What Are the Main Differences Between Chapter 7 and Chapter 13 Bankruptcy

Chapter 7 is called “liquidation” bankruptcy because filers may lose some of their property, with some important exceptions. Chapter 7 is reserved for individuals and businesses with little or no ability to repay debts in the future. So those who file Chapter 7 may lose non-exempt assets in exchange for having most debts erased. Chapter 13 is called “reorganization” bankruptcy because it allows consumers to reorganize their debt burdens and payment schedules. Anyone filing for Chapter 13 must also propose a repayment plan showing your income and how you will pay off your debts. Working with the court, your plan 

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Erasing a 2nd Mortgage in Chapter 13 Bankruptcy

The right to erase a 2nd mortgage in bankruptcy is the greatest power afforded to a debtor under the bankruptcy laws. A debtor is not allowed to touch the 1st mortgage on their home but they are allowed to erase the 2nd mortgage on their home if their house is underwater and there’s no equity attaching to the 2nd mortgage. Let me explain – let’s say your house is worth $200,000 and your 1st mortgage is $210,000 and your 2nd mortgage is $50,000. Under the bankruptcy laws, you are allowed to erase that 2nd mortgage in this example because no 

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Chapter 13 (Reorganization)

In a chapter 13 case you file a “plan” showing how you will pay off some of your past-due and current debts over three to five years. The most important thing about a chapter 13 case is that it will allow you to keep valuable property–especially your home and car– which might otherwise be lost, if you can make the payments which the bankruptcy law requires to be made to your creditors. In most cases, these payments will be at least as much as your regular monthly payments on your mortgage or car loan, with some extra payment to get 

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The Benefits of Chapter 13 Bankruptcy

The Benefits of Chapter 13 Bankruptcy Chapter 13 bankruptcy is one of the best financial tools available to prevent serious financial trouble before it starts. Chapter 13 bankruptcy stops foreclosure; cancels sheriff sales; keeps the IRS at bay; stops the IRS from intercepting your tax refund; and stops repossession of your car. How does it work? Simple. We add up all your debt that needs to be repaid to your creditors and divide it by 36 months or 60 months. In other words, you propose a Chapter 13 repayment plan for 3 or 5 years. Here is an example – 

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Can filing bankruptcy get you out of jail for failing to pay alimony?

A recent case before the United States Appellate Panel of the First Circuit (In re DeSouza, 493 BR 669 – Bankr. Appellate Panel, 1st Circuit 2013) addressed whether a family court judge could legally order a debtor to be in contempt for failing to pay alimony during a pending chapter 13 bankruptcy. The debtor filed a petition under chapter 13 of the Bankruptcy Code in January 2011. In June 2011, the debtor’s spouse filed a complaint for divorce. After a hearing on September 30, 2011, the probate court entered an order granting alimony to the debtor’s spouse in the amount 

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Reversing a Sheriff’s Tax Sale

On September 19, 2012, the Philadelphia Sheriff’s Office conducted a tax sale to collect unpaid taxes on Otis W. Terry, Jr.’s property located in Philadelphia, Pennsylvania. The property was purchased by a bidder for $120,000. A fraction of the fair market value of $450,000. On December 11, 2012, the Philadelphia Sheriff’s Office signed and delivered a deed evidencing the transfer of the Property to the bidder (the “Tax Deed”). The Tax Deed evidencing the sale was recorded on January 5, 2013. On June 13, 2013, Otis W. Terry, Jr. filed a Chapter 13 bankruptcy case to reclaim his property and 

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Reversing a Sheriff Sale in Philadelphia

Pennsylvania homeowners have the right to “cure” a mortgage loan (i.e., pay off all arrears and reinstate the loan) up to one hour before the Sheriff Sale. (41 Pennsylvania Statutes Section 404). Pennsylvania Law first created a statutory right to cure a mortgage default in 1974 by establishing Act 6, also known as the Loan Interest and Protection Law. By “cure,” the statute means a restoration of the mortgage “to the same position as if the default had not occurred.” Act 6 established the right to cure defaults up until one hour before a sheriff sale. (41 P.S. Section 404). 

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You Deserve a Fresh Start in 2014

The New Year is a good time to evaluate your financial house and consider whether getting a fresh start by filing bankruptcy is the best option for you. If you have too much debt or feel like you are way over you head in bills, bankruptcy may be right solution for you to get a fresh financial start in 2014. Bankruptcy wipes out all credit card bills, medical bills, and personal loans. It even erases deficiencies on short sales and repossessed vehicles. Filing bankruptcy initiates a Court ordered “automatic stay.” The automatic stay immediately stops your creditors from trying to 

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Discharging Cyber Monday Purchases in Bankruptcy

Thanksgiving and Black Friday shopping brought in an estimated $12.3 billion in sales, according to shopping analytics firm ShopperTrak. Overall spending was expected to reach $57.4 billion for the weekend, according to the National Retail Federation. Can You Discharge Recent Shopping Purchases in Bankruptcy? The best advice is to consider limiting your shopping to a minimum to avoid any problems with your upcoming chapter 7 bankruptcy case. There are also a few guideposts to consider contained within the bankruptcy code itself: 1. Cash advances in excess of $875.00 within seventy (70) days of the bankruptcy filing, are nondischargeable. 2. Purchases 

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Is Bankruptcy the Right Choice for You?

1. Bankruptcy may be the easiest and fastest way to deal with all types of debt problems. Bankruptcy is a process under federal law designed to help people and businesses get protection from their creditors. 2. Most bankruptcy cases are complicated. You should consider getting professional help. Bankruptcy is a legal proceeding with complicated rules and paperwork. You may want to get professional legal help, especially if you hope to use bankruptcy to prevent foreclosure or repossession. Dunne Law Offices, P.C. provides a free consultation to help you decide whether bankruptcy is the right choice. 3. Bankruptcy temporarily stops almost 

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