July 2009

31 Jul I Am In A Chapter 13–Can I Convert To A Chapter 7, I Don’t Like Chapter 13

A chapter 13 bankruptcy is often viewed as a repayment or reorganization plan, while a Chapter 7 bankruptcy is called a liquidation. In a Chapter 13, priority debts (back taxes, child/spousal support) are usually paid in full, followed by short-term secured debt (cars, arrearages on...

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31 Jul Cash For Clunkers? A Clunker of a Clunker Program

Yesterday, major news sources reported that the money set aside by Congress for the "Cash For Clunkers" program was being depleted rapidly (as explained in my blog, "Cash For Clunkers:  Short Deal").   In Detroit, car dealers were reportedly staying open late into the night in order to have customers be assured of the rebates before the money was depleted.  
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31 Jul Post-Petition Mortgage Payments–Good Records are Key

When you file a Chapter 13 to restructure your debts, you usually keep making your regular mortgage payments. In some districts, you make those payments to the Chapter 13 trustee, essentially consolidating all you debt payment. In those districts the trustee is referred to a conduit for mortgage payments. In others, you make your mortgage payments directly to the mortgage company, if you want to keep your home. If you don't, your mortgage company will file a motion, called a motion for relief from stay, asking the bankruptcy court to end the automatic stay that prevents actions against you or your property while you are in bankruptcy. If the court grants the motion, your lender can proceed with, or resume, their foreclosure action.
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