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What will happen where Chapter 13 bankruptcy is dismissed due to default in payments?
Wiki User
∙ 14y ago
Many people are unable to maintain the rigid repayment plans (and strict budget) that go along with Chapter 13 bankruptcy. One option is to switch to Chapter 7 bankruptcy. This can be done (one time) without court approval, although if you ever wish to switch back to Chapter 13 then the court will be involved. Before switching I would recommend looking at the different characteristics of each type of bankruptcy.
Wiki User
∙ 14y ago
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Filing a Chapter 7 with 2 payments owing on your car how long do you have in getting it current before the creditor can take it if you plan on curing the default 30 days after filing?
When you file a Chapter 7 bankruptcy, you have the option to keep your home and 1 vehicle. If you are able to make the last 2 payments on the car, you can keep it and not include it in the bankruptcy.
Can you file for chapter 7 bankruptcy after a bankruptcy default?
If have you have a prior bankruptcy default, there may be certain restrictions on future chapter 7 filing. If you have been discharged in a Chapter 12 or Chapter 13 bankruptcy by paying at least 70% of the unsecured debts, you must wait for 6 years before filing a Chapter 7. If your Chapter 7 was dismissed and you file another Chapter 7 within 1 year, then the automatic stay will terminate within 30 days unless you demonstrate that your prior Chapter 7 filing was made in good faith. You must wait for 180 days if your bankruptcy petition was dismissed for failure to comply with a court order or was dismissed on your request to be eligible to file a Chapter 7 petition once again. Legal Disclaimer: The answer above should not be relied upon as legal advice. The information provided above is based on insufficient facts and only speaks to a general opinion based on those insufficient facts. No warranty is provided that the answer is correct. No attorney-client relationship has been formed with me until a signed written contract is complete. For an official opinion, it is advised you seek legal counsel.
Can the debtor file for bankruptcy after a creditor is awarded a default judgment because the debtor did not make a court appearance?
Yes, most judgments can be discharged in a chapter 7 bankruptcy.
Chapter 13 FAQ?
Since 2008, more people have been laid off than any other time since the Great Depression. If you have been laid off or just can't make ends meet, your credit may suffer. When debt mounts and you can no longer pay your bills, you might consider filing for a chapter 13 bankruptcy. Chapter 13 bankruptcy allows you to bundle your payments into one monthly lump sum payment and continue these payments for five years. The amount that you pay depends on your disposable income, as determined by the budget that you submit to your lawyer and the court. After five years, your debt is discharged. There are several advantages to a chapter 13 bankruptcy. First, many people do not qualify for a chapter 7 bankruptcy. If you make more than the median household income for your family size in your county, you will not be permitted to file for a chapter 7 under most circumstances. In contrast, anyone can file a chapter 13 bankruptcy as long as they can demonstrate that their debts outstrip their income. In addition, most of your assets are protected with a chapter 13 bankruptcy. As long as your home or vehicle payments are not in default, you can keep them, including a certain amount of equity in your home as determined by your state. Your assets are safe as long as you make the minimum payments. Creditors will be ordered by the court to not contact you in an attempt to collect payment. Chapter 13 bankruptcy is not a cure-all for all for all your debt woes, however. You cannot default on your federal or private student loans, for example. In addition, if you have any co-signers on your debt, the creditors may pursue them for the payments and their credit will be affected if they cannot make the payments for you. Further, the bankruptcy remains on your credit record for seven years after the discharge. Because you must make payments for 5 years before the debt is discharged, your credit will be negatively affected for a total of 12 years. While you can file bankruptcy on your own in many states, you should consider hiring an experienced bankruptcy lawyer. Your lawyer knows the ins and outs of the bankruptcy process in your state and she can help you save time and effort with the court proceedings. In addition, many lawyers offer a free consultation.
What is a default letter and an order of consent in relation to bankruptcy?
A default letter is a letter to say you have defaulted on a specific loan or obligation. Meaning you have not been making the payments needed. An order of consent is a document that is created of an agreement between you and company you have defaulted on payments.
Do you have to declare bankruptcy if you default on your mortgage?
No. If you default on your mortgage the lender will take possession of the property by foreclosure. Whether you file bankruptcy is an unrelated issue.No. If you default on your mortgage the lender will take possession of the property by foreclosure. Whether you file bankruptcy is an unrelated issue.No. If you default on your mortgage the lender will take possession of the property by foreclosure. Whether you file bankruptcy is an unrelated issue.No. If you default on your mortgage the lender will take possession of the property by foreclosure. Whether you file bankruptcy is an unrelated issue.
If I own a home with a co signer and file a chapter 7 will their credit be affected?
If the mortgage payments are still being made then no - they won't be, however - if you default on the mortgage payments then yes - they will go after the cosigner and if it is not paid their credit will be effected.
If you're buying your home which is not in default but you file bankruptcy on all your other debt would you be allowed to keep making the payments and keep the property or do you have to claim it?
You may have to make reaffirmation to the mortgage holder.
Will bankruptcy payment be lowered when house payment is out of default?
Yes. in support with your bankruptcy lawyers experts.
When can you file for a chapter 13?
Any time the Federal Bankruptcy courts are open...which is basically any business day.Under the bankruptcy laws effective on October 17, 2005, Chapter 7 cannot be filed unless the debtor was discharged from the previous Chapter 7 or bankruptcy more than eight years ago. The debtor cannot file a Chapter 13 unless: (1) the debtor received a discharge under Chapter 7, 11 or 12 more than four years ago; or (2) the debtor received a discharge under Chapter 13 more than two years ago.
Can you file for bankruptcy and not default on a title loan?
Yes. With the lender's permission, you can reaffirm the loan at the time your bankruptcy is executed.
Does default means does not pay?
Default means that you have not made the agreed-upon payments in full on time. You may be making partial payments (ie, paying $250 a month instead of $350 a month), but still be in default.
