2. Filing a Chapter 13 bankruptcy because you would lose property in a Chapter 7 bankruptcy due to unprotected equity
You cannot be required to turn over property in a Chapter 13 bankruptcy (except for a tax refund). If there is too much unprotected equity in a piece of property and you would lose it in a Chapter 7, and you want to keep it, filing a Chapter 13 is an option. You would be able to keep the property and pay to the trustee in the Chapter 13 bankruptcy the amount that the creditors would have received in a Chapter 7. This is referred to as the Liquidation Test.
3. Filing a Chapter 13 bankruptcy because you are behind in your mortgage and want to keep the property
If you are behind in your mortgage, you can get caught up on the mortgage payments by curing the mortgage arrearages through the Chapter 13 plan. This would allow you to keep the property and prevent the mortgage company from taking it to a sheriff sale.
After the filing of the Chapter 13 bankruptcy, you would be required to make a monthly Chapter 13 plan payment to the Chapter 13 trustee. The monthly plan payment includes the amount needed to pay the mortgage arrearages plus the trustee and attorney fees. You would also have to resume making the regular mortgage payments and, depending upon which filing district you are in, these may have to be rolled into the total Chapter 13 plan payments.
4. Filing a Chapter 13 bankruptcy because you filed a Chapter 7 bankruptcy in the past 8 years
You may file a Chapter 13 bankruptcy within 4 years from the date that the prior Chapter 7 bankruptcy was filed and pay back a portion of your debt in the Chapter 13 bankruptcy. The remaining debt would be discharged in the bankruptcy.
5. Filing a Chapter 13 bankruptcy because you have a second mortgage on your home and the amount owed on the first mortgage is greater than the value of the property.
You can file a special action to strip the second mortgage in the Chapter 13 when the amount owed on the first mortgage is greater than the value of the property.
Other benefits to filing a Chapter 13 bankruptcy:
Under certain circumstances, you may be able to “cram down” the value of your vehicle in a Chapter 13 bankruptcy, paying for your vehicle in the plan at its fair market value. It may also be possible to substantially reduce the interest rate.
Attorney Mary Lou Burns will work closely with you to create a plan that meets your objectives, seeking to obtain the most favorable terms. She will remain involved and active in your case, until you receive your discharge, answering your questions and addressing your concerns.
MARY LOU BURNS
Attorney Mary Lou Burns is passionate about helping people during a difficult period in their lives. She believes in treating her clients with dignity, respect & compassion throughout the process. Mary Lou gives each case the personal attention to detail it deserves, helping Clients get their financial fresh start for 20 years. Attorney Mary Lou serves the Greater Akron & Canton area, including Medina, Portage, And Wayne Counties.