When a debtor files bankruptcy they must notify certain parties. These parties are the same in every Chapter 7 and Chapter 13 cases. All creditors receive notice of the bankruptcy filing. This includes secured lenders like mortgage lenders, auto loan creditors, and property taxing authorities. Unsecured creditors also receive notice of the bankruptcy filing. Unsecured… Read More »
When a homeowner is behind on their mortgage payment, they may be able to cure their mortgage arrears through a loan modification or by filing Chapter 13 bankruptcy. Which is the better choice depends on the homeowner’s specific situation. In analyzing this type of situation I begin with the interest rate on the existing mortgage.… Read More »
Secured and priority creditors are often provided interest on claims paid in Chapter 13 plans. In fact, in Texas some of these interest rates are set by statute. Claims for child support arrears receive 6% interest. Claims for unpaid property taxes are entitled to 12% interest. However, determining whether claims for mortgage arrears receive interest… Read More »
The ultimate goal of most bankruptcy cases is to receive a discharge. A discharge is the result of an order signed by a bankruptcy judge which shields the debtor from future attempts to collect debt. The bankruptcy judge signs this order at the very end of the bankruptcy case. In Chapter 7 cases the order… Read More »
Even the sick and mentally impaired must filed bankruptcy sometimes. Being without legal capacity does not prevent a debtor from obtaining bankruptcy relief, but it does create challenges not present in cases where the debtor isn’t impaired. According to The Bankruptcy Code, “incapacity” means a debtor is “impaired by reason of mental illness or mental… Read More »