Photo by Kelly Sikkema on Unsplash The new coronavirus law temporarily allows amend Chapter 13 plans to extend to a 7-year period instead of the current 5-year maximum. Last month we described the changes to bankruptcy law made by the coronavirus CARES Act enacted on March 27, 2020. One of those changes is the ability to extend the length … Read More
One of the smartest ways to pay your priority debts—including recent income taxes or child/spousal support arrearage—is through Chapter 13. Priority Debts under No-Asset and Asset Chapter 7 Our last two blog posts described how Chapter 7 can sometimes be a sensible way of dealing with priority debts. (Those are ones you can’t “discharge”—legally write off–the most common being … Read More
To finish your case successfully, sometimes beyond paying your Chapter 13 plan you may need to pay a debt directly and do some other things. The bankruptcy court’s approval of your payment plan (at the Confirmation Hearing) happens about 2-to-4 months after filing your case. At that point your Chapter 13 case is fully on its way. You likely … Read More
Although a Chapter 13 case lasts so much longer than a Chapter 7 one, it often has huge advantages. But you have to complete it successfully. Once your Chapter 13 payment plan gets approved at the “confirmation hearing,” your case is on its way. Now you have to comply with that plan to get the advantages that Chapter … Read More
At the Confirmation Hearing (which you almost never need to attend) the bankruptcy judge “confirms” (approves) your Chapter 13 payment plan. The Chapter 13 Plan As we said last week about the Meeting of Creditors, a Chapter 13 case is all about “the plan.” The plan is your financial road map during the 3 to 5 years that you … Read More
At the Chapter 13 Meeting of Creditors you, your lawyer, & the trustee discuss your payment plan and any creditor & trustee questions. The Chapter 13 Payment Plan The core of your Chapter 13 “adjustment of debts” case is the payment plan. The plan is a detailed outline of who you will pay, how much, and when. A Chapter … Read More
Under Chapter 13, unlike Chapter 7, you pay your general unsecured debts as much as you can for 3 to 5 years, although often not very much. Our last blog post was about how Chapter 7 “straight bankruptcy” deals with “general unsecured debts.” Mostly, they are discharged—legally, permanently written off. There are some exceptions. At the end of the … Read More
Do you have a judgment or HOA lien on your home, or are behind on child or spousal support? Chapter 13 may be much better than Chapter 7. You may need the extra help of Chapter 13 if you have any of the following liens against your home: Judgment lien Homeowner association lien Unpaid child or spousal support Or … Read More
Do you have a 2nd or 3rd mortgage, owe property taxes, or have an income tax lien on your home? Chapter 13 may be much better than Chapter 7. The last two blog posts were about situations in which a homeowner is current on the mortgage but has other debts on the home. We showed how Chapter 7 “straight … Read More
Smart timing of your Chapter 13 “adjustment of debts” case can sometimes allow you to finish your payment plan faster and save lots of money. Chapter 7 vs. Chapter 13 Two days ago we showed the importance of timing in the filing of a Chapter 7 case. The timing can affect whether you can qualify to be in a … Read More
What does the completion of a successful 3-to-year Chapter 13 case look like?What happens to your assets and debts?
Finishing a Chapter 13 case successfully is a big deal. It is rewarding financially and emotionally. Here’s how it happens.
The Chapter 13 trustee is an important player in your “adjustment of debts” case so it helps to know how to deal with him or her.
If you own a home with a qualifying 2nd or 3rd mortgage, one of the best reasons to file a Chapter 13 case is to “strip” off that mortgage.
It’s good to know that your Chapter 13 payment plan can be changed during the 3 to 5 years the case lasts to address changing circumstances.