Unless you are in the business of lending money to others, most of you might not think there is such a thing as a best interest of creditors, even when it comes to bankruptcy. The truth is that bankruptcy laws have been passed to make a level playing field for both creditors and debtors. Therefore, there is actually a bankruptcy law that looks after the best interest of creditors in the bankruptcy process. (more…)

A chapter 13 bankruptcy is for wage earners who make a reorganization plan of their existing disposable income to fund payments over a 3 or 5 years to pay off all or a part of their unsecured debts. Under funding in a chapter 13 bankruptcy plan is more common than one might think. (more…)

Overall in 2012, bankruptcy filings are down a little over 14% across the nation, while chapter 13 bankruptcy filings are up. (more…)

One California debtor recently blogged his bankruptcy story over a bankruptcy website. The debtor has fallen on hard times due to a cocaine addiction, but rehab has given him a fresh new start. He lost his job and now makes 1/3 of his former salary. He owes unsecured creditors $90,000 and the IRS $35,000 in back taxes. His assets include a home with about $100,000 to $150,000 equity. He is being totally overwhelmed with collector calls, can only pay for food and mortgage payments, and wants to know what to do. (more…)

Repo-man is slang for a collection’s company representative who repossesses property for a creditor. The creditor must be using the property as security for a financial credit instrument. A creditor has the property of a debtor repossessed by a repo-man when a debtor defaults on a secured note. After repossession, the property is normally sold for its current value to recover the amount owed the creditor. If the amount obtained is less than the amount owed the creditor, the difference is called a deficiency. (more…)

During a recent blog on a bankruptcy forum website, one debtor raised the question of whether or not you should try to obtain a secured credit card account during the process of a chapter 13 bankruptcy. (more…)

Understanding the chapter 13 bankruptcy payment plan is complicated not only for first time bankruptcy filers, but it can be complicated for bankruptcy attorneys as well. This article is an attempt to help first time filers better understand the chapter 13 bankruptcy payment plan. (more…)

Timing can sometimes be everything when filing a chapter 13 bankruptcy. Therefore, making timely decisions in a chapter 13 bankruptcy can be very important to a filer. (more…)

In a case filed before the Bankruptcy District Court of Rhode Island in January of 2013, Maribeth Cobb, a debtor, won her appeals case against the U.S. Trustee that filed an objection to the Chapter 13 plan she had made in the same court. This case illustrates how debtors sometimes win bankruptcy cases too. (more…)

Recently on a bankruptcy forum website, a Chapter 13 bankruptcy filer wanted to know how the second mortgage would be handled in the plan. Her question was, “Will the second mortgage be turned into an unsecured loan that I have to pay off through my repayment plan or will it just be eliminated with the first mortgage?” (more…)