can have, are they going to take my car away from me becuase of that, even though I want to keep it and pay for it?

Thanks for the help1

Like | Dislike | Share | Posted: Tue, 05/04/2010 - 15:53 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

You will have to make your monthly payments on time in order to keep your property. Depending upon your income, the lender will let you know how much you will be able to afford. You can check out the given calculator to know how much home you would be able to afford:
http://www.mortgagefit.com/calculators/howmuch-afford.html

There is a debt to income ratio which is popularly known as the dti ratio. As far as I know, the dti ratio for conventional loan is 28/36 and for FHA loans, it is 31/43.

Like | Dislike | Share | Posted: Fri, 03/19/2010 - 02:22

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

Your creditors would be the best to answer this query.

Thanks

Like | Dislike | Share | Posted: Tue, 05/18/2010 - 23:26

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If I file a chapter 13, will I have to pay a mortgage payment and my trustee fee?

Like | Dislike | Share | Posted: Sun, 01/30/2011 - 21:11 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi tobiasm!

Welcome to forums!

If you want to start afresh, then Chapter 7 is a good option for you. However, you'll have to clear the Means test in order to file [url=http://www.mortgagefit.com/bankruptcy/chapter7.html]Chapter 7 bankruptcy[/url]. However, if you want a repayment plan and save your properties, then you should go for Chapter 13. You should contact some other bankruptcy attorney and take his help to decide which chapter of bankruptcy filing will be best suited for you.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 12/27/2010 - 21:41

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am troubled on whether to file or not.

If I file Chapter 13 does my child have to stop cheer? In otherwords are luxury expenses guided by the trustee? So if my family belongs to a golf club and my son and other daughter are in high school golf do I have to cancel my membership? This is how they get to practice. Also I have a motorcycle that is paid off. Do I have to sell it?

Like | Dislike | Share | Posted: Sun, 11/07/2010 - 21:56 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi worried,

I think you should follow the instructions given to you by the insurance company. If you use the money for any other purpose, there are chances that it would be considered as a fraud. You can even speak to your bankruptcy attorney and take his opinion in this regard.

Thanks

Like | Dislike | Share | Posted: Mon, 10/26/2009 - 21:06

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I would suggest you to contact a tax adviser and your bankruptcy attorney in this regard and take their opinion. They will be able to guide you in a better way in this regard.

Like | Dislike | Share | Posted: Fri, 04/16/2010 - 02:20

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

How long does it stays in your credit and does it count form the date you filed or from the date after it is discharged?
Does the trustee puts a lien on your property?

Like | Dislike | Share | Posted: Sat, 09/18/2010 - 03:53 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jarod!

Welcome to forums!

The creditor cannot force you to file Chapter 7. If you do not qualify for the option of Chapter 7, then you will have to file Chapter 13. The trustee will decide the payment plan depending upon your financial situation after discussing with the creditors/lenders.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 09/15/2011 - 22:38

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

As far as I know, you will be able to use the annuity that matures in 2016 to satisfy your Chapter 13 obligation.

Like | Dislike | Share | Posted: Mon, 10/31/2011 - 00:31

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi CONTEJVMOM,

Chapter 13 helps you in reorganizing your debts. Your trustee won't sell off your property to pay off your creditors. Rather, you would get a payment plan from your creditor which would help you in paying off your debts.

Thanks

Like | Dislike | Share | Posted: Tue, 03/09/2010 - 23:42

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Deborah...as far as I know, IRA accounts are protected under the bankruptcy law. Your creditors will not be able to touch your IRA account though you file for Chapter 7 bankruptcy.

Like | Dislike | Share | Posted: Fri, 10/02/2009 - 23:38

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

if filing a chapter 13 how much assetts free and clear can a married couple have as we own 3 cars and 1 motor cycle thank you vivian

Like | Dislike | Share | Posted: Tue, 03/09/2010 - 20:22

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can a mortgage company get a relief from stay for past arrearages, if you are making payments to the bankruptcy court? Are they allowed to post current mortgage payments towards the amount that was included in the bankruptcy?

Like | Dislike | Share | Posted: Sun, 04/11/2010 - 11:52 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can i use an annunity that matures in 2016 to satisfiy my chapter 13 obligation? I can withdraw 6% a year which would take me three payments ot complete my obligation. I live in Tn,

Thanks for your help.

Like | Dislike | Share | Posted: Sat, 10/29/2011 - 06:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a sale date of 9/13/10. I was in an accident and hospitalized and treating and have been unable to attend credit counceling 6 months prior to filing bk. Are there exceptions

Like | Dislike | Share | Posted: Tue, 08/24/2010 - 16:27 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Who can we get to [url=http://www.mortgagefit.com/refinance.html]refinance[/url] our home while in a chapter 13. We will be going into our 3rd year of chapter 13 in a few months.

Like | Dislike | Share | Posted: Sat, 10/16/2010 - 17:07 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

What happens to the approved Chapter 13 plan is you receive an income increase during the 5 years? Also, what happens if you inherit money or assets while under a chapter 13 approved plan?
Thanks.

Like | Dislike | Share | Posted: Tue, 03/22/2011 - 08:15 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

If the vehicle has your name on it, then you will have to list it in your bankruptcy filing. You should contact your bankruptcy attorney and check out whether or not you would be able to keep the property out of the loop. Your bankruptcy filing will not affect your father's credit.

Hi sd,

Your uncle can file Chapter 7 and get rid of his creditors. However, back taxes do not get discharged in bankruptcy filing. He will have to pay off the back taxes to the IRS.

Like | Dislike | Share | Posted: Wed, 05/12/2010 - 23:24

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I recently filed chapter 13 and I will be making my last car payment next month. How will this impact my credit? Will it even show?

Like | Dislike | Share | Posted: Sun, 07/04/2010 - 04:47 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

You can surrender the car to the lender if you don't want to keep it. If you want to keep the car, then you'll get a repayment plan to pay your loan. It is the trustee and your lenders who will decide the amount that you need to pay.

Thanks

Like | Dislike | Share | Posted: Fri, 09/10/2010 - 23:23

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My wife does not work but she was able to save money base on allowance I gave her. Plus she got half of the (significant) gains when we sold our house years ago. Is her assets on the hook for computation of my monthly repayment plan if I file Chapter 13?

Like | Dislike | Share | Posted: Tue, 10/18/2011 - 10:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

we totaled our2002 van and it has a lien on it the insurance co has contacted us with the amount do we pay off the lien or are we allowed to purchase another vehicle with insurance check

Like | Dislike | Share | Posted: Wed, 12/16/2009 - 08:41 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If I had a short sale that went through a few months ago and now I have a HELOC for 60K that wasn't paid off by the first loan holder do I have to pay it back? The amount keeps going up and what options do I have? Bankruptcy versus a payment plan or an amount that we settle on that is less?

Jeremy
seney10@yahoo.com

Like | Dislike | Share | Posted: Thu, 06/24/2010 - 15:34 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If I had a short sale that went through a few months ago and now I have a HELOC for 60K that wasn't paid off by the first loan holder do I have to pay it back? The amount keeps going up and what options do I have? Bankruptcy versus a payment plan or an amount that we settle on that is less?

Jeremy
seney10@yahoo.com

Like | Dislike | Share | Posted: Thu, 06/24/2010 - 15:36 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We filed Chapter 13 in Oct of 09. and have been paying the trustee. We recently received the schedule of creditors as their time to file their claim has passed. A lot of my creditors did not file a claim surprisingly, does this mean my payment goes down? I am in CA.

Like | Dislike | Share | Posted: Sun, 05/16/2010 - 23:00

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am thinking of filing a ch13 asap due to a unpaid credit card judgement against me & future garnishments, i have talked to 4 different lawyers and gotten 4 different responses. One shut the door in my face, one made it sound like a fix all, one thinks ch 13s are horrible and the other made it sound ok!!Very confused My husband & I gross $9000 a month have $34000 in credit card debt a 32000 2nd a 2400001st house is valued at 270000per county assessment we are both employed have 2 kids and a car worth 10000 & we owe 10000...also current on our 1st mortgage...my main concern is not having my wages garnished because of a judgement yet it seems from reading the comments on this forum that ch 13 ties your hands?? I am afraid of a big ch 13 pymnt...what do you suggest?? :?

Like | Dislike | Share | Posted: Thu, 06/24/2010 - 16:28 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

if mortage is in chapter 13 after 3 yrs of plan will my mortage rate still be 740 a month after chapter 13

Like | Dislike | Share | Posted: Mon, 11/16/2009 - 16:20

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Just did a loan modificaton or loan restructure through a Non-profit organization called NACA. Anyone can go to the website Naca.com and get help. The help is free! It did take awhile to do the restructure of our mortgage, but with this place you don't need to be late, or in foreclosure to start a restructuring of your loan. What ever kind of situation you are in they can help. They are advocates for the consumer. They fight against banks who are predatory lenders, subprime, ect... The good news is is that my loan went from $1853.00 a month to 1422.19 a month, mine isn't the best they've done but its good enough for me! They can usually cut your payment down 500.00 to 1000.00 a month. I also had my interest rate reduced from 6.1 percent to 2.88 percent fixed for the remaining life of the loan, 25 years. There was no cost for me to this, no closing, no nothing! The founder of the organization is Bruce Marks, google him and you will find out this is not to good to be true!!!! He wants to save americans their homes and make their mortgages affordable. He calls himself a bank terriorst. He believes that most banks in recent years set mortgages up for failure on purpose, and now thousands of people have lost their homes and bank exec.s got richer. Just check out NACA website you will be glad you did. There is hope.

Like | Dislike | Share | Posted: Wed, 01/27/2010 - 14:36 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi tmichaels!

Welcome to forums!

It won't be right to say that Chapter 7 will help you in wiping out all your dues. It will help you in starting afresh. You'll be able to get your unsecured debts discharged. As far as the mortgage and the car loan is concerned, if you reaffirm them, then you would be personally liable for the payments.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 08/12/2010 - 00:44

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

how do chapter 7 and 11 and 13 creditors get paid?

Like | Dislike | Share | Posted: Thu, 04/29/2010 - 06:40 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

how do chapter 7 and 11 and 13 creditors get paid?

Like | Dislike | Share | Posted: Thu, 04/29/2010 - 06:40 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Salty!

Welcome to forums!

In case of Chapter 13, your creditors will give you a payment plan to pay off the dues. This payment plan will depend upon your present financial situation. This will help you in paying off the dues and get rid of the debts.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 06/07/2010 - 22:43

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Golfman,

Whether or not you would be able to keep a credit card, after [url=http://www.mortgagefit.com/know-how/filebankruptcy.html]filing bankruptcy[/url], will depend upon the credit card company. If you are discharging a credit card, then they will cancel the card unless you reaffirm your debt.

Like | Dislike | Share | Posted: Wed, 09/01/2010 - 00:47

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Glad,

Chapter 13 bankruptcy filing will remain on your credit report for the next 7 years from the date it was discharged.

To wpatters,

If you want to file bankruptcy, then you should do it first and get a discharge and then apply for a travel trailer. Buying property just before bankruptcy will affect your filing.

Thanks

Like | Dislike | Share | Posted: Mon, 09/20/2010 - 01:02

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi diver,

Your query has been replied to in the given page:
http://www.mortgagefit.com/know-how/about50864.html

Take a look at it. I hope it will help you.

Thanks

Like | Dislike | Share | Posted: Thu, 04/14/2011 - 00:04

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello Jessica,

I'm in Chapter 13 but the case has not been discharged. I lost my job after filing. I'm collecting unemployment, however, I'm having difficulty making the monthly payments to the trustee. I'm considering leasing out my primary home (which is attached to the filing) in order to cover a portion of monthly trustee payment. Is this allowed under the current US Bankruptcy Code? Many thanks for your input.

Like | Dislike | Share | Posted: Sun, 10/24/2010 - 23:22 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Good Morning, I just received a loan modificaiton I have to FedEx it back. Its great. all my arrears and taxes are in this new payment plan along with my taxes being added in to the new plan as well. I dont want to include this in my BK, but im not sure. Im concerned about the judge arguing that i should live in a more affordable home, so that i can pay my creditors at a 100 percent for the next 60 months. If this happens, then i cannot keep my home. Do I have a Defense? What could be my arguement? Im paying 3800 right now on the new plan. I dont know what the median rent is for a family of 5 here in southern california but im sure im over. Ive been here for 16 years, and with my bad credit, who would rent to me!!! Plus as a renter i wouldnt have a tax write off anymore. But would these have any merit in court? Will i have a chance of keeping my home????

Like | Dislike | Share | Posted: Tue, 12/07/2010 - 09:00 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi deneice,

If you have filed bankruptcy, then the court will issue an automatic stay on all your lenders. Thus, your lenders will not be able to come after you or sue you for the debts till the bankruptcy is not discharged.

Hi Lawanna,

If you file Chapter 13, you will get a payment plan to pay your dues depending upon your financial situation. The creditor will give you an affordable payment plan in order to recover his dues.

Like | Dislike | Share | Posted: Mon, 06/07/2010 - 02:19

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jahtj,

You will be able to retain all your assets when you file Chapter 13. If you go for the Chapter 13 bankruptcy option, then you'll be able to reorganize your debts and you'll get a payment plan from the lenders/creditors. You'll have to make the payments as per the plan and save your properties.

Like | Dislike | Share | Posted: Thu, 09/23/2010 - 00:32

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi p.o.,

As far as I know, you'll be able to convert your Chapter 13 bankruptcy to Chapter 7. However, you need to qualify the means test for the same.

Thanks

Like | Dislike | Share | Posted: Thu, 09/30/2010 - 23:29

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Rob!

Welcome to forums!

If you are filing Chapter 13 alone, then your wife's savings won't be calculated when the creditors and bankruptcy trustee make a repayment plan for you. Only your income and savings will be taken into consideration.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Tue, 10/18/2011 - 23:19

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Linda,

Though you file Chapter 13, you'll be liable for paying off the taxes in full. The taxes won't get discharged in your bankruptcy filing.

To jerry,

If you include the mortgage in your bankruptcy filing, then you'll receive a payment plan and you'll have to pay off the dues as per that payment plan. You will be liable for paying the fees of the trustee even.

Like | Dislike | Share | Posted: Mon, 01/31/2011 - 01:56

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