The debt ceilings for Chapter 13 bankruptcy filings are increasing effective April 1, 2013. The new limits are approximately $,150,000 for secured debts and approximately $383,000 of unsecured debts. Continue reading
Category Archives: Chapter 13
Debtor May Strip Unsecured HOA Lien Off Homestead
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Debtors living in homes with upside down mortgages can strip their second mortgages off their homestead in a Chapter 13 bankruptcy when their home is worth less than the first mortgage balance. What if the debtor does not have a second mortgage but owes his HOA dues and assessments incurred prior to bankruptcy, and the HOA has recorded a lien to secure repayment. Continue reading
Chapter 13 Bankruptcy Strips Second Mortgage Notwithstanding Prior Chapter 7 Discharge: Court Holds
Chapter 13 bankruptcy offers debtors the opportunity to strip off a wholly unsecured second mortgage on their primary residence. Most courts have held that debtor’s mortgage is stripped from his house when he completes the Chapter 13 plan and gets his Chapter 13 discharge.
Chapter 13 Does Not Permit One Spouse Filing Alone To Cram Down Mortgage
Here’s an interesting bankruptcy court decision about stripping down a partially unsecured mortgage on an investment property in a Chapter 13 case.
Mortgage Modification’s Amazing Result: Bank Forgives First Mortgage: Debtors’ House Now Free And Clear
This past week I witnessed one of the most extraordinary results imaginable in a Chapter 13 mortgage mediation when two married homeowners were able to combine several new mortgage incentive and rebate programs to achieve the ultimate mortgage modification possible…a total and complete write off of their principal balance. By the time all the mortgage program benefits were applied this bank agreed to strip off the homeowners’ entire first mortgage. The mortgage balance is 0; this family owns their house free and clear.
Chapter 13 Bankruptcy Can Strip HOA Lien
Chapter 13 bankruptcy can strip a second mortgage from a primary residence if the house is worth less than the first mortgage so that the second mortgage is not secured by any equity. Continue reading
Mortgage Modification Or Chapter 13 Bankruptcy: Which Comes First?
Some of my bankruptcy clients are considering Chapter 13 bankruptcy to save their homes and strip off a second mortgage. These people are simultaneously investigating a modification of their first mortgage through one of the mortgage modification programs offered by their mortgage lender and the government’s mortgage initiatives. Continue reading
Chapter 13 Cram Down Of Investment Mortgage Unfair To Unsecured Creditors
Chapter 13 bankruptcy provides debtors the ability to cram down mortgages on their investment property provided that the investment mortgages be paid in full during the Chapter 13 plan. The cramdown opportunity is designed to help the debtors save their investment real estate as part of a reorganization, but the opportunity requires good faith and fairness to other creditors. Continue reading
Chapter 13 Wage Deduction Order For Defense Industry Employees
Chapter 13 plans have a very high completion rate when debtors agree to pay using a wage deduction order. Payment is more likely when deducted from your paycheck as opposed to having to discipline yourself to give the Chapter 13 payment priority over other household expenses. Continue reading
Chapter 13 Plan Payments And Increases In Debtor’s Income
Most people are optimistic about their future including most of my clients in Orlando who file Chapter 13 bankruptcy. Continue reading