Tag Archives: #Chapter13Bankruptcy

What Are the Most Common Priority Claims in Chapter 13 Bankruptcy?

Chapter 13 bankruptcy allows you to reorganize your debt and create a reasonable payment plan to offload some or all of your debt. These payments plans typically last between three and five years before the remaining amount is discharged. When it comes time to create your plan for repayment, you may notice that some of your creditors are given priority over the others. What Are Priority Claims in Chapter 13 Bankruptcy? Once you’ve filed for Chapter 13 bankruptcy, your creditors will be categorized by their different types, including: Priority Claims Secured Claims Unsecured Claims Nonpriority unsecured claims Priority claims are debts that have been deemed nondischargeable through bankruptcy, and are to be paid in full through your repayment plan. Just because these debts are labeled nondischargeable does not mean that Chapter 13 bankruptcy will not help you take care of them. In fact, many people who file for Chapter 13…
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How Do You Know When It’s Time to File Bankruptcy?

Declaring bankruptcy doesn’t have to be intimidating or scary; in fact, the process is quite simple and can leave you feeling immensely relieved. Filing bankruptcy is often the best solution for people struggling with debt, but it’s not the only option. You may be wrestling with the decision to either continue paying off debt or file bankruptcy. Sometimes, knowing when it’s time to file bankruptcy can be difficult. The short answer is to file when you have more debt than you could feasibly pay off, but situations are often more complicated than that. Benefits of Bankruptcy Both Chapter 7 bankruptcy and Chapter 13 bankruptcy offer what is called an “automatic stay”, which effectively stops all harassment, collection, repossession, and foreclosure actions. Chapter 7 bankruptcy often allows individuals to walk away from most or all of their debt, completely free of it, within a few short months. Chapter 13 bankruptcy can…
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What You Need to Know about Chapter 13 Lien Stripping

If you are thinking of filing for Chapter 13 bankruptcy and have a second mortgage on your property, you should understand the process of lien stripping. Almost unheard of to people unfamiliar with bankruptcy law, lien stripping has become more popular due to factors surrounding the current housing market. In Chapter 13 bankruptcy, you will come up with a payment schedule based on your income in order to eliminate your outstanding debts. The first debts affected by your payment schedule will be the secured ones, which are the debts with collateral attached to them. Home loans, car loans and other property that can potentially be repossessed fall under this category. Lien stripping is the process of forgiving debts that are not usually eligible to write off. Your second mortgage is a secured debt, but when you utilize lien stripping, the debt becomes unsecured and thus dischargeable. Examples of Chapter 13…
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