Chapter 13
Chapter 13 De-Mystified: Simple Explanation of a Chapter 13 Plan
Because Chapter 13 is hard to understand in a vacuum, using a hypothetical situation is the best way to show just how much Chapter 13 could help the average family. Below is an example of how Chapter 13 would help “John and Mary Smith,” a young couple how have had trouble making the payments on…
Read MoreFHA Says You Can Qualify for a Mortgage Two Years After Filing Bankruptcy
It seems everyone knows that you can’t get a mortgage after filing for bankruptcy, or that bankruptcy will forever ruin your credit, or that you will never again be able to finance the purchase of a new car if you file bankruptcy. On the other hand, everyone seems to know you have to wait ten years…
Read MoreWorried About the Bankruptcy Means Test? Supreme Court Says It Doesn’t Apply in Chapter 13
If your income is above the median income for your state, then it’s likely you already know that you’ll have to pass the “means test” if you want to file chapter 7. Congress put the means test into the bankruptcy law in 2005, presumably to induce more bankruptcy debtors to file debt-repayment chapter 13 cases rather…
Read MoreSecond Mortgage Lien Stripping in Chapter 13 Approved by Appeals Court
Minnesota residents no longer need to wonder if a second mortgage (or any junior mortgage) can be “stripped” in a chapter 13 case, thanks to a recent ruling by the Eighth Circuit Bankruptcy Appellate Panel. In this Minnesota case, In re Fisette, No. 11-6012 (8th Cir. BAP August 29, 2011), the appeals court sided with…
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