Last March, in response to the COVID-19 pandemic, Congress passed the CARES Act which made many debtor friendly changes to the Bankruptcy Code. The CARES Act extends the allowable length of confirmed Chapter 13 plans to seven years. Currently, plans cannot run more than 5 years. LeRoy’s plan was confirmed prior to March 27, 2021, and he is experiencing a COVID-19-related hardship, so the CARES Act allows LeRoy to cure any arrears in his plan by modifying his plan up to 7 years. LeRoy can include his delinquent mortgage payments and delinquent trustee payments in his amended plan; save his
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
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
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
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
How to Save Your Home from Foreclosure Please tune into the Hope Matters Radio Show this weekend with James Hope on Saturday, August 2nd at 10.00 AM. Ways to Listen to Hope Matters Radio Radio: 990 AM WNTP Website: Hope Matters Radio Show iTunes Audio Podcast Mobile App: tunein Defensive Strategies to Save Your Home Make sure you’re doing everything possible to prevent losing your home to the bank. Step 1. Arrange a meeting with your lender as soon as you realize you’re having problems making your monthly mortgage payments. Discuss repayment plans that will allow you to stay
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).