Barby Berlin asked:




Are you considering filing for bankruptcy? In these tough economic times, some people may have no other options, or even if they do, they may feel the detriment caused to their credit score is worth it. Bankruptcy law, chapter 7 or 13, are the two options available to individuals who need the financial do-over that bankruptcy can offer.

Bankruptcy law, chapter 7 or chapter 13, can indeed provide relief from bill collectors and help some folks who find themselves in a financial bind whereby they are unable to meet their monthly obligations. Before you decide to file bankruptcy, however, you would be well advised to look into all the finer points of the laws. Although bankruptcy court is a federal court, there are differences in what’s allowable from state to state. The rules differ significantly, and where you live can make a big difference in how you approach your financial decisions.

You should also not expect to be in for an easy ride; bankruptcy law chapter 7 is generally available for only those who make less than a certain amount of money as compared to others in their state; chapter 13 does not “erase” debt, but instead, reorganizes it, so most people who file chapter 13 still have to repay most or at least part of their debt, but the bankruptcy remains on the credit history. In addition, no matter which type of bankruptcy for which you qualify, you will be expected to provide several years worth of financial records, and the court will look deeply at your personal financial information.

There are lots of books, Internet sites, credit counseling groups, and attorneys who can help you look into the matter further. Be sure to do your homework.

http://rexkaufman6721.tripod.com/chapter13bankruptcynow12/index.blog/1903264/using-chapter-thirteen-bankruptcy-to-stop-foreclosure/

Simon Volkov asked:




Chapter 13 payments are arranged through the reorganization of debt at the time when bankruptcy is filed. The debtor is required to make regular payments directly to an assigned Trustee who oversees the case. When Chapter 13 payments are received, the Trustee disperses payments to creditors until accounts are paid in full.

In some instances, Chapter 13 payments can be made through payroll deductions if approved by the bankruptcy court. Upon acceptance of the bankruptcy repayment plan, chapter 13 payments are setup to repay creditors and tax liens, if applicable.

If the debtor owns a home, filing Chapter 13 bankruptcy can halt the foreclosure process. However, if the debtor fails out of bankruptcy, the lender has the authority to initiate foreclosure proceedings. Additionally, the court may require the debtor to liquidate their assets under Chapter 7 Bankruptcy Code. If this occurs, the debtor must relinquish their property to a Trustee who will sell the assets and repay creditors.

Chapter 13 bankruptcy is available to all U.S. citizens. This chapter allows individuals to reorganize their debt and make payments over an extended period of time. However, certain eligibility requirements must be met and include outstanding unsecured debts must be less than $307,675 and secured debts must be less than $922,975. Additionally, the debtor is required to undergo credit counseling within 180 days prior to filing.

When an individual files Chapter 13 bankruptcy they must provide a certificate of credit counseling, proposed repayment plan, proof of income, detailed list of expenses, and a recent year tax return.

Collection actions against the debtor cease when the debtor files Chapter 13. However, it does not dismiss outstanding balances. As long as payments are made to the Trustee and disbursed in a timely fashion, no further action will be taken against the debtor. If the debtor is unable to make payments according to their chapter 13 agreement, the creditors can move forward with collection actions.

If circumstances arise that cause the debtor to become unable to make chapter 13 payments, the Trustee must immediately be contacted. If the financial setback is temporary, the Trustee may agree to reducing payment amounts or extending the repayment period.

In cases where financial setbacks are long-term, the court may modify chapter 13 payments, discharge the debts on the basis of hardship, convert to Chapter 7 liquidation, dismiss the Chapter 13 case, or temporarily suspend payments.

Chapter 13 bankruptcy provides individuals with the opportunity to retain their property and make a fresh start. When creating the repayment plan it’s crucial to arrange chapter 13 payments that are reasonable so the debtor can consistently make payments in a timely fashion. Otherwise the effort will be fruitless and cause the debtor to fail out of bankruptcy and lose their home, automobile and other valuable assets.

http://rexkaufman6721.tripod.com/chapter13bankruptcynow12/index.blog/1903286/the-rules-of-chapter-13-bankruptcy/

Steve Bingman asked:




It is not uncommon for a married couple to consider filing bankruptcy, but question whether or not both the Husband and Wife have to file. It may be a situation where one (ex. the Husband) has debts which must be dealt with while the other (ex. the Wife) is financially sound. So, is there such a thing as “Chapter 13 Husband Bankruptcy”? The answer is yes!

While it is really not called “Chapter 13 Husband Bankruptcy”, it is possible for a Husband to file bankruptcy under Chapter 13 by himself. Bankruptcy law does not require that both a Husband and Wife file jointly.

Even though only the Husband is filing bankruptcy, the income and expenses of the Wife are required when the Husband files, so that the bankruptcy court, the trustee and creditors can evaluate the household’s financial position to determine if the Husband qualifies for bankruptcy.

The Wife will need to disclose:

1. All of her creditors as well as the amount that she owes each creditor and the basis for which she owes each creditor.

2. The source and amount of her income as well as how often she is paid.

3. All of her property.

4. All of her monthly expenses such as food, housing, utilities, taxes, transportation, medical, medicine, business, etc.

Several aspects of a Chapter 13 bankruptcy are affected by a person’s household financial position including, but not limited to, the length of time for the payment plan and the eligibility of the debtor. For an accurate picture, the Wife’s information has to be included. However, the Wife is not a party to the Chapter 13 bankruptcy and is not bound by the bankruptcy.

It should be noted that if the Wife’s financial status changes during the bankruptcy, the change needs to be reported to the trustee as it can change or affect the Husband’s bankruptcy.

This is general information. If you need specific information or have any questions of any nature whatsoever, talk with a lawyer licensed in your state.

This article may be republished, but the wording must not be changed and the author links must remain active.

http://rexkaufman6721.webs.com/apps/blog/show/867595-using-chapter-thirteen-bankruptcy-to-stop-foreclosure

mcc1404 asked:


5 years ago I went thru a very expensive and nasty separation and divorce, at the time I had a thriving business and a good income. Now, I only make a fraction of what I used to. I ended up losing everything and was forced into Chapter 13. Then, I was pushed into signing a family support agreement that I could not afford.Everyone keeps basing everything on my past income. My family support is $2,700.00 monthly and my bankruptcy payment is currently at $500.00 monthly and is getting ready to increase to $1,430.00 monthly next month. I have not been able to pay Federal Income tax for the last 3 years even though I have filed the returns. I am really struggling to keep up the payments at even the $500.00 amount to the Bankruptcy court, let alone have it go to $1,430.00 a month. I hardly have anything left and can barely make ends meet. What can I do to get some help? I currently have a bankruptcy attorney, but with the economy, my wages have continued to go down. I just can’t afford to pay out over $4,100.00 monthly BEFORE I pay any of my other bills for insurance, housing, food, ETC. I am trying to do the right thing and take care of my family obligations but it is getting to be too much on me and I can’t keep up this pace, just not enough money to go around. Any good advice out there?

pg asked:


My husband and I filed Chapter 13 in 2006. Prior to that the attorney asked us to check if we would have a tax refund coming.
My husband found out that we would have a large tax refund coming. The attorney told us to adjust our tax allowances so that we would not have any refund. The reason was that any refund would go to the bankruptcy court. Our bankruptcy payments are based on the higher allowances. I was doing our federal tax filing last night when I realized that we now owe the government over $3000 in taxes because not enough money was taken out of my husband’s paychecks. We are barely making ends meet now. There is no way that we’ll be able to afford another $400 a month taken out for taxes. They are to base our payments with disposible income. I believe that paying our taxes is not considered disposible. Should I contact my attorney and ask for the payments to be readjusted? We are paying over $350 a week now. Last year, we paid over $18000 to the court.

meme asked:


my mother-in-law filed chapter 13 bankruptcy so they draft money out of her pay check every week to pay for it.
I was wondering if she could get in trouble for renting rooms out of her home and not reporting that income to the bankruptcy court.
She is getting around $400 a month her mortgage is worked into the chapter 13 and hemortgagege is only $300 and something and thaincludesds property tax. She also has her Car worked in and a few other bills. She has Harleyly but I don’t thinthat’sts in the Ch.13.
So is she supposed to be reporting this?
Oh and hemortgagege is a USDA loan so I don’t think she is supposed to rent to anyone anyway?
Does anyone know?
If this is fraud than whom do i contact to let them know?
I am working on my bachelors in criminal justice, (i have mo clue about the laws on bankruptcy yet) and I feel uncomfortable knowing this information and not doing anything about it.
I am sorry if that makes me sound could hearted, but I am working to hard at 27 and my husband is 28 to give our three children who will soon be 8, 10 and 12 a good life and we will not be brought down with her.

Jon M asked:


I have had great financial difficulty this past year, and have fallen behind on many of my obligations, due to drastic income loss. I was behind on my 2nd mortgage, and was trying to work out a loan modification with them, when I called today to find out the status, they informed me that my loan is now closed and charged off. I think I understand what that means, that is a banking term and I am still liable for that debt. My question is; is this debt still a lien on my home, and if is not, can I file it in my chapter 7 bankruptcy? The bank told me that they would not forclose on the home. I have tried to research this, but not finding any luck with the questions I have. I spoke with my attorney, and she said that I would have to file a Chapter 13, or else the 2nd mortgage would forclose…Does any one have any information, or gone through a simular situation?
FYI, my home is not worth as much as I owe, so the 2nd wouldnt get their $$, even if they forclosed.
Thank you David. Now, do you know if the bankruptcy court will see me as behind on my second? The bank is now not concerned will collecting the late payments, but wants to set up a payment plan with no interest. Can I do that and not include this loan in the bankruptcy? I know I can reaffirm it, but with this now a charge off account, I am not sure how that works.

kim3moe asked:


I am getting ready to file chapter 13 bankruptcy. My attorney told me to stop paying the credit cards because they were being added to the bankruptcy. Now, a court processor has been punding on my door everyday for a week, 2 or 3 times a day. My attorney said it will take a couple of weeks to get my paperwork in order. I need to know if someone answers the door when I am not home, can he serve them with my papers. This processor has been here on Saturday and after 5 pm. Do they not get paid unless they serve me? He is so persistent,