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Maybe. A chapter 13 is a repayment plan and in some instances will not affect the terms of the lender and borrower contract.

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โˆ™ 2006-08-29 02:29:21
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Q: During a chapter 13 bankruptcy can creditors charge unpaid late charges?
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Related Questions

What are the difference between Chapter 7 vs Chapter 11?

The difference between Chapter 7 bankruptcy and Chapter 11 bankruptcy is what happens to a party during the process. Parties undergoing chapter 7 bankruptcy must sell of their assets in an attempt to pay off dept. Chapter 11 allows for one to attempt to maintain their assets. During chapter 11 bankruptcy the party must negotiate with creditors to stay afloat.

Will chapter 7 bankruptcy stop a foreclosure in California?

Yes, temporarily. Filing for bankruptcy protects your from collection actions taken by your creditors, including foreclosure during the proceedings.

What is filing bankruptcy?

Bankruptcy is a legal tool individuals and companies use when they are no longer able to repay debits. In the United States their are two sorts of personal bankruptcy. 1) Chapter 13 Bankruptcy, or reorganization Bankruptcy lets an individual work with their creditors to pay back debts without the threat of foreclosure or harassment. This lets someone do the right thing and pay people back. 2) Chapter 7 Bankruptcy is a more extreme step. During Chapter 7 one continues to make essential payments while paying nothing to other creditors. Next, all assets are liquidated and distributed to creditors.

What does bankruptcy do to you?

Personal bankruptcy can do two things. 1) Chapter 13 Bankruptcy, or reorganization Bankruptcy lets an individual work with their creditors to pay back debts without the threat of foreclosure or harassment. This lets someone do the right thing and pay people back. 2) Chapter 7 Bankruptcy is a more extreme step. During Chapter 7 one continues to make essential payments while paying nothing to other creditors. Next, all assets are liquidated and distributed to creditors. Bankruptcy is the really last resort and only you know whether you go to this route. I have filed bankruptcy and it worked well because of the help from the financial advices. It is really important to seek an advice before making decisions.

Can should your spouse get a job after filing bankruptcy chapter 7 but before the meeting of creditors?

You can switch jobs at any time during bankruptcy. The tax returns for the previous year are usually used when figuring income in bankruptcy. It is doubtful the new income would be a factor.

How likely is it that the court will approve the purchase of a new home during a chapter 13 bankruptcy?

It depends on how the home purchase will impact your creditors. If you you payment will be doing up, then you will have less money paid to your creditors under the Chapter 13 plan. On the other hand, you might get approval if the purchase won't lower the amount of money creditors would receive under the plan.

Can you get married during a chapter 7 bankruptcy?


During chapter 7 can the creditors take your house in South America that you bought for 20k?

No, the creditors can't take the South America property. But, the Bankruptcy trustee can. The only exemption for real property is a homestead exemption and obviously your homestead cannot be in South America if you are filing bankruptcy in the US. So this property would be taken by the trustee and liquidated to pay your creditors. Directly the creditors can't take the property. Failing to list this property (Hey, it is in South America, how will they know????") can lead to charges of Bankruptcy fraud if found out. It is possible that the trustee would allow you to make a monetary offer to keep the property, especially as selling a foreign property is not easy. You would have to provide a valuation of the property proving the value to the trustee.

Can college debt be included in a bankruptcy?

No. Educational loans will remain with your during and after the bankruptcy is completed. This holds true regardless of whether you decide to file for Chapter 7 or Chapter 13 bankruptcy.

Can you refinance during chapter 13?

While participating in a Chapter 13 bankruptcy, no major financial transactions are allowed w/o the permisson of the bankruptcy trustee.

When you go bankruptcy do you have to put up your house for collatoral?

In most cases you will not lose your home during your bankruptcy case as long as your equity in the property is fully exempt. Even if your property is not fully exempt, you will be able to keep it, if you pay its non-exempt value to creditors in chapter 13.

Will you get your tax refund if you file for bankruptcy?

Whether you are entitled to your tax refund will depend on what type of Chapter of bankruptcy you are filing and whether the bankruptcy exemptions can be used to protect the tax refund. If you are filing for Chapter 7 bankruptcy then you can generally keep the refund if the available state bankruptcy exemptions provide protection for it. If you are in a Chapter 13 bankruptcy you are typically required to turn over the tax refunds during the life of the Chapter 13 case.

Can they repo your car if there is a open chapter 7 bankruptcy?

NO collection activity may occur legally during bankruptcy proceedings.

Do creditors get money from settlement if no claim was filed during bankruptcy?

They would legitimately be entitled to be a party to the settlement but would need to apply to the bankruptcy administrator for consideration in this instance.

Can traffic tickets be filed in a Chapter 7 Bankruptcy?

Fines for violating the law, such as traffic tickets and judgments, fall under the category of nondischargeable debts in any bankruptcy proceeding and will stay with you during and after your your chapter 7 bankruptcy.

How does filing bankruptcy affect your inheritance?

In any chapter of Bankruptcy, you have to list with the courts any assets or incomes, before and during the bankruptcy. So, if you are scheduled to receive any type of inheritance during the bankruptcy, you have to inform them of this asset. I know with Chapter 7, you are allowed a level of value for a home and also income. Over and above those levels, the court might take these assets, which might just be your inheritance monies. And with Chapter 11, your income and assets come into play upon paying back your creditors. So, I would definatly think they would take into consideration these new monies you would receive through your inheritance.

Does interest owed to the Internal Revenue Service stop accruing during Chapter 13 bankruptcy?

Typically a Chapter 13 bankruptcy will require you to enter into a payment plan with the IRS, and interest will be frozen as of the date that you file your bankruptcy petition.

How can one get a loan if they have declared bankruptcy?

Getting a loan after bankruptcy can be difficult depending on what type of bankruptcy one files. A Chapter 13 bankruptcy, one cannot even apply for credit during the length of the bankruptcy. In a Chapter 7 bankruptcy, that is a different story. One can file Chapter 7 bankruptcy and as soon as it is discharged can apply for credit. The only problem with getting a loan after bankruptcy is that you may have to have a co-signer until you build up some positive credit.

Can you but a car before filing bankruptcy?

Sure if you can find someone who will give you credit. If you pay cash the judge might make you sell it during bankruptcy to satisfy other unpaid creditors.

What is a Chapter 11 Lawyer?

A Chapter 11 lawyer is an attorney with a specialization in Chapter 11 bankruptcy. This is a specific type of bankruptcy that applies within the jurisdiction of the United States of America. It explains how reorganization can take place when filing for bankruptcy. This type of bankruptcy can be taken advantage of either by individuals or by business entities, but it is generally used by corporations. Chapter 11 is about reorganization, while Chapter 7 is about liquidating assets and Chapter 13 is about reorganization for individuals. Chapter 11 bankruptcy can not be undergone successfully without the aid of qualified professionals, and this is where the aid of a Chapter 11 attorney becomes necessary. When a business reaches the point where it can not pay off its debt on time, the business can file for bankruptcy in the federal courts with either Chapter 7 or Chapter 11. Under Chapter 7 bankruptcy, the business would sell off all of its assets and give the cash earned to its creditors. With Chapter 11, the debtor keeps ownership of the business, which undergoes reorganization. Chapter 11 allows a debtor to restructure their business in several ways. The court may allow former contracts to be canceled. They may be able to acquire loans by giving the new lenders highest priority with regard to the revenue of the business. Additional litigation against the business is prevented during bankruptcy court. If the debt of the company is greater than its value, the rights of the business will be transferred to the creditors. The amount of time that it takes for a Chapter 11 bankruptcy to be handled in the courts can last between a few months and a few years, depending on the complexity of the issue. For the first 120 days, the debtor has the right to propose plans for reorganization. After this time, creditors are also allowed to present plans. If a company owns stock which is traded publicly, Chapter 11 bankruptcy causes the stock to be delisted. In most cases, the stocks become useless. The reasoning behind Chapter 11 bankruptcy is the idea that businesses can provide more value when they are reorganized and distributed then when the individual parts are sold off as assets. By keeping the business running, canceling debts, and transferring ownership of the company, it is possible for more value to be transferred to the creditors than if the individual parts are sold. This can also prove more beneficial for the debtor as well.

If you filed a chapter 7 bankruptcy in mi and it is discharged how long do you have if you need to file an amendment?

If you filed a Chapter 7 bankruptcy in MI and it is discharged, you can amend whatever document you want at any time. It does not matter whether it is during the process of bankruptcy or after the discharge.

During chapter 7 will the creditors show up?

During your 341 hearing, creditors have the right to be present and examine you on several issues. In reality creditors rarely appear at these hearings. In most instances no creditor will appear unless they believe you are hiding assets or committing fraud.

Do you have to report an inheritance during a chapter 13 bankruptcy?

All income must be reported by law.

What can a trustee take during chapter 13 bankruptcy?

Money for your plan payment, tax refunds.

What happens to payments made to creditors during a Chapter 13 payment plan if you file for dismissal?

What do you think happens? The creditors have the money. They have to apply it to your debt balance, which will increase dramatically because they get to charge you for all the late fees, penalties and interest, not to mention any legal fees, that they could not add while you were in bankruptcy. I hope the dismissal was worth it.