A chapter 13 bankruptcy is a reorganization for an individual person or married couple. A chapter 13 debtor proposes a chapter 13 plan that tells creditors whose debts are being restructured using the bankruptcy code, whose debts will be unaltered by the bankruptcy process, what creditors will be paid and what creditors will receive their collateral back in place of payment.
I am often asked, “What happens to my small business if I file for bankruptcy?” And the answer I always give is, “Well, it depends on a number of factors.”
These factors include the chapter under which a business owner files their personal bankrupty, whether or not the business has valuable assets, whether the business has debts, whether the business has pledged its assets to its creditors, and whether the business has enough ongoing revenues to pay its monthly expenses.
Not a week goes by that I am not asked by a debtor if they can discharge their student loans in bankruptcy. The short answer I have given my clients over the years has been a quick “NO”. However, the short answer I now give clients now is “MAYBE”.
Whether or not you can strip off your home’s second mortgage in bankruptcy used to be any easy answer to arrive at. If your home was worth less than the balance of the first mortgage, you could strip off any junior mortgage. Historically, this relief was available in Chapter 13 bankruptcies only (see my Chapter 13 web page here: Chapter 13 Bankruptcy).
If you cannot pay your HELOC, the bank CAN foreclose on your home. See our blog posts on foreclosure, here: http://www.miamibankruptcy.net/blog/foreclosure
HELOC means Home Equity Line Of Credit, and it is basically the same as a mortgage. In exchange for the money borrowed, the homeowner gives the lender a mortgage lien. If the money is not repaid, the lender can foreclose and sell the home.
A very important Statute of Limitations/Quiet Title Case is pending before the Florida Supreme Court. For a discussion on what a statute of limitations is, see my previous blog post here: statute of limitations .
For a discussion on what a quiet title action is, see another previous blog post here: Quiet title
A very important Statute of Limitations/Quiet Title Case is pending before the Florida Supreme Court. For a discussion on what a statute of limitations is, see my previous blog post here: http://www.miamibankruptcy.net/blog/statute-of-limitations . For a discussion on what a quiet title action is, see another previous blog post here: http://www.miamibankruptcy.net/blog/quiet-title .
Some people that file for bankruptcy have a choice of filing Chapter 7 or Chapter 13. For others, the option to file a Chapter 7 may not be available to them, or it may not be a good option and Chapter 13 may be more appropriate given their situation.
Everyone must understand that filing a bankruptcy is not running FROM your creditors, it is like running TOWARD your creditors! And the Chapter 7 Trustee is like all of your unsecured creditors rolled up into one person.
A quiet title is where a owner asks a judge declare that a mortgage is not a valid lien against their property. In 2008, the average person was unable to describe what a foreclosure was. Now, the average person can explain that, “A foreclosure is where the bank takes away your property because you did not pay.”