A failure to follow a chapter 13 pay order is something I have witnessed twice within the past year. On one occasion it was on the debtor, and the other time it was on the employer. In each instance there was a confirmed plan and a pay order in effect. In one situation the employer…
A fee only chapter 13 plan is one in which there is zero or very little money to pay creditors in a chapter 13 plan. It is not to be confused with a zero percent plan where secured and priority creditors are paid, but general unsecured creditors get nothing. Why would anyone propose such an…
You can use your 401k payroll deduction to reduce your chapter 13 plan payment dollar for dollar. It may be hard to believe, but you may be part of the community who has excess income for bankruptcy purposes. Excess income is determined in the following ways: The good-faith income test In a chapter 13 the…
Chapter 13 bankruptcy is still a real and viable way to save your home. At this time the bankruptcy courts do not have the legal authority to do a loan modification for your primary residence. However that is not the case for second mortgages, third mortgages or equity lines of credit. I am not talking…
Lack of Feasibility: The New Chapter 13 Wrinkle Feasibility issues. The Chapter 13 Trustee for the Cleveland division of the bankruptcy court has increasingly been filing motions to dismiss confirmed chapter13 cases. The latest issue: the plan is not feasible. What on earth does this mean? For a plan to be confirmed in a chapter…