Chapter 13 Bankruptcy

What Is A Motion For Moratorium On A Chapter 13 Bankruptcy?

A motion for moratorium in a chapter 13 bankruptcy is a request by the debtor to temporarily suspend normal chapter 13 plan payments. The debtor’s attorney must file a motion with the bankruptcy court requesting a hearing to obtain permission from the bankruptcy judge to temporarily suspend the chapter 13 plan payments made by the debtor.

The debtor must provide adequate reason to temporarily suspend the chapter 13 plan payments. Normal reasons for the suspension or moratorium of the payments may be temporary unemployment, illness in which the debtor cannot afford the normal chapter 13 plan payments, or other legitimate […]

Why Is Confirmation Important In A Chapter 13 Bankruptcy?

Confirmation is very important in a chapter 13 bankruptcy. Under 11 USC 1325 the bankruptcy court can approve, or confirm, the chapter 13 plan. The chapter 13 plan is usually developed by the debtor and presented to the chapter 13 trustee for his or her approval. If the chapter 13 trustee recommends confirmation of the chapter 13 plan, the bankruptcy judge will usually confirm, or agree to the Chapter 13 plan payments.

The chapter 13 plan usually consist of how the debtor’s debts will be paid through the chapter 13 plan process. In the chapter 13 plan, the debtor’s debts […]

What Happens if I Surrender my House in Bankruptcy?

Many times in bankruptcy, clients decide to surrender or give up their house. Either in a chapter 7 bankruptcy or a chapter 13 bankruptcy, you have the decision to keep your home and continue to make payments on the home or you can give up the home and virtually eliminate the debt on the home. If you decide to surrender or give up your home in the bankruptcy, you will have several months that you may still live in the home before you have to move out. The exact length of time you can stay in the home is […]

What if My Car Breaks Down in a Chapter 13 Bankruptcy?

Many times if a person is in a Chapter 13 bankruptcy, they may need to purchase another car during the bankruptcy time period, which is usually 3-5 years. Sometimes a current car may break down and the debtor needs another vehicle.

In this event, the debtor must receive permission from the Chapter 13 Trustee or the Chapter 13 bankruptcy judge to finance another car. Usually the attorney for the debtor will have to file what is known as a “motion to incur debt.” This is a document requesting a court appearance in front of the judge. The debtor will ask […]

Who is the Chapter 13 Trustee?

 The chapter 13 Trustee is usually an attorney appointed by the federal bankruptcy courts to disperse money to a chapter 13 debtor’s   creditors. The debtor will make direct payments to the chapter 13 Trustee and the chapter 13 Trustee will disburse this money to the creditors of the debtor. Usually the mortgage payments on a home, that is the principal residence of a debtor, is paid to the chapter 13 Trustee in the chapter 13 plan . Most secured debts  are paid in the chapter 13 plan, these may include car payments.
Most unsecured debts, such as credit cards and medical bill, are […]

Do I Need To Appear in Court If I File Bankruptcy?

Under federal law you must attend at least one court hearing known as a “creditor’s meeting” or the “meeting of the creditors” shortly after you file the bankruptcy.

This is a requirement of 11 USC § 341 of the federal bankruptcy code.

This court hearing will usually take place about 20-40 days after you file the bankruptcy. If you are a resident of a larger city the court hearing is usually held in your city.  However, if your bankruptcy court hearing is in a smaller city, you may have to drive to a nearby larger city for this creditor’s meeting.  Most of […]

What Is A Discharge in Bankruptcy?

A discharge in bankruptcy is when your debts are wiped out. This occurs after you have filed the bankruptcy and had a successful creditors’ meeting. The discharge in a bankruptcy will typically occur in 70-90 days in a Chapter 7 bankruptcy and in a Chapter 13 bankruptcy it will occur at the end of your Chapter 13 plan.

What Is A Secured Debt?

There are two most common types of debts. Unsecured debts and secured debts. A secured debt is one that is tied to a piece of collateral. If you do not pay unsecured debts they can sue you to try an collect a debt. However, if you do not pay a secured debt then it means the creditor can try to seize the property through a repossession or foreclosure.

An example of this is when someone doesn’t pay their mortgage payments the mortgage company forecloses on their house. They can do this because the mortgage debt is secured by the house. […]

What Is An Unsecured Debt?

An unsecured debt is a debt that is not secured, or attached, to collateral. In other words, if you don’t pay an unsecured debt they cannot come and repossess or seize property. Instead, a creditor would have to file a lawsuit against you and obtain a judgement on that lawsuit before they could try to seize any property. Common examples of unsecured debts are credit cards, medical bills and personal loans. These are different than a mortgage, for example, that is secured by a house. An unsecured debt can usually be completely wiped out in a Chapter 7 bankruptcy […]