What can I do with Chapter 13 bankruptcy?

What can I do with Chapter 13 bankruptcy?

For instance, many people use chapter 13 bankruptcy to stop foreclosure and repay late mortgage payments. However, not all chapter 13 petitioners who qualify for a 3 year plan can cure their delinquent mortgage debt over 3 years, and need up to 5 years to pay off this delinquent mortgage debt.

Can a 3 year Chapter 13 plan be used?

However, not all chapter 13 petitioners who qualify for a 3 year plan can cure their delinquent mortgage debt over 3 years, and need up to 5 years to pay off this delinquent mortgage debt. This situation usually creates justifiable cause for extending the chapter 13 plan for up to 5 years.

When to use a 3 year bankruptcy plan?

Certain situations create justifiable cause for extending a 3 year plan up to 5 years. For instance, many people use chapter 13 bankruptcy to stop foreclosure and repay late mortgage payments.

When does the automatic stay of bankruptcy take effect?

If you filed two or more bankruptcies in the previous year, and then file a third bankruptcy, the same presumption of bad faith exists, and the automatic stay will not take effect at all upon the third filing (11 U.S.C. § 362(c)(4)).

Bankruptcy protection may help people overwhelmed with debt. Chapter 13, also called “wage-earner bankruptcy”, allows the individual to propose a plan to repay their debts interest-free over a three to five-year period, although the individual’s payment plan is subject to court approval.

How is the balance of a chapter 13 bankruptcy determined?

Provide a way to pay past-due house, car, income tax, child support and alimony payments over time. Substitute for the need to sell or turn over the nonexempt property. The amount of the payment is determined by the amount and types of debt owed, the debtor’s income and the debtor’s reasonable and necessary expenses.

When does adequate protection stop in Chapter 13?

Also, your lender can file a motion with the court to request payment. Once a bankruptcy judge confirms your case, adequate protection payments will typically stop, and the creditor will receive regular payments according to the terms of your plan. Learn about the steps involved in a Chapter 13 case.

What are the different types of bankruptcy protection?

There are two types of bankruptcy protection commonly used by individuals: Chapter Seven, and Chapter 13, where “chapter” refers to the chapter of the bankruptcy code that describes each one. In Chapter Seven, also called a “straight bankruptcy” or “ liquidation ”, a trustee is appointed to control the individual’s assets.

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