Washington DC and Maryland Bankruptcy eNewsletters

Can You File Chapter 13 After Completing Chapter 7 Bankruptcy?|Washington DC Bankruptcy Attorney Demystifies Chapter 20

Filing for a Chapter 13 bankruptcy after completing a Chapter 7 bankruptcy, commonly referred to as a Chapter 20 bankruptcy, is one way to take care of debts not cleared by the Chapter 7. To clarify, a Chapter 7 bankruptcy will often leave the debtor with certain debts still intact. While credit cards payments may have been forgiven, unaddressed car and mortgage payments will still remain after a Chapter 7. A Chapter 20 bankruptcy helps the debtor put those unaddressed debts into an easily payable order. The following are common reasons for filing for Chapter 20 bankruptcy: Behind on Mortgage or Car Payments – Even though the debt for a mortgage or car payment has been discharged by the Chapter 7, the creditor’s liens remains in effect. As such, your house can be foreclosed and car repossessed if you fail to make payments. Priority Debts – Certain priority debts cannot…
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What Is the Significance of the Chapter 13 Means Test?

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) introduced what is known as the “bankruptcy means test,” a method for determining one’s monthly disposable income and ability to pay back creditors. In a Chapter 7 case, the means test establishes one’s eligibility to file Chapter 7 and receive a Chapter 7 discharge; that is, a person who wants to file Chapter 7 bankruptcy must pass the Chapter 7 means test. In Chapter 13 bankruptcy, on the other hand, the means test has nothing to do with one’s eligibility to file Chapter 13; rather, the means test affects the Chapter 13 repayment plan. When the annualized gross income on the Chapter 13 means test exceeds the median income for the applicable household size, the debtor(s) must file a 60-month repayment plan, unless they can pay off all debts — including all unsecured debts — in less than 60…
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Budgeting Your Money During Chapter 13 Bankruptcy

A Chapter 13 bankruptcy is also known as a “wage planer’s” plan. It is ideal for people who can generally afford to make their mortgage and car payments, but may have fallen behind for a variety of reasons. Chapter 13 enables the debtor to keep his or her house and car, while developing a plan to repay debts. Developing a feasible plan to repay debts is the most important aspect of filing for a Chapter 13 bankruptcy, because this bankruptcy acts as a sort of consolidation loan. The debtor will make regular payments according to the repayment plan to his or her Chapter 13 trustee who then distributes payments to the debtor’s creditors. A Maryland or Washington DC bankruptcy attorney can help assess your situation and arrive at the optimal repayment plan for your needs. Budgeting Your Money During Chapter 13 Bankruptcy In order to successfully emerge from a Chapter…
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Deciding Whether to File for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy

Throughout the first two quarters of 2010, Maryland debtors and businesses have filed nearly 16,000 bankruptcies. And, continuing a trend that has lasted for several years now, more debtors have filed for bankruptcy than the quarter before. While, nationwide, most consumer debtors opt for a Chapter 7 bankruptcy versus a Chapter 13 one (approximately 75% choose Chapter 7), in Maryland, the breakdown is closer to fifty-fifty, with just slightly more choosing Chapter 7. A Chapter 7 bankruptcy is a liquidation bankruptcy. The debtor’s bankruptcy trustee takes control of any property of the debtor that is non-exempt and will sell that property and use the cash to pay off the debtor’s creditors. A Chapter 13 bankruptcy is a reorganization bankruptcy. Debtors filing under Chapter 13 work out a repayment plan to pay off their debts in three to five years. If you would like to learn more about whether a Chapter…
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