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/

Joseph Seagle asked:




In Bankruptcy cases, specifically Chapter 11 and Chapter 13, lien stripping is an effective tool in reducing the payments made to creditors. In Chapter 13, the debtors reorganize their debts into a repayment plan whereas Chapter 11 is for businesses and individuals whose debts exceed the limits in Chapter 13.

Lienstripping is referred to as the debtors‘ ability to reduce an undersecured creditor‘s claim by valuation of the underlying collateral. This is also known as bifurcation where the undersecured creditor‘s claim is divided into secured portion and unsecured portion. The unsecured portion of the lien is stripped away from the collateral and becomes an unsecured claim. For example, if a debtor purchased a commercial building with a mortgage of $500,000 and the current value of the building is $300,000. The creditor‘s lien is undersecured and can be bifurcated into $300,000 secured claim and a $200,000 unsecured claim. The debtor is only required to pay back $300,000 over the life of the loan and the remaining $200,000 can by discharged at the end of a successful plan. Under nonbankruptcy laws, the debtor is required to pay the entire amount since lienstripping is unique to bankruptcy cases. Lien stripping is not available in Chapter 7 cases which are used in discharging unsecured debts because liens ride through Chapter 7 cases untouched.

However, there are limitations as to what the debtor can do in valuing claims on the primary residence and vehicles financed within 910 days. Congress in its wisdom has prohibited individuals from modifying loans on their primary residence. If the debtors have one mortgage on their home, they cannot reduce the loan to the value of the house. However, the debtor is allowed to strip away a second mortgage that is not secured by the value of the house. For example, if the debtor has a first mortgage of $300,000 and a second mortgage of $100,000 and the house has a value of $250,000, then the debtor is allowed to strip away the second mortgage. In Chapter 13 cases, Congress applied another limitation to stripping liens on vehicles financed within 910 days of filing bankruptcy. A vehicle that has been financed longer than 910 days can have its lien reduced to the value of the collateral which allows the debtor to make reduced payments based on the current value of the vehicle and not the outstanding balance of the loan. The interest rate can also be reduced to the current market rate and the debtor is not required to pay the contract rate.

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

J. Everett Myers asked:




Chapter 13 bankruptcy is a debt repayment plan for individuals. It protects your house from foreclosure while allowing you to catch up on over-due mortgage payments. It can also be a viable option for those who may not qualify for Chapter 7.

Chapter 13 is different than Chapter 7, (which may allow you to completely eliminate your consumer debts). Chapter 13 may better suit people who do not qualify for Chapter 7 under the new rules, or who wish to preserve their credit rating by restructuring their debts. Filing a case reorganizes that debt into a single monthly payment. And that payment is then stretched out over 36 to 60 months.

Some qualifications: Chapter 13 is formulated for people who have a regular source of income, and a desire to pay his or her debts, but are currently unable to do so. A court supervises the adjustment procedure. And all unsecured debts must total less than $269,250. All secured debts must total less than $807,750.

All plans which must be approved by the court and provide payment details. Assuming those plans are approved, fixed payment amounts are then sent to the trustee on a regular basis (typically biweekly or monthly). And the trustee distributes those funds to the creditors according to the terms of the plan (often for less than the full payment on their claims). Planning with a certified tax attorney or accountant is advised.

To file for bankruptcy, the debtor files a bankruptcy petition (which is closely related to the Chapter 7 petition), including a thorough financial statement and a complete list of assets and liabilities.

Remember that Chapter 13 just one of several options for people who are trying to save their homes from foreclosure. If you are worried about losing your home in foreclosure or of having your car repossessed, Chapter 13 is an option that can help.

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

Jon Arnold asked:




Bankruptcy is seen differently by different people, especially depending on their situation. Some may see it as a quick fix to a long building problem while others may not see it as an option at all due to the costs of the attorney. Everyone should understand exactly what bankruptcy is, and if it is a good idea for them in their situation.

In reality, bankruptcy should only be seen as a very last resort, and sometimes it’s hard to tell if you’ve really hit rock bottom financially. Take, for instance, someone that has $100,000 in debt that they cannot hope to pay off any time soon. However, once they bring their case to court to file for bankruptcy, the fact that they own a second home comes to light. They really didn’t consider it because it’s an older home that’s not in great shape that they are letting relatives live in for free. Suddenly their asset to debt ratio looks completely different than what they had assumed, and the bankruptcy is either declined or pushed through on terms that are not at all good for the one claiming.

This is but one example of the many situations where a qualified attorney would’ve actually saved you quite a bit of money simply by looking at things from an angle that you had not considered because you do not deal with bankruptcies all day every day. There are also many situations where, no matter how hard he looked, the layman could not possibly see coming because they arise due to laws and regulations that most simply do not know, nor have the training to understand them even if they were able to look them up. Bankruptcy law was complicated to begin with, but with the legislation passed within recent years, there are now multiple levels of confusing changes that must be navigated. You probably do not stand where you think you do when it comes to your financial situation as seen by the law.

Another issue people face is the type of bankruptcy they plan to file: Chapter 7 or Chapter 13. Put simply, in a Chapter 7, you discharge everything because you do not have the means to pay any or all of it within a certain time frame, and in a Chapter 13, only some of the debt may be discharged, if any, and what is left is generally reduced to an amount that the person filing is able to pay. And even at that, there are certain types of debt that cannot be eliminated through any type of bankruptcy, so if your debt is comprised in large part by these types of debt, a filing is not going to help you at all.

You can file whichever you like, but it is not the one filing who decides which type of bankruptcy is passed. The court determines how much the filer is able to repay, and whether the case constitutes as a Chapter 7 or Chapter 13, regardless of which is initially filed. A qualified bankruptcy attorney knows how to present the case in a light that is much more likely to get the type of bankruptcy passed that you need.

http://www.zimbio.com/chapter13bankruptcynow35/articles/3/Chapter+Thirteen+Bankrupcy+Rules

meow0724 asked:


My husband and I are in serious debt, and we are talking to an attorney to look at bankruptcy. We don’t qualify for chapter 7 so 13 is our only option. I am worried that the repayment plan, which will last for 5 years, will not allow us to save any money. Which will intern not really make our situation any better, just ruin our credit in the process.

Has anyone had any experience with this? Is the plan fair?

poo asked:


after 20 years married I am divorced in our time of being separated we tried to reconcile once in this time i got a van for his bussiness in my name because of non payment (I was told after leaving he would still make payments the bill was still going to our former address which I no longer lived so was not aware of the non payment) it was repoed now my wages are being garnished because of the divorced agreement no amendment can be done and $351 are being garnished from my check. any advice would be appriciated.

mortgagesaver01 asked:


Hello All

I’m asking this question because I work with a lot of Bankruptcy Attorneys and customer trying to purchase homes after a bankruptcy.

In the past I would recommend Capital One, Providian and their was one other but I believe that Providian is no longer and many of the other cards that are out there have customers bound with fees and no available credit. I.E. your credit limit is $400 BUT your fees charged by the issuing company are $399 so the customer has to pay it down before they can start using it. The problem with this type of care it IMMEDIATELY puts the consumer back in a bad situation since they are soo close to the limit if they are hit with 1 little fee then BAM over limit and late and on and on the other problem is since they are over 50% of the balance on the card it really doesn’t help the credit score much.

maria b asked:


how long must i wait

Rae asked:


I filed Bankruptcy about 5 years ago and i think it was a Chapter 7, am i able to file Chapter 13 now?

wildkat4510 asked:


Anyone know if I can file for chapter 7 agian, or will have have to wait for 8 years. I was told that I could since I filed 5 years before the new law cam into effect.
Or will I have to file chapter 13??