episode 13 Bankruptcy - motion To Keep family Home, Vehicles, Household Goods

What do you want of Home Loans After Bankruptcy ?.

Once loan modification or note workout fails, and the homeowner wants to keep the family home, someone else alternative is to file a lesson 13 bankruptcy motion to avoid foreclosure.

Indeed, foreclosure is reportedly soaring; and the filing of a lesson 13 bankruptcy motion results in automated stay of: (1) any operation against the debtor or the debtor's property to regain sums owed to creditors, (2) any compulsion of judgment against the debtor, and (3) repossession or foreclosure on any property of the debtor.

Home Loans After Bankruptcy

This statutory injunction implemented by the Bankruptcy Code, 11 Usc §362(a), is certainly one of the most grand tools ready to a debtor. It holds creditors at bay while the debtor reorganizes in a lesson 13 petition.

More importantly, the family home can be saved from foreclosure without a mountainous cash payment, which cannot be done in a lesson 7 petition.

Moreover, automobiles and household appliances and goods can be saved from repossession; and interest rate and even the equilibrium on some buyer debts can be reduced in a lesson 13 petition.

Thus, the great benefit of a lesson 13 motion is discharge from debts without losing nonexempt property, in case,granted the debtor pays creditors not less than the value of nonexempt assets the debtor is retaining, according to a confirmed repayment plan not to exceed five (5) years.

Threshold Requirements Of A lesson 13 Petition:

A._ estimate of Debts:

As a form of buyer reorganization, a lesson 13 motion is ready only to individuals with less than 6,900.00 of noncontingent, liquidated, unsecured debts, and less than ,010,650.00 of noncontingent, liquidated, secured debts, pursuant to 11 Usc §109(e), as adjusted every three (3) years according to the buyer Price Index.

B. Quarterly Income:

The debtor has to have Quarterly (gross) income, at the start of the case and over the next 3 to 5 years, depending on the period of the plan, all the disposable quantum of which should be dedicated to repay creditors according to the repayment plan. Disposable income is current monthly income less: (1) estimate critical for the maintenance or hold of the debtor or a dependent of the debtor, (2) charitable contributions not exceeding 15 percent of the gross yearly income, and (3) estimate critical for execution of the business, if the debtor is engaged in it, under 11 Usc §1325(b)(2).

C. Prior Bankruptcy Petition:

If the debtor had filed a lesson 7 motion and obtained a discharge while the 4-year period preceding the filing of a later lesson 13 case, or obtained a discharge in a old lesson 13 while the 2-year period preceding the filing of a later lesson 13 case, the debtor will not be eligible for someone else discharge in a later lesson 13 case.

This prohibition in 11 Usc §1328(f), added by the Bankruptcy Abuse prevention and buyer protection Act of 2005 (Bapcpa), seeks to put an end to the so-called, "Chapter 20," that is, filing a lesson 13 after a lesson 7 to regain discharge for debts that had survived the lesson 7 discharge.

If a prior lesson 13 motion was dismissed with prejudice to refile someone else case for 180 days, no case can be refiled within the 180-day period.

D. Prestige Counseling Briefing:

Lastly, the lesson 13 debtor must have received a Prestige counseling briefing from an popular ,favorite group while the 180 days preceding the filing of the petition, under 11 Usc §109(h)(1).

Exigent circumstances may merit an postponement for 30 days and someone else 15 days, if granted by the Bankruptcy Court for cause, under 11 Usc §109(h)(3).

Credit counseling is ready from popular ,favorite Prestige counseling agencies from the U.S. Trustee Program's website, for the debtor over the internet, in person, or by telephone. The filing fee plus miscellaneous administrative fee for a lesson 13 motion is 5.00 plus .00 equals 4.00.

Chapter 13 repayment Plan Within 15 Days After Filing Of Petition:

A lesson 13 debtor is required to file a repayment plan for the commitment period, pursuant to 11 Usc §1321. The commitment period is carefully under the "means test" applicable under lesson 7 petition. If the debtor's current monthly income multiplied by 12 is less than the applicable state average income for the debtor's household, the plan may not exceed three (3) years, unless a longer period not to exceed 5 years is popular ,favorite for cause by the Bankruptcy Judge, under 11 Usc §1322(d)(2).

A. Cost In Full Of Secured Claims:

A lesson 13 debtor must pay in full secured claims (home mortgage loans, car loans, and financings of household goods with purchase money protection interests) plus interest, and the pre-petition arrears thereon can.be cured with Cost of interest at an thorough rate through the plan. As to real estate claims, the lesson 13 plan commonly requires the debtor to make the Quarterly monthly mortgage payments directly to the creditor.

Claims not secured by the debtor's critical residence, such as personal property-secured claims, may be divided into the secured quantum (replacement value) which must be paid in full with interest and the unsecured equilibrium which may be paid from 0 to 100 percent without interest under the plan for unsecured claims.

B. Cost Of normal Unsecured Claims:

Unsecured nonpriority claims (priority claims are domestic hold claims, administrative claims [debtor's attorney's fee and lesson 13 trustee's fee], and priority tax claims) must be paid under a lesson 13 plan at least what they would be paid in a lesson 7 case.

These claims contain Prestige card debts, judgments debts without lien filings, signature loans, and the unsecured quantum of determined secured claims. The amounts to be paid to unsecured creditors may be a determined division (such as 100%, 70%, 0%, etc.) of the claims' amounts, or pro rata from ready funds, after Cost of the allowed secured and priority claims.

C. Introductory Plan Payment:

Initial payments under the lesson 13 plan must be made not later than thirty (30) days after the filing of the plan or the filing of the petition, whichever is earlier, unless otherwise ordered by the Bankruptcy Court, under 11 Usc §1326(a)(1).

The debtor is required to make direct payments to secured creditors until confirmation of the plan, unless the Bankruptcy Court orders otherwise. Most lesson 13 trustees will accept cashier's checks or money orders, as disbursement agents for the debtors' estates, development disbursements once a month.

D. Confirmation Of The Plan:

Creditors and the lesson 13 trustee recap the plan and supporting documentation. They may object to the plan, accompanied by a motion to dismiss, if the requirements of 11 Usc §1325(a) are not complied with.

If no objections are presented or the objections are overruled, the plan will be confirmed by the Bankruptcy Court in a confirmation hearing held not earlier than twenty (20) days and not later than forty-five (45) days after the date of the Section 341(a) meeting of creditors conducted by the trustee.

(The Author, Roman P. Mosqueda, has practiced bankruptcy law for more than fifteen (15) years, representing debtors, creditors, and trustees.)

episode 13 Bankruptcy - motion To Keep family Home, Vehicles, Household Goods