February 2012

29 Feb Does a Chapter 13 Debtor Really Have to Get Court Permission to Sell Property?

A Chapter 13 debtor MUST get Bankruptcy Court permission to sell property while their Chapter 13 case is pending. In fact a debtor in ANY bankruptcy chapter must get court permission. Permission to sell comes in the form of an Order from the Court, which only comes after a motion is made seeking the Order to allow the sale of the property in question. The motion to sell must attach a copy of the sales contract, and must list the purchase price, proof of the property value, and where the proceeds of the sale are to go. If an attorney and/or realtor are getting paid from the sale proceeds, they need to be specifically approved to be paid as professionals. It takes some time to get an Order from the Bankruptcy Court approving the sale.
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29 Feb Another Southwest Florida Bankruptcy Judge OKs Chapter 20 Lien Strip

The most recent court opinion, In re Scantling, written by Bankruptcy Judge Michael G. Williamson, agrees that a debtor can file a Chapter 20 and strip his or her second mortgage (or whatever is left of it) despite not being eligible for a discharge. A Chapter 20 Bankruptcy is a slang term used in the bankruptcy world. When debtor files a Chapter 7 and receives a discharge of all dischargeable debts, then follows the Chapter 7 with a Chapter 13 bankruptcy.
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24 Feb Chapter 13 Bankruptcy Has No Minimum Payment For Credit Cards

Chapter 13 bankruptcyfilings often requires that a filer pay something every month to a trustee. The trustee distributes those payments according to a court-approved plan. Nothing in the Bankruptcy Code requires a minimum payment, aminimum dividend, to be paidto anygeneral unsecured creditor such as like...

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