Tag Archives: chapter 13

Where Balances Went Up With Real Estate, Cram Them Down in Chapter 13

On Monday, I talked about using a Chapter 13 bankruptcy to cram down a car loan. However, debtors are also able to cram down mortgages on real estate as well, for property not used as the principle residence. Again, the cramdown is used for debtors who now owe more on a loan than the property is worth. As I said, the cramdown only applies to mortgages that are not the debtor’s primary residence. Many people buy real estate as an investment, and in recent years, it is far from uncommon for many of these investors to find that the value of the property has plummeted to far less than what they originally paid for the property. Similar to the car loan cramdown, a mortgage cramdown allows debtors to pay back what their properties are worth now rather than what they owe on the loan. And also like cramming down a…
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What Is The Difference Between a Chapter 7 and Chapter 13 Trustee?

On Monday I discussed some of the general duties of a bankruptcy trustee in both Chapter 7 and Chapter 13 cases. Trustees in these two types of cases, however, are going to be looking for different things and be involved for different lengths of time. I will start with Chapter 7 bankruptcy, where the main objective of the trustee is to liquidate your non–exempt assets for the benefit of creditors. Your bankruptcy attorney can help you retain as much personal property as possible by using exemptions. The trustee is looking for non-exempt assets to liquidate to cash for your creditors, but he or she also receives a percentage of the funds he or she collects, which gives the trustee incentive to maximize the amount of assets recovered. Whereas a Chapter 7 case can be resolved in a matter of months, a Chapter 13 case will take years and, consequently, the…
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