Chapter 13 bankruptcy is about payments. After all, it’s a “payment plan bankruptcy.” But what if you just can’t make the payments?
In bankruptcy, some words don’t have their ordinary meanings. “Surrender” is one of these words. Many people who file bankruptcy surrender real estate or their car.
A Chapter 7 bankruptcy can be easy or difficult. Here are four steps to making it go quickly and smoothly:
You made a decision to file bankruptcy due to the financial stress. The law threw you a life preserver and you are on the way to financial recovery.
The Attorney General recommends that homeowners who are in or facing foreclosure contact their lender or servicer or a government-approved housing counselor.
A general rule, student loan debt is non-dischargeable. Bankruptcy Code Section 523(a)(8) provides that unless you can show “undue hardship” your student loans will survive your discharge.
You can use Chapter 13 to “strip off” a home equity or other 2nd mortgage on a home, if there is no value (equity) after the main mortgage debt is subtracted. Every significant court dealing with this has said so.
