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/

Billings Farnsworth asked:




Every 13 seconds, a house goes into foreclosure according to the Center for Responsible Lending. There are 6,600 new foreclosures a day and the numbers continue to get worse.

Many homeowners who are threatened with foreclosure and see no other way out except to file bankruptcy need to be aware of filing Chapter 13 as the last resort. Filing Chapter 13, another form of personal bankruptcy is designed to stop foreclosure and repossession, giving the homeowner a chance to catch up on the late mortgage payments.

Once the homeowner is approved, a new payment program is set up that covers a three to five year period. If all payments are made according to schedule by the end of the Chapter 13 repayment plan, the bankruptcy court may discharge or eliminate the balance of unsecured debts. (Unsecured debts are not tied to property such as a car or home but include credit card debt, medical bills, payday loans, utility bills, some personal loans, parking tickets.)

The main criterion for qualification is to have a steady income. If the homeowner is able to make steady payments on the repayment program, this is a way to retain the home. The best way to determine one’s qualification for filing Chapter 13 is to consult with a bankruptcy attorney, an expert who can advise and guide the homeowner through the correct filing procedures.

Don’t let the threat of foreclosure close the door on your ability to make rational decisions. Call a bankruptcy attorney to discuss your case; you won’t regret the decision to do so.

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

Roilee Mandeville asked:




A cheap Chapter 13 bankruptcy attorney may be able to provide you with the help you need to get your finances under control. The economy has been tough on everyone. Some people have gotten into money troubles and the only answer seems to be bankruptcy. Chapter 13 bankruptcy is more of a repayment option than a clean sweep.

Understanding Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a chance for you to adjust your debts. You can keep your property and pay off what you owe over a set period of time — usually three to five years. It is set up for those filers with regular income that have the ability to make payments. You and your Chapter 13 attorney will work together to come up with a repayment plan. The repayment may cover all of your debts or only part of your debts. The repayment period cannot be longer than five years. During the Chapter 13 bankruptcy repayment period creditors cannot start or continue any collection efforts. Foreclosure proceedings can be stopped by filing for Chapter 13 bankruptcy. The monthly payments for the mortgage must still be paid on time during the Chapter 13 bankruptcy plan. The process may cure any delinquent payments on the mortgage. Chapter 13 acts as a consolidation loan for debtors. It takes all of the different debts and puts them into a payment plan. A trustee of the court collects the payment and then distributes payments to individual creditors. You will have no direct contact with the companies or people that you own money to that are covered under the Chapter 13 bankruptcy. Chapter 13 will require that you file a list of all of your assets and liabilities, your income and monthly expenses, copies of tax returns, any contracts and also a statement of your financial affairs. You will be required to get credit counseling before filing for bankruptcy. The counseling needs to be completed 180 days before filing. There are fees involved with filing Chapter 13 bankruptcy above those paid to your bankruptcy attorney. You will be responsible for a case filing and an administrative fee. These fees will need to be paid to the court when the bankruptcy is filed. The court can give permission to pay the fees in installments but those installments have to be paid in full no later than 180 days after the petition is filed. Finding the right Chapter 13 bankruptcy attorney can be one of the most important steps to get your financial troubles under control. Finances can be one of the biggest causes of stress. Choosing a cheap Chapter 13 bankruptcy attorney that you can trust and that will have your best interests in mind will help make this tough time just a little easier.

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Wade Robins asked:




Chapter 13 bankruptcy is for small businesses and people who have a steady income. Chapter 13 helps you to pay off a portion of you debt and avoid filing for bankruptcy. You receive enough time to repay your debts while retaining your property. You need to have a monthly income in order to file a chapter 13 so that you can live comfortably and still make a monthly repayment to your debtors. In most cases, a repayment plan allows for up to five years for repayment.

Before Filing Chapter 13 Bankruptcy

You need to consult with a debt credit counselor who has been approved for such a task. You need to participate in a course that teaches you about financial budgeting and teaches you how to manage your money instead of going in debt again. This course will show the courts you have learned to budget your money and be able to repay the money you agreed on for the repayment plan.

Chapter 13 bankruptcies has certain limits for filing which includes personal loans of less than three hundred thousand dollars and a maximum debt of nine hundred and twenty-two thousand dollars. There are some things excluded in filing bankruptcy, they include support, alimony, criminal fines, loans for education, and court ordered restitution.

When you make a repayment plan, you are committing to a legal binding agreement with the creditors to repay the debt. In most cases, a part of the debt is forgiven with an arranged payment plan. For the most part, you do not pay the payment yourself. A credit counselor who will represent you as a trustee receives the money from you monthly and distributes the money to the creditors in the agreement plan. Once the repayment plan is enforced, debtor cannot take action against you as long as you pay the monthly payments.

While the court order of protection under the chapter 13 bankruptcy exists, you cannot ring up any other debt exceeding two hundred and fifty dollars. This protects everyone concerned. Once you have a filed bankruptcy document, creditors cannot take any collection action against you or take any of your property.

Once you pay the filing fees and your papers for chapter 13 bankruptcies [http://www.filingpersonalbankruptcyhelp.com/Chapter_11_Bankruptcy/], you have up to fifteen days to file all the necessary paperwork regarding your finances. This is the critical step in filing for bankruptcy.

Keep in mind that debtors do not have to agree to the terms you and credit counselor set up, they have forty-five days to accept or decline the proposal. If they feel the deal does not benefit them, they will have another ninety days to file their claims with the court.

Chapter 13 Bankruptcy Summarized

You have the option to repay your creditors without collection procedures hindering your cause. Your property and assets are protected starting the day you file the papers. You will make a monthly repayment plan and need to stick to it in order for the order of protection to stay in affect. If you default on the repayment, you are subject to collections from the creditors and possibly a contempt of court order. Chapter 13 bankruptcy will protect you if you follow the instructions from the court.

http://rexkaufman6721.xanga.com/700031936/the-rules-of-chapter-13-bankruptcy/

Billings Farnsworth asked:




If you are experiencing severe financial distress due to the recent downturn in the American economy, you certainly are not alone. Many people who never thought they’d lose their jobs and who have always been able to support their families are now finding themselves in a position of having to fend off creditors and making difficult choices about which bills to pay and when. If you are falling further and further behind and cannot decide between filing Chapter 13 bankruptcy and trying to obtain other debt consolidation help, here are some facts to consider.

Keeping Your Home

Under Chapter 13: You usually can keep your home if you agree to continue the lender’s lien on it and are diligent in making your agreed-upon monthly payments after the Chapter 13 terms are made. Any back payments owed to the lender will have to be repaid as part of your Chapter 13 payment plan, of course.

Debt Counseling: A home equity loan, though tempting, does not give you any real protection Against property seizure should you be unable to repay it. If you agree to put any existing sheltered equity into the terms of the loan agreement, you risk losing that money as well.

What About Interest and Taxes?

Under Chapter 13: Any interest on existing debts are immediately frozen once the Chapter 13 goes into effect. At this point, creditors must comply with the law and agree to any court-ordered repayment plans.

Debt Counseling: In this situation, the interest rate offered by a debt consolidator is often lower than the credit card company’s, making this type of an arrangement seem extremely attractive. In addition, a debt consolidator may get creditors to agree to discharge up to 50% of the original debt. However, any amount saved in debt reduction is considered taxable income and will be reported to the IRS. So is there really that much savings?

If you are deciding whether or not to file for Chapter 13, it is wise to consult with an attorney who specializes in bankruptcies; not only will the lawyer help you determine if it’s right for you, he or she can assist you in making sure it’s done correctly and to your advantage.

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

Patience-Redhorse asked:


we have a truck payment of approximately $700 a month and my husband is soon going to lose his job.We have tried refinancing but everybody turns us down. I know if the car gets repossed we will have to pay the remaining balance after it goes to auction

cm_greer asked:


Ok, I have this friend who has gotten herself and her hubby in major debt. She has since talked him into filing bankruptcy. They talked to a lawyer and have decided to file chapter 13. She had a nice Tahoe that would have been paid off in 1 1/2 yrs and he has a 2005 truck. Since they are filing on their vehicles also she decided they should just get a new vehicle so they went and traded in the Tahoe for a 2007 fully loaded Chevy Suburban, which they are planning on adding into their bankruptcy. This does not seem right to me. I thought the idea of filing was to get out of debt and to help your financial situation, how can they do this, is this legal?????

gakare asked:


I have a few questions. I earn too much to file chapter7, and I don’t have enough disposable income to set up a payment plan with my creditors , (mostly credit cards) , what happens? 2. I am filing , but not my wife. How is jointly owned property handled? 3. I have adult children (not dependants) living at home who own and purchased things like cars, stereos, motorcycles etc. Can the court , or my creditors, physically come to my home to inspect ? Or do they just take my word for it ? I know , everyone is saying get an attorney, but I am going to do this myself. All I have to do is fill out about 40 pages !!??!. I live in Michigan.

Starting K asked:


Please give suggestions on allowing our home to go through foreclosure or other means during our Chapter 13 process. It has become very apparent that we are unable to afford it and is part of our total money outlay problem. Not sure we can sell this property and get out from underneath the total payoff amount.

Also, what would happen if we sold the home for less than the payoff? Is foreclosue an option. Sounds painful. Need and appreciate all help with this situation.

joe_blue_collar asked:


I have been researching filing Chapter 13 bankruptcy, but have had estimates of cost anywhere from $700 to $9,500. Nobody can seem to tell me until they start into the process. I know my case is fairly straightforward, I have no real estate or property to protect other than a car, and have other debts as well, but nothing unusual or elaborate.

I understand some of the fees are included in the Chapter 13 plan and paid over time.

I just want to know approximately how much I have to come up with in the beginning, out of my pocket, to file.

Does anyone have any real experience going through this, with the new laws the way they are now?