Archive for May, 2013

Six Reasons Of Do’s And Don’ts When Filing Chapter 13

Wednesday, May 15th, 2013
article from admin

A chapter 13 bankruptcy requires a Plan to repay some of a debtor’s obligations; afford a debtor the chance to catch up on those debts where he or she is behind, such as a tax obligation or a house payment; and re-classify some debts to pay only the secured amount rather than what is owed.

Thus, the debtor enters into a Plan requiring the payment of a monthly amount, some of which will be distributed to secured debt (maybe a mortgage or car payment); some to priority debts (like tax or alimony payments); some to administrative expenses (the trustee’s fees); and some to the unsecured creditors (like medical bills and credit cards).

If you are in such a plan or are contemplating filing one, here are 6 do’s and  don’ts:

1. Do make you payment on time to the trustee’s office. Late payments can result in a motion to dismiss the plan.

2. Don’t “skip” a month intending to get caught up. Although this will usually not result in dismissal of the case, getting behind can be difficult, if not impossible, to remedy.

3. Do budget to provide for the payment. It can be as important as a house or car payment.

4. Don’t pay less than the agreed amount. You can easily fall behind that way and not be able to catch up resulting in a motion to dismiss the plan.

5. Do keep track of what and when you send the payment and the number of payments made. You can often track this on line and it is encouraging to know where you are, how many more payments you need to complete the plan, and how well you’re doing.

6. Don’t pay more than the payment amount without consulting your attorney. Most of the time, you won’t pay off the plan earlier and will end up paying more than needed.

Chapter 13 plans bring many benefits: from saving a home to paying off your taxes over time. But you’ve got to stick with the program to make it work.

If you have questions and need help in understanding what you should do, please call……….

Carolyn Secor is a Clearwater bankruptcy attorney and Clearwater foreclosure attorney serving Palm Harbor, New Port Richey, Oldsmar, Tarpon Springs, Seminole, St. Petersburg and the Tampa Bay area.

If you would like more information on our practice, please consult our website at:

www.bankruptcyfortampa.com
or call (727) 254-1704.

Reduce Your Car Loan

Wednesday, May 1st, 2013

article from Bankruptcy Law

It’s important to keep a car. We all know this. We need to get to work, and we need to shop for our family. Sometimes our circumstances change and a vehicle loan that was once affordable, well, no longer is. The law recognizes this and wants to help.

A Chapter 7 bankruptcy filing allows you to “redeem” your car from its loan by paying the car’s value to the lender and discharging the balance. A Chapter 13 filing allows this also, so long as the loan is either more than 910 days old when you file or the loan was not used solely for the car’s purchase. (A secured car loan made after a car’s purchase is not for the car’s purchase. A rollover loan for both a new car purchase and a trade-in car’s loan balance may not be solely for the car’s purchase – courts have split on this.) This is great news when a car is “under water,” where the loan is greater than the car’s value.

If your finances are stretched and you cannot come up with the cash to pay the value of your car, there are lenders who will consider financing a redemption. These are high interest loans, but they still can make sense if the car loan balance is seriously higher than the car’s value. Your attorney can help you find a lender, guide you on valuing your car, and help you with the redemption decision.

Carolyn Secor is a Clearwater bankruptcy attorney and Clearwater foreclosure attorney serving Palm Harbor, New Port Richey, Oldsmar, Tarpon Springs, Seminole, St. Petersburg and the Tampa Bay area.

If you would like more information on our practice, please consult our website at:

www.bankruptcyfortampa.com
or call (727) 254-1704.