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
You can file a Chapter 13 case if you are an “individual,” have regular income,” and don’t owe too much.
A judgment lien effectively converts a debt that was secured by nothing into one secured by your home.
If a creditor’s proof of claim is too large, you may need to object to it to avoid dismissal of your Chapter 13 case.
If you object to a creditor’s proof of claim in your Chapter 13 case, and prevail in that dispute, you pay nothing on that debt.
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.
When a creditor may not have a valid lien, Chapter 13 gives you a good way to defeat that disputed lien and the claim against your property.
For a debt to be secured, the creditor has to go through the right legal steps. Otherwise you don’t have to pay the debt.
A secured debt effectively turns into an unsecured debt if you surrender the collateral, which may make sense to do more than you think.
A secured debt can be handled like an unsecured debt if you surrender the collateral, “avoid” a judgment lien, or just keep the collateral.
This 4th of July make your move towards financial freedom. Get informed. You’ll feel tons better once you know your options.
In your goal of getting a fresh financial start, your most important tool is the “discharge”–the permanent legal elimination of your debts.
As of April 1, 2016 you can have a little more debt and still qualify for a Chapter 13 “adjustment of debts”
Which of the two consumer bankruptcy options is better for you if you have lots of unsecured debts depends on the kind of unsecured debts.
How does bankruptcy treat something you bought–furniture, an appliance, or some electronics–when that thing is collateral on a debt?
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