You can lower your monthly payments, the interest rate, and amount you pay on furniture purchases, secured credit cards, and pawn loans. Our last 4 blog posts have been about Chapter 13 cramdown of vehicle loans. For most people filing a consumer bankruptcy case, their vehicle loan is their largest and most important personal property debt. But cramdown can also … Read More
A Handy Summary to Chapter 7 vs. 13 for Your Secured Debts
Here is a handy summary of when to reaffirm your secured debt (like a vehicle loan) under Chapter 7 vs. cramming it down under Chapter 13. The last 4 weeks of blog posts have been about options for keeping collateral through Chapter 7 and Chapter 13. Mostly these options have involved reaffirming a secured debt in Chapter 7 or … Read More
No Timing Conditions for Cramdown on Non-Purchase Collateral
No need to comply with the timing conditions when doing a cramdown of a secured debt if the collateral was not purchased with the debt. The Cramdown Advantage Last week we got into Chapter 13 cramdown of vehicle loans and furniture loans. Cramdown can be an excellent way to keep personal property that’s securing a loan. It allows you … Read More
Does Your Creditor Has a Valid Security Interest?
Whether your creditor has a security interest determines whether it has rights against your vehicle or other collateral. Find out for sure. Reaffirmation vs. Cramdown The last four blog posts have compared Chapter 7 reaffirmation with Chapter 13 cramdown of a secured debt. With reaffirmation you keep the vehicle or other collateral but continue to owe the debt. Usually … Read More
Examples of When to Reaffirm a Debt, When to Use Chapter 13
Here are examples of when to reaffirm a secured debt (like a vehicle loan) in a Chapter 7 case or instead use a Chapter 13 case. The last blog post was about when to reaffirm a secured debt under Chapter 7 and when to handle that under Chapter 13 instead. This kind of comparison of options can get a … Read More
Furniture Loan: Reaffirm or Cramdown?
Here’s an example of when it’s better to reaffirm or cramdown a furniture/appliance loan, to use a Chapter 7 case or a Chapter 13 one. Last time we showed how cramdown on a vehicle loan can reduce the payments and the total amount you pay. The amount you save monthly and in total may be enough to justify filing … Read More
Can I Rescind a Reaffirmation Agreement?
Yes, you can rescind, or cancel, a reaffirmation agreement. But the deadline to do so is very quick. Know when it is so you can act timely. Reaffirmation Agreements Our last four blog posts have been about reaffirmation agreements in a “straight bankruptcy” Chapter 7 case. In particular the first of these introduced these special agreements and the second … Read More
Reaffirming a Secured Debt in Chapter 7
You are allowed to exclude a secured debt—to keep your vehicle or furniture, for example—by reaffirming and not discharging the debt. Last time we got into debts that you might voluntarily pay after a Chapter 7 case out of personal obligation. Today we cover debts voluntarily paid but for the purpose of keeping the collateral that’s securing the debt. … Read More
The Timing of a Personal Property Cramdown
Chapter 13 cramdown doesn’t just work for vehicle loans. You can also cram down debt for the purchase of “any other thing of value.”
Chapter 13 Cramdown on Personal Property Debts
How Chapter 13 helps you keep personal property collateral on a debt (such as furniture bought on credit) for less money through cramdown.
Distinguishing between a True Lease and a Secured Purchase
To determine whether a “lease” is actually a disguised secured purchase the bankruptcy court looks at the deal’s economic substance.
Leases Treated as Secured Purchases in Bankruptcy
A “lease” of furniture or other consumer goods may actually be a disguised purchase. If so, through “cramdown” you can pay much less on it.
Statutory Liens on Your Home
Statutory liens on your home cannot be gotten rid of in bankruptcy like judgment liens often can. So it’s important to know what they are.
A Judgment Lien is Dangerous
A judgment lien effectively converts a debt that was secured by nothing into one secured by your home.
The Benefit of Surrendering Collateral in Chapter 13
If you are concerned that in a Chapter 13 case a debt resulting from surrendered collateral will cost you more, often it won’t.