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Chapter 13 Plan Duration

Posted in Bankruptcy

No Minimum Time Length For The Ninth Circuit by Bankruptcy Law Network (BLN)  Written by Michael G. Doan Thanks to http://www.bankruptcylawnetwork.com/chapter-13-no-time-length-for-the-ninth-circuit-part-1-of-2/ http://www.bankruptcylawnetwork.com/chapter-13-no-minimum-time-length-for-the-ninth-circuit-part-2-of-2/ August 9, 2008 When the Bankruptcy Laws changed in October, 2005, little did Congress know that they actually made Chapter 13 repayment plans quicker, cheaper, and easier in many cases. At least this has now been determined the law of the land in the Ninth Circuit (Alaska, Arizona, California, Hawaii, Idaho, Montana, Oregon, Nevada, Washington, Guam, and Northern Marianna Islands) because of a landmark case, Maney v. Kagenveama (In re Kagenveama), 2008 U.S. App. LEXIS 13299 (9th Cir. Ariz. June 23, 2008) When the new Bankruptcy Laws were created (BAPCPA), Congress also created an artificial test to determine Chapter 13 monthly payments called the “means test,” to be filled out on Official Form B22C. This test in most cases has...

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Can I keep a credit card out of bankruptcy?

Posted in Bankruptcy

Can I keep a credit card out of my bankruptcy? by Chip Parker, Jacksonville Bankruptcy Attorney http://www.bankruptcylawnetwork.com/can-i-keep-a-credit-card-out-of-my-bankruptcy/ The Bankruptcy Code requires a debtor to list all creditors in his bankruptcy schedules.  However, a “creditor” is typically defined as someone to whom the debtor owes money.  Specifically, 11 U.S.C. § 101(10)(a) defines a creditor as an “entity that has a claim against the debtor that arose at the time of or before the order for relief concerning the debtor.” So, if the debtor has a credit card with a zero balance, the issuer of that card IS NOT A CREDITOR, and therefore, the debtor need not disclose his bankruptcy to that credit card company.  BUT, that’s not the end of the story. Card issuers write very one-sided credit card agreements that seem to get modified all the time.  The Terms...

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Tax on forgiveness of mortgage debt

Posted in Bankruptcy, Principal Reduction

Current law relieves mortgage debtors from having to report forgiveness of mortgage debt through principal reduction as income – even if the mortgage debtor has gotten a discharge on the mortgage through bankruptcy. However, this law expires at the end of 2012. Unless Congress extends this law, those who receive forgiveness of mortgage debt will have to report their principal reductions as income. See IRS Publication...

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Modification Guidelines

Posted in Bankruptcy, Foreclosure, Mortgage Modification, Principal Reduction

Read the Hamp Handbook here. It will answer a lot of questions. Lenders may but are not required to reduce principal balances in a modification down to 115% of the principal balance owing. Lenders may not foreclose on a borrower who is in the process of modification until after the borrower is declined and other options have been considered. A borrower in bankruptcy may proceed with a modification. Unemployed borrowers can have up to six months of reduced payments will seeking new employment. There are many other points these guidelines clarify....

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