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If a debtor is behind in house or car payments, can Chapter 13 stop a foreclosure or repossession from taking place?
Yes, in most cases. Unlike Chapter 7, where the debtor can usually stop a foreclosure or repossession only if the creditor agrees to a reaffirmation, a debtor in Chapter 13 may provide for car and mortgage payments in the Chapter 13 plan, and the creditor may be...
How does Chapter 13 work? Who can file a Chapter 13 case?
Debtors in Chapter 13 keep all of their property, whether or not it is exempt, but they make regular payments on their debts out of the money that they earn after filing the bankruptcy case. These payments must be at least as much as would have been paid to creditors...
Are all debts that were incurred before the bankruptcy discharged in Chapter 7?
No. There are a number of types of debts that are excepted from the discharge given in Chapter 7. Among the most common are debts for certain taxes, fraudulently incurred credit card debt, family support obligations (including child support and alimony), and most...
What can be done if a debtor falls behind in payments after obtaining a Chapter 7 discharge? Can another bankruptcy case be filed?
What can be done if a debtor falls behind in payments after obtaining a Chapter 7 discharge? Can another bankruptcy case be filed? The discharge in a Chapter 7 case only covers the debts that were incurred before the case was filed. The bills that a debtor incurs...
Can a Chapter 7 debtor make payments on a discharged debt without a reaffirmation agreement?
Yes. Even though a debt has been discharged, the debtor can still make a voluntary payment of the debt. This often happens, for example, with debts that are owed to family members or friends. But the key to this kind of payment is that it must be entirely voluntary;...
What is a reaffirmation agreement, and how does it work?
A reaffirmation agreement is an agreement by a debtor and a creditor about how to treat a particular debt that would otherwise be discharged in the debtor’s bankruptcy. Usually, the debt is secured by collateral that the creditor could repossess or foreclose on. In...