Chapter 13 Bankruptcy

02 Mar Bankruptcy Basics–Chapter 13, What Does That Mean?

A Chapter 13 bankruptcy is a bankruptcy case filed under Chapter 13 of the U.S. Bankruptcy Code. The Bankruptcy Code is part of Title 11 of the United States Code. Chapter 7 is titled "Liquidation". Some other sections of Title 11 apply to Chapter 13 Debtors even though the rules are in different chapters. For example: Chapter 1 defines who can be a debtor. Chapter 3 deals with how the cases (under any chapter) are handled by the courts, trustees, and others. Chapter 5 talks about creditors, debtors and the estate of the debtor. The whole law has to be read to understand what applies and what doesn't apply. An attorney can help guide you through the maze known as 11 USC and help you find the relief that is sometimes hidden in the Code. A chapter 13 bankruptcy is available only to a real life person, no corporations or limited liability companies allowed. (Those would file either Chapter 7 or Chapter 11 bankruptcies). A Chapter 13 bankruptcy is sometimes referred to as "reorganization". The US Bankruptcy Code still imposes a "stay" so that creditors must not try to collect debts.
Read More

01 Mar The Fate of Co-Signed or Guaranteed Debt in Bankruptcy

If any of your debts have been guaranteed or co-signed by a friend or relative, your bankruptcy filing could damage your friend or relative's credit. Lenders, whether automobile finance companies, credit card lenders, mortgage lenders or any other type of credit grantor, are in the business of evaluating and managing risk. If your credit profile has been poor for a while, you may have been asked by the credit grantor to find a guarantor or co-signer.
Read More

24 Feb Divorce During A Chapter 13 Bankruptcy

You filed a Chapter 13 bankruptcy to save your home and your car, but now you and your spouse are separated and have filed for divorce. What happens to your case? (See also, What If My Spouse Dies During Our Bankruptcy?). Every bankruptcy attorney who files Chapter 13 bankruptcies has this issue arise from time to time. When you approach your attorney about your divorce issues, you must remember that your attorney represents both of you, and cannot help you in any way that could be detrimental to your spouse.
Read More

18 Feb Chapter 13 Bankruptcy: What Happens If I Cannot Complete My Chapter 13 Plan (Part Three)

Your Chapter 13 bankruptcy cannot be modified or converted! Sowhat happens when you can neither modify your Chapter 13 plan, nor are you eligible to convert a Chapter 13 bankruptcy into a Chapter 7 bankruptcy? Another option you can consider is seeking a Hardship Discharge. A Hardship...

Read More