Filing a petition for bankruptcy set in motion processes that may see some or all of your unsecured debts eliminated. Mortgages, whether first or second, are considered to be secured debts so in most cases they cannot be eliminated through bankruptcy. I say “in most cases” because there is one exception to this rule. If [...]
A Chapter 13 bankruptcy petition allows a debtor to submit a repayment plan that fully covers all secured loans. The trustee will do everything possible to ensure that the amount you pay each week, fortnight or month also covers part payments to your unsecured creditors. One difficulty that debtors face is not having sufficient funds [...]
Although bankruptcy is covered by federal legislation, there are local laws in each state that also need to be addressed. One of these covers what can and cannot be included in the exempt assets component of a bankruptcy petition. There are 16 states that allow petitioners (debtors) to select either state of federal law, the [...]
It’s an interesting expression – cram down, yet it is actually used in relation to a Chapter 13 Bankruptcy petition and a secured car loan. A Chapter 13 petition allows the debtor to propose a payment scheme that would pay off their debts over 3-5 years, particularly if some debts where discharged. Car loans are [...]
