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.
The Bankruptcy Code explicitly says that, at the request of the person in a Chapter 13 case, the bankruptcy “court shall dismiss” the case.
You can file a Chapter 13 case if you are an “individual,” have regular income,” and don’t owe too much.
If a creditor doesn’t file a timely proof of claim on a debt in your Chapter 13 case, you pay nothing on that debt.
Chapter 13 payment plans usually have you pay something to all of your creditors. But not necessarily. Certain creditors may get nothing.
Often creditors’ proofs of claim do not affect the amount you have to pay in a Chapter 13 case. But sometimes they make a huge difference.
File your Chapter 13 “adjustment of debts” case at the right time to include all possible tax debts. Then budget right to prevent new ones.
There are various ways of dealing with debts that arise during the course of your Chapter 13 “adjustment of debts” case.
When a creditor fails to enforce its lien in a Chapter 7 case, you are left exposed. Not so under Chapter 13.
To the extent you do not pay off your debts during a Chapter 13 payment plan, the remaining balance is usually legally written off forever.
If your second (or third) mortgage is not backed by any equity in your home, you can “strip” that mortgage off your home’s title.