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Bankruptcy, Podcasts
Click to Listen. Right Click Audio as it’s playing to download to your device. When is it Preferable to File a Chapter 13 bankruptcy vs. Chapter 7? First let’s talk about what the basic difference is. Chapter 7 is liquidation of debts. In a Chapter 7 bankruptcy all your debts other than debts which you specifically reaffirm such as a car loan, or a home mortgage, or debts which are not dischargeable, such as federal taxes, or student loans, all other debts are discharged. Whereas in a bankruptcy, the unsecured debts or some portion of them, typically a small portion of them is paid off over a period of time three to five years. So taking that fundamental distinction between Chapter 7 and 13 into consideration what are some reasons why a Chapter 13 might be preferable? Well, I’ve listed five and not necessarily in any particular order. First of all, someone’s behind in their mortgage or their car loan they want to make up the payments but the bank is saying no, you’ve got to pay it all at one time. In a Chapter 13 bankruptcy, the court can require that the lender accept the payment of the backdue payment over a three to five year period during the course of the plan. Another, number two would be if you have a tax obligation or student loan which is not dischargeable in a Chapter 13 bankruptcy, the creditor whether it be the IRS or the student loan lender is required to accept whatever payments the judge approves within the Chapter 13 plan. Which may be significantly less than...
Bankruptcy
Under a Chapter 13 plan, the debtor makes payments based on the type of claim by the creditor. Each creditor’s claim is classified into three types of categories: secured, priority, and unsecured. As such, it is important to understand the different rules for claims based on their classifications. Here is a basic outline for the treatment of creditors in a Chapter 13 case. Secured Claims: The debtor has three alternatives for treatment of secured claims. First, the debtor is allowed to treat secured creditors consensually and provide them equal treatment. This means each secured creditor is treated the same and can only receive different payments if he agrees to a lesser amount. Second, the debtor is allowed to pay the claim and preserve the lien while payment is pending. This means the creditor becomes entitled to foreclose on the full balance only if the debtor defaults before completion of the Chapter 13 plan. Third, the debtor is allowed to surrender the collateral to the holder of the claim. This means that the secured claim is disposed and the debtor’s obligation to pay is terminated. Each alternative is an option decided by the debtor under a Chapter 13 plan. Priority Claims: All priority claims are required to be paid in full by deferred cash payments unless the holder agrees to different treatment. Thus, the order of priority is not as directly relevant in a Chapter 13 case as it is in chapter 7. Unsecured Claims: The debtor is allowed to divide unsecured claims into classes. However, the required amount to be paid on each unsecured claim must be no lower...
Bankruptcy
Making the Decision to File Bankruptcy The Lanigans explain how Chapter 11 Bankruptcy and Chapter 13 Bankruptcy differ. Chapter 13 bankruptcy and Chapter 11 bankruptcy are both plans of reorganization but they have very specific differences. When you reach the point where you are considering bankruptcy contact Winter Park, Florida, lawyer Roddy Lanigan for a meeting to determine your bankruptcy options. The final decision is yours but you have to qualify and find out based on your finances which bankruptcy is optimal. Chapter 11 Bankruptcy Chapter 11 is usually for businesses or for individuals who owe much more than the average person. Chapter 11 allows businesses to get on a payment plan and try to get out of debt while still operating as a viable company. Section §109(d) governs Chapter 11 which gives the same list found in §109(b) for Chapter 7 (you can file in Chapter 11 only if you can file under Chapter 7) except Chapter 11 includes railroads, uninsured banks and banks organized under the Federal Reserve Act. Chapter 11 is very loose, can be expensive and complex but this flexibility allows the companies to negotiate and can take a lot of time. In addition, Chapter 11 does not require a trustee and the person running the bankruptcy is known as the “debtor in possession.” This allows any party of interest to file a plan which is then voted on by the creditors to determine which one best serves their interests. Chapter 13 Bankruptcy Conversely, Chapter 13 bankruptcy is known as the “working man’s or woman’s plan” and focuses on average consumers who are not looking to...
Bankruptcy
Be Prepared for All Your Meetings After the recent economic meltdown a large number of people are falling into debt and are turning to bankruptcy or a debt consolidation program to pay off the debt. The number of people filing for bankruptcy or pursuing debt consolidation is constantly increasing. When filing for Chapter 13 bankruptcy people go to a lawyer who helps them pay creditors in compliance with a court-ordered repayment plan. Knowing how to file this bankruptcy properly with the direction of a qualified lawyer is important. Winter Park bankruptcy attorney Eric Lanigan and Roddy Lanigan will give you a questionnaire and find out who your debts are owed to in what amounts. They’ll complete all forms after you’ve provided an in-depth informational questionnaire. They’ll provide you with dates for any court appearances you must attend, and what counseling prior to filing that you will need to go through and complete. · Fill out all answers completely, accurately and according to the directions the Lanigans provide. You must provide answers honestly and complete all paperwork for the Chapter 13 as instructed. The more completely, accurately and promptly you complete your paperwork, the more quickly the process will go. Be sure to keep copies of all of your paperwork and do not give your originals away. You will not be able to get them back. · You will have to pay for and complete a session with a credit counseling organization and go through the first of two sessions online before filing your Chapter 13 bankruptcy. The counselor will ask you a few questions about your debt from the...
