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We gave the attorney 1750 to file our ch 13 bankruptcy and he filed it although he told us a week later that we were over the secured asset limit so it had to dismiss?
Wiki User
∙ 16y ago
I agree, presuming you provded him with the info before he said he would work on your behalf, he should have advised you that you didn't qualify. However, if you said, we want you to file BK for us...and he started working fo you and the information you provided then showed it couldn't be done...he isn't totally to blame. Especially as the limit is high enough, it's not what most would expect to be dealing with. The fact is, that BK allows about 1.3 million of debt...if your playing in that world of just debt...well 1700+ bucks to someone you hire and spends time, even if trying and finding that you don't qualify, deserves pay. And for players like you a fee that small shouldn't be worth your time caring about too much....gee, at 8% simple interest, (and you would expect to pay a higher percent and compounded), would be over $100,000 a year you would have to KNOW you promised people in interest alone already! (And if you haven't figured it out yet...to amortize 1.3M over 30 years of Monthly payments (YES PAY BACK WHAT YOU PROMISED TO, OVER 30 YEARS, not just the few you would in BK), will require at @8% interest (and your probably way higher than that), about $9,500 a month. No, he didn't cause you your problems. They are much greater than $1750.
On April 1, 2007, the debt ceiling for 13 increased to $336,900 for unsecured debts and $1,010,650 for secured debts. I also find it interesting that the Bankruptcy Code recognizes that consumer debt can easily exceed $1.3 million. If you begin to sense that you have lost or are losing control of your debt, seek legal help sooner rather than later.
Wiki User
∙ 16y ago
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Will you own your house after chapter 13?
You should consult a qualified bankruptcy attorney in your area as laws from state to state, and the federal courts in your area may have a take on something that the bankruptcy attorney would be aware of. Your home likely has a secured mortgage or loan that you used to purchase the house. This is a debt secured by the property and therefore will need to be paid to continue to keep the house. However, bankruptcy law can be complicated and you absolutely need to consult with an attorney. It is highly likely that there are nuisances and protections regarding your home and the debt on it that would be benficial to know prior to making a decision to file for bankruptcy and the attorney may have other ideas other than bankruptcy that you find more to your benefit.
Who gets paid last in a Chapter 13 Bankruptcy?
In a Chapter 13 Bankruptcy who gets paid last? Creditors, Trustee, their attorney or their lender? ALL ADMINISTRATIVE COSTS - TRUSTEE, ATTORNEY ARE PAID FIRST - BEFORE ANYTHING ELSE. The others sort of depend...a lender is a creditor...if a secured lender...probably before any other.
You gave the attorney 1750 to file your ch 13 bankruptcy He filed it although he told us a week later that you were over the secured asset limit and that you'd have to allow the BR to dismiss and then?
Your attorney should have caught that before filing. The preferred way is see what the attorney has to say about other alternatives. Have them apply some of the charge for the bankruptcy to the new avenue. Otherwise, talk to them about it and say you want some money back. Threaten to file a grievance with the Bar association. Do NOT expect to get all or most of it back. The attorney spent time counseling you and preparing your petitions... both of these would have had to have happened anyways for them to determine your situation. Figure an hour of consultation or so plus 2+ hours to prepare the petition (3 hrs total x $250 = $750 - $1000 reasonable charges) There may be additional time spent as well since it sounds like yours may have been a complex filing. Speak with an attorney about your specific situation. If you can not find an attorney, contact your local Bar association and they will refer you to one.
What happens when a creditor doesn't file a proof of claim in a bankruptcy case?
If it is not a secured debt it will be included in the bankruptcy discharge.
Is a car secured property in bankruptcy?
If there is a loan which used the car as collateral, yes.
Can you keep your cars in a chapter 7 bankruptcy?
Yes, you can keep you car in chapter 7 bankruptcy. In Chapter 7 bankruptcy there are some rules. You can only file Chapter 7 if your income is below your state's median or is not enough to pay off your current debt.
If credit card puts lien on house and i file bankruptcy can i still file the credit card in the bankruptcy?
You have to, it is a debt...it is just a secured debt...by the lien on the property.
When a debtor enters bankruptcy a secured creator retains priority to the secured assets unless it files a proof of claim for the full amount owed?
Actually, a secured creditor only retains priority if they file a claim.
If you file chapter 7 can you keep your secured debt?
You may be able to keep some or even all of your secured debt. Simply reaffirm at the time you file, or it can be done as an addendum later. Your attorney will be familiar with the process. Keep in mind that the additional debt you keep may make it difficult or impossible to continue with the bankruptcy. Consider this as you decide what to reaffirm and what to surrender.
What is an unsecured loan used for?
The difference between an unsecured loan and a secured loan is very big if for some reason bankruptcy is declared or the loan cannot pay repaid. Secured means that the buyer still needs to repay and unsecured mean he doesn't if bankruptcy is declared.
When filing bankruptcy which chapter eliminates all debt?
It depends. Most any of the types can, or may not. Some considerations are if your speaking of a business (Corporation) or personal bankruptcy, if the debts are secured or not, and how much of what type of assets there are and if any of them are to be maintained after the bankruptcy as determined by the Court and creditors. There is no personal bankruptcy where secured debts or other obligations such as child support arrearages. A chapter 7 is a total liquidation bankruptcy in which the debtor can discharge all debts that are not secured including judgments, liens that have not been "perfected", stop wage garnishment, etc. The petitioner will however be required to relinquish all non exempted property.
Do you have to get full auto coverage if you file bankruptcy?
If you're auto payment is included in your bankruptcy, then yes, they will require you to keep full coverage as long as there is a secured balance on the vehicle.
