Tag Archives: Chapter13Bankruptcy

What Are Cramdowns in Chapter 13 Bankruptcy?

Chapter 13 bankruptcy allows thousands of people to reorganize their debt so they can make serious progress towards paying it off. In most cases, petitioners are able to hold onto most, or all, of their assets. However, some cases are different, and collateral property, such as a home or car, may be vulnerable to repossession. In those cases, it may still be possible to save your property by using cramdowns. What Are Cramdowns? Cramdowns in Chapter 13 bankruptcy are used to lower the principle balance of a certain debt to equal the value of the collateral property. This will usually prevent the creditor from taking the asset, allowing you to continue paying off a portion of the debt and keep your car or other property. Benefits of Cramdowns in Chapter 13 Bankruptcy Cramming down debts in Chapter 13 bankruptcy can help you to lower monthly payments, and stretch them out…
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What If a Creditor Rejects Your Payments?

If you have a large outstanding debt, chances are that it will eventually go to a collection agency. These agencies use harassing techniques to get what money they can from you, including multiple phone calls a day and letters. In order to make it stop, you may be able to work out a settlement deal with them, but it doesn’t always work out. In some cases, a creditor or a collection agency may even refuse to accept payments from you. What If a Creditor Rejects Your Payments? Although a creditor or a collection agency can choose to accept settlement deals for less than the original amount, they are not required by law to do so. Not only can a collection agency demand the full amount, but many states allow them to add on extra fees and interest rates if the debt remains unpaid. What Can You Do If Your Settlement…
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How Do I Choose Between Chapter 7 Bankruptcy and Chapter 13 Bankruptcy?

Chapter 7 bankruptcy and Chapter 13 bankruptcy are similar in that they both offer people a fresh start and a chance to eliminate some – or even sometimes all – of their debts. The similarities between the two forms of bankruptcy generally stop there. Choosing which chapter of bankruptcy is the better option for your situation can appear difficult, but it becomes much easier once you learn a little bit about the two. Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy Chapter 7 bankruptcy is much quicker than Chapter 13. Petitioners typically go through the entire bankruptcy process and come out with little or no debt within a few months. Chapter 13 bankruptcy usually takes about three to five years because it allows those who file some time to pay back what they can before discharging the rest of their debt. Chapter 13 bankruptcy is more common among those with regular…
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Bankruptcy Trustees: What They Do and Why

If you file for bankruptcy, regardless of whether you file for Chapter 7 or Chapter 13, the court will appoint a bankruptcy trustee to your case. Bankruptcy trustees are not lawyers (although some trustees go on to be lawyers), and do not work for creditors. They are there to be an impartial third party responsible for facilitating your case and making sure that everything goes smoothly. If you file Chapter 7 bankruptcy, it is the trustee’s job to collect information from you about all of your property, and then to liquidate any non-exempt assets in order to pay your creditors. It is his or her responsibility to allocate money to your creditors as fairly as possible. All you have to do is turn over any assets you have, and the rest is up to the trustee. In the case of Chapter 13 bankruptcy, the role of the trustee is similar…
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How Much Does It Cost to File Bankruptcy?

When filing for bankruptcy, you will be required to pay certain filing fees and other costs related to credit counseling. Many people who are filing bankruptcy cannot afford to pay the associated fees, but there are a couple solutions. You could either set up an installment plan in some cases, or have the fee waived completely if you qualify. Here we will provide a brief summary of the cost to file bankruptcy, including the types of fees you will have to pay, or have waived, and when you will have to pay them. Cost of Filing Bankruptcy The fees for filing a bankruptcy petition are increased every once in a while, but for now, the costs listed below are the most up-to-date numbers for individual bankruptcies. Chapter 7 – $335 $245 filing fee $75 administrative fee $15 trustee charge Chapter 13 – $310 $235 filing fee $75 administrative fee The…
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