Chapter 13 Bankruptcy

09 Mar How Many Bankruptcy Cases Can You File?

In most cases, the purpose for filing bankruptcy is to obtain a "discharge." A discharge is a document issued by a bankruptcy judge that serves as legal proof that you have satisfied your obligation to affected creditors. Should a creditor attempt to come after you for a discharged debt, your discharge order will serve as proof that the creditor's claim has no merit. Similarly, a discharge can be used to clean up your credit reports. If your credit files show an unpaid balance on a debt that was discharged, you can use your discharge order to force the credit reporting agency to change its records. What happens if your file for bankruptcy - either Chapter or Chapter 13 - but circumstances lead you back into financial crisis and you have to file again. Are you allowed to file more than one bankruptcy in your life? Fortunately, the answer is "yes" - you can file multiple bankruptcy cases if you need to do so. However, there are some very specific rules that limit these subsequent filings.
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07 Mar Strip down of car loan OK

A decision this week out of the Eastern District of North Carolina should be music to the ears of Chapter 13 debtors with recent car loans. Judge Small ruled in the Telephius Price case, 06-00957-5 that the infamous "hanging paragraph" inserted in the Bankruptcy Code does not prohibit the cram down of the car loan if the purchase loan financed charges other than the price of the car. The background of the issue is found in efforts of car lenders to lobby Congress to prevent Chapter 13 debtors from stripping down the lien to the value of the car at filing: the claim was treated as a secured claim, and paid with interest, to the extent that there was value in the car and the balance of the debt was treated as unsecured.
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06 Mar Should I Be Scared of the Meeting of Creditors?

In the overwhelming majority of cases, the Meeting of Creditors (also called the "341 Meeting," because it is authorized by Section 341 of the Bankruptcy Code) is about 5 minutes long, no creditors appear, and the Meeting consists of Trustee going through a series of standard questions. Why, then, do most of my clients hear the words "Meeting of Creditors" and get a mental image of being seated in a straight-backed chair in a large, darkened room, with a spotlight in their face, and their creditors in hooded robes chanting around them?
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