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
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).
If your late on your mortgage and you have substantial mortgage arrears then chapter 13 bankruptcy is the best method to straighten out your financial house. A chapter 13 repayment plan allows you to pay back your mortgage arrears in 36 – 60 months. A chapter 13 plan erases the pending foreclosure, removes the mortgage loan default and makes the mortgage loan current. If your house is under water, a chapter 13 bankruptcy also allows you to erase that second mortgage, even a third mortgage by reducing the creditors claim to the value of the collateral. For example: House: fair
Foreclosure is a harsh legal process and, when you are threatened with foreclosure, you should immediately try to obtain legal help. Foreclosure can move very quickly. One advantage of exercising your legal rights is that you can slow down the process. In the short term, delay can be helpful because it will give you more time to put into place a long-term solution to the problem. You cannot properly delay foreclosure just because you need more time. The actions you take must be based on some underlying legal claim or defense which is raised in good faith. Procedural Defenses May
A chapter 13 bankruptcy is also called a wage earner’s plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Generally, chapter 13 is preferred by debtors who have a valuable asset, such as a home, that is not completely covered by exemptions and that they wish to keep. Since the debtors plan will require regular monthly or biweekly payments, Chapter 13 is usually only appropriate for an individual debtor who has a
Bankruptcy is intended to give people a fresh start – free of debt. The bankruptcy laws provide an opportunity for a fresh start to those individuals whose financial difficulties have left them unable to pay their bills and have put them at risk of losing their house, cars, or other property. Why do people file bankruptcy in Pennsylvania? In my experience as a bankruptcy lawyer, these are some common scenarios: You are trying to keep debts current but are borrowing money from one card to pay another (robbing Peter to pay Paul). You are trying to keep debts current by
Chapter 7 and Chapter 13 are two different kinds of bankruptcies available to individuals, some businesses, and married couples with financial problems. A straight liquidation bankruptcy, known as a Chapter 7 bankruptcy, involves the filing of a bankruptcy petition and statement of all property, debts, and budget information. The filing of the petition stops all creditor action against the Chapter 7 debtors and their property, including mortgage foreclosure, sheriffs sale, utility shut-offs, and other creditor harassment. Chapter 7 debtors can generally keep all their personal property, but debtors can keep their home and cars only if arrangements are made separately
The bankruptcy laws provide an opportunity for a fresh start to those individuals whose financial difficulties have left them unable to pay their bills and have put them at risk of losing their house, cars, or other property. Bankruptcy is a complex area of the law, and requires the services of an attorney experienced and specialized in bankruptcy law to provide you with an in-depth analysis of your situation and to give you legal advice and representation you can trust to protect your assets and discharge your debts. In the United States, the two most common forms of bankruptcy available