Category: Chapter 13 Bankruptcy
Can I Eliminate a Second or Third Mortgage by Filing Bankruptcy?
If you are like many people, your home is not worth what it was a few years ago. With the downturn of the economy, the value of your house has decreased. Suddenly, you are “upside down” on your home and the sales price is not enough to pay off the first, second and sometimes third mortgage on your home. Bankruptcy may help you get rid of the second or third mortgage.
Can I Buy a Car While I'm in a Chapter 13 Bankruptcy?
Due to unforeseen circumstances, sometimes a person in a Chapter 13 bankruptcy will need to take out a new loan to get a car. This can happen if, for example, the car that you were driving when you filed the bankruptcy is in an accident or breaks down beyond repair. You can buy a car … Read more
Why Would the Trustee Increase My Chapter 13 Payments?
Your payments are usually increased when you have failed to make payments to the Trustee, the mortgage company increases your house payments due to a change in your interest rate or escrow and/or you have additional claims filed in your bankruptcy. Additional claims may be for taxes you have failed to pay to the city, county, state or Internal Revenue Service after filing your bankruptcy.
What is the General Timeline for a Chapter 13 Bankruptcy?
This is a general and approximate timeline. Each and every case will be different depending upon your individual situation. Some cases may take less time and others may take more time. To get a more definitive timeline, review the contract you sign with an attorney at Duncan Law at the time of your free initial consultation.
What is a Dismissal in Bankruptcy?
The court may dismiss your Chapter 13 bankruptcy if you fail to make payments to the Trustee or if your debts exceed your ability to pay. If your bankruptcy is dismissed by the court you will be responsible for all your debts and the creditors may proceed with collection actions against you as well as proceed with foreclosure and/or repossession.
What If I Get Behind On My Chapter 13 Bankruptcy Payments?
Each month the Trustee receives a payment from you, he will distribute payments to your creditors based on a priority as established by the Chapter 13 plan. If you do not make a payment to the Trustee, he will not distribute payments to your creditors.
Will Filing Chapter 13 Bankruptcy Reduce My Car Payments?
If you purchased your car more than 910 days (2 ½ years) prior to the date you filed bankruptcy, you may be able to reduce that amount owed on the car to the value of the car based on National Automobile Dealers Association (NADA), plus a portion of the amount owed greater than the value. This is known as a cramdown. Use this time duration calculator to see if you have had your vehicle more than 910 days.
What If I Accumulate New Debt in Bankruptcy?
Most personal property such as cash, bank accounts, furniture, clothes, and retirement plans can be protected by exemptions allowed by each state. Most people that file bankruptcy are allowed to keep most, if not all, of their personal property.
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