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Chapter 13 Bankruptcy Article
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Paying Your Debt Using a Chapter 13 Bankruptcy
from:It's possible to actually establish a court monitored debt repayment plan using a chapter 13 bankruptcy. This kind of bankruptcy allows you to still get the relief you need from collection calls, garnishments and lawsuits. In effect, you ask the court to intervene on your behalf with your creditors to get some breathing room. The repayment plan usually calls for listed debts to be repaid within 5 years.
Of course, the US bankruptcy court can do what it wants and in some situations a longer period of time is allowed. The measure used is the relationship of your current monthly income to your expenses. There are standard formulas used in order to determine eligibility for this type of bankruptcy. Any individual is permitted to file a chapter 13 as long as the secured and unsecured debts are under a certain amount. Your bankruptcy attorney will review all of your debts and categorize them in order to determine if you meet eligibility requirements.
When you file a chapter 13, you go through many of the same steps you would go through if filing a chapter 7. You have to complete a series of financial schedules which list your income and expenses. You also must complete a credit counselling course which teaches about budgeting and managing money. A court appointed trustee will review your documents and require you to appear before him or her and answer questions about your financial documents.
When you complete your financial information, you will have to reveal "all" in essence. You have to list your creditors, all of your income, any property you own and your monthly expenses. When the bankruptcy attorney files the bankruptcy, a stay is issued to creditors and that is when you will feel the first relief from collection efforts. You will have to work with your attorney to develop a reasonable repayment plan that is then submitted to the courts.
In a chapter 13 bankruptcy your various debt categories are handled differently. The court will establish the priority claims which must be paid first. Then the court will determine how debt secured with collateral will be handled in the repayment plan. Finally, the unsecured debts are included in the payment plan, but they do not have to be repaid within the 5 years. The point of the repayment plan is that you pay all excess income over reasonable living expenses to your debtors.
There are advantages to using a chapter 13 bankruptcy instead of a chapter 7. First and foremost, if your house has already gone into foreclosure, the process can be stopped. Back payments due on your house are included in the repayment plan which gives you time to catch up. In a chapter 13 bankruptcy it is also possible to lower your payments on your secured debts. There are many other advantages too, and your attorney will review them with you while deciding if a chapter 13 bankruptcy is the right choice in your situation.
Chapter 13 Bankruptcy News
Bankruptcies
The following businesses or individuals filed bankruptcy petitions in the U.S. Bankruptcy court in Tampa for March 12 to 16. Chapter 7 filings are for companies and/or individuals whose assets are being liquidated to pay creditors. Chapter 11 is for companies seeking to reorganize while under bankruptcy court protection; and Chapter 13 is for individuals who are working out a repayment of debts.
Read more...Turnwald: Bankruptcy could possibly discharge second mortgage
Do you want to change the size of your mortgage payment? It can be done in certain circumstances in a Chapter 13 bankruptcy. Declining home values in mid-Michigan have caused mortgages to depreciate or go “underwater.” That means the house is worth less than what the homeowner owes on the mortgage.
Read more...Reno’s Silver Legacy Resort files for bankruptcy
RENO (AP) — The Silver Legacy Resort Casino has filed for Chapter 11 bankruptcy, but its owners said it won’t affect the ongoing operations or any of the 1,800 employees at one of the largest hotel-casinos in northern Nevada.
Read more...Research and Markets: Reorganizations Under Chapter 11 of the Bankruptcy Code
Dublin - Research and Markets has announced the addition of the "Reorganizations Under Chapter 11 of the Bank
Read more...REFILE-Dewey to consider bankruptcy filing - source
(Corrects month in which Dewey partner said no plans forbankruptcy to May from March in paragraph 13 of story publishedMay 18) * New crop of creditors pressuring Dewey to seek bankruptcy- source * Creditors ...
Read more...The Cake Shop in Chapter 11
Company CEO Perla Salzillo and CFO Jose D. Salzillo, who together own the bakery, also filed for personal bankruptcy reorganization under Chapter 13 of the U.S. Bankruptcy Code. The Cake Shop, which operates from two locations in The Colonnade and Stone Oak, reported assets of $45,000 and debts of about $110,000 in its bankruptcy petition.
Read more...MUSIC LOCKER SERVICE FILES FOR BANKRUPTCY
San Diego’s MP3tunes, the 7-year-old music locker service run by digital music entrepreneur Michael Robertson, has filed for Chapter 7 bankruptcy under the weight of legal bills from a long-running copyright lawsuit.
Read more...Bank’s no Ally for NY homeowners
Two weeks ago, a Westchester family had finally reached the end of seven years in foreclosure hell.Then the plate tectonics of the massive bank that controls their fate shifted. Ally Financial, formerly GMAC, filed Chapter 11 bankruptcy for its troubled Residential Capital mortgage unit last Monday. Ally owes taxpayers...
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