Saving a house from foreclosure is the single reason most people file bankruptcy. Bankruptcy stops foreclosure- that’s a given. But then what? How can bankruptcy save the house from foreclosure, rather than just putting off the inevitable loss? After all, the mortgage lender has a lien on the house, and liens aren’t discharged in bankruptcy. […]
Chapter 13 Eligibility Just Greatly Expanded
Congress has just expanded and simplified eligibility for Chapter 13 by enacting new debt limits. This is big news and long-awaited. Upon the president’s signature on S. 3823 on June 21, Chapter 13 debtors can have up to $2.75M in debts and qualify for the streamlined reorganization offered by Chapter 13. The previous, two-part analysis […]
7 Keys To Keeping Your House: Chapter 13 After You File
Filing Chapter 13 bankruptcy stops the foreclosure. You’ve protected your home, for the moment. Bankruptcy gets you a sheltered legal environment to address the problems with your mortgage. You heave a sigh of relief. But the fight to keep your house isn’t over, just because there’s a stay. You’ve just gotten through the first round. […]
Debt Limits Increase For Chapter 13 Bankruptcy
Debt limits to swell to $2.75M under new legislation New debt limits for Chapter 13 became effective on April Fool’s Day, 2022. (these limits will be superseded by newly enacted limits upon the president’s signature, expected daily.) The new numbers are effective for cases filed after April 1, 2022 and will control for the next 3 […]
How Chapter 13 Cuts Car Loan Down To Size
Car lenders who make new car loans with an underwater trade-in will face the music in Chapter 13. The Supreme Court declined to review a 9th Circuit decision that stripped car loans of their protected specially protected status in bankruptcy; as a result, Californians will continue to benefit from the debtor-friendly decision in Penrod, rising out of […]
Chapter 13 Dismissed After All Payments Are Made: Self Inflicted Wounds
There’s been a rash of bullet-ridden feet lately in Chapter 13 cases. Debtors seem to whip out their pistols and shoot themselves in the foot with increasing regularity. Just when their goal of keeping the house was within reach, had they paid attention, they lose it all. It happens when debtors don’t hold up their […]
