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Law Office of 
Charles E. Andersen

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Chapter 13 is a means by which an individual overwhelmed with debt.. can remain in control of her personal financial affairs and repay her debts while keeping her property

 

 

 

 

 

 

 

 

A Chapter 13 plan must be proposed in good faith

 

Bifurcation of home mortgage: Although not all bankruptcy courts agree, the prevailing view at the appellate level is that the unsecured portion of an under-secured mortgage can be modified, since the mortgage is bifurcated [B.C. 506(a)] and only the secured claim is protected by section 1322 (b)(2). [In re- Hart, 923 F.2d 1410 (10th Cir. 1991))

 

c. Cure or waiver of default: The plan may cure or waive any default. [B.C. 1322(b)(3)

 

d. Order of payments: The plan may provide for any general unsecured claim to be paid concurrently with any secured claim or with any unsecured priority claim. [B.C. 1322(b)(4)]

 

e. Long-term debts: The plan may provide for the curing of any default within a reasonable time and the maintenance of payments, during the period that the case is pending, on any long-term secured or unsecured debt for which the final payment is due after the final payment required by the Chapter 13 plan. |B.C. 1322(b)(5)] This section, by specific statutory authorization, frequently is applied with respect to claims secured solely by the principal residence of the debtor, notwithstanding the exception contained in Code section 1322(b)(2) concerning non-modification of such home mortgages.

(1) Comment: In most jurisdictions, the right to cure a default exists even alter the creditor has accelerated the debt and obtained a foreclosure judgment, but only up until the time of an actual foreclosure sale.  However, in states where a mortgage becomes merged into the foreclosure judgment, some courts have held that the right to cure terminates upon the entry of a foreclosure judgment. In re Roach, 824 F.2d 1370 (3d Cir. 1987)

(2) "Reasonable time": [l 146] What constitutes a reasonable time to cure a default depends on the circumstances of the particular case. Some of the factors that the court is likely to take into account include:

(i) the amount and reason for the arrearage; (ii) the availability of the debtor's discretionary income to cure the default; (iii) whether the debtor is putting forth her best effort to cure the default; and (iv) the debtor's ability to meet the obligations of the plan and to continue current payments on the installment obligations

 

Interest on arrearages;  Although the courts are split, the better rule is that, unless provided for in the contract or required under non-bankruptcy law, a mortgagee whose only collateral is the debtor's principal residence is not entitled to receive interest on the arrearages when a Chapter 13 debtor cures a default and reinstates the mortgage. Thus, while the mortgagee ordinarily is entitled under the contract to receive accrued interest on the unpaid principal, he may not receive interest on the portion of the unpaid installments that constitute interest. (Landmark Financial Services v. Hall, 918 l;.2d 1 150 (4th Cir. 1990)

 

Chapter 13 Plan Confirmation

file for no money down with a repayment plan and an order from the bankruptcy court
calling for plan payments to be made

 

$0.00 down for chapter 13 cases


 

 

 

 

 

 

Chapter 7 & 13

If you qualify

 

 STOP

  • Creditor Harassment
  • Foreclosure
  • Repossessions

ELIMINATE

  • Credit Card and Medical Bills

** For Chapter 13 cases with wage order, with the balance paid through a trustee as part of a payment plan and not paid directly to the attorney. Court Filing Fee is extra.

 

 

 

 

 

Free Consultation

Reasonable rates

 

 

 

(Elmira)

 

 

file chapter 13
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plan confirmation hearing plan is confirmed subject to lien avoidance motion within 30 days
Charles E. Andersen representing the debtor a New York State attorney not a bankruptcy petition preparer