How Chapter 13 helps you keep personal property collateral on a debt (such as furniture bought on credit) for less money through cramdown.
Chapter 13 vehicle loan cramdown solves a number of serious practical problems that even Chapter 7 “straight bankruptcy” can’t.
The laws about the treatment of different types of creditors can often be used in your favor to pay who you want or need to pay.
Chapter 13 revolves around your payment plan, which you propose based on your budget, and possibly negotiate with creditors and the trustee.
Chapter 13 is very different from Chapter 7 “straight bankruptcy.” It buys you time to deal effectively with your special debts.
You can file a Chapter 13 case if you are an “individual,” have regular income,” and don’t owe too much.
If your vehicle is worth less than you owe on it, under Chapter 7 you can keep it by “redeeming” it–paying its present value in full.
If you’re buying a vehicle, sometimes getting out of the contract is your best option. Chapter 7 lets you do that, owing nothing.
In a Chapter 7 case you “reaffirm” your vehicle loan if you want to keep your vehicle. This means you keep paying it.
With smart timing you can take advantage of the unusual way that your “income” is calculated for the Chapter 7 means test.
Determining your correct “applicable state” can make the difference between passing and failing the means test.
We show by example how the means test works, when a person qualifies for a Chapter 7 case simply by income.
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