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Posted on Saturday, 2nd April 2011 by Toby Duncan

Chapter 13 bankruptcy cases have claim deadlines by which date the debtor’s creditors are supposed to file claims in order to be included in the roster of creditors entitled to distributions of money out of the Chapter 13 plan. I represent a debtor who prior to filing owed money to a law firm which represented him in a pre-bankruptcy legal matter. Three months after the Chapter 13 claim deadline the law firm filed an unsecured claim.

The first question is whether or not the debtor cares if an unsecured creditor files a late claim. If a debtor is paying all of their disposable income into a plan, but the plan will not pay 100% of unsecured claim, then a late claim does not change the amount of the debtor’s monthly plan payment or total payments under the plan. No harm no foul. If the debtor’s plan must be a 100% plan for any number of reasons (such as the debtor’s desire to reaffirm an investment property) then a late filed claim is important to the debtor because the claim would increase plan payments.

In this case, my client is required to pay 100% of unsecured claims, and therefore, opposed the late claim. The cre

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Tags: Chapter 13, Claim
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Posted on Wednesday, 23rd March 2011 by Eden Fryett

A person who applies loan from a certain company is subject to a period of payment. This depends to the terms they applied for. Some lenders will offer their debtors many terms or mode of payment. Others may apply short-term loan or a long-term loan. When we say short-term loan, this pertains to a loan application of a debtor which is payable within 1-3 months only while a long term loan can be amortized into 3 months up to 1 year or more depending on the creditor’s policy. Lending companies planned to have long-term loan offers to their debtors because they will earn more interest from long-term debts rather than those short-term loans. This is how they compare debt yield as they observe the mode of payment of their debtors. The longer the term is, the more they will gain interest and will give them eventually a reasonable income in the run of these terms.

Debt yield is the computation of income of creditors to the loans that they gave to their debtors. This is the period where they base their calculation of interest and other earnings by lending money to different debtors. A

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Tags: Debt, Debt Yield
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Posted on Tuesday, 22nd March 2011 by Toby Duncan

Did you know you can get rid of certain back income taxes (both Federal and State) in bankruptcy? Oftentimes, clients falsely believe they can never discharge taxes through bankruptcy. As the saying goes… “death and taxes.”

In general, taxes can be discharged in bankruptcy if it has been at least:

• Three years from due date of the return;
• Two years from actual filing of the return (Substitute for Returns do not count);
• 240 days from an assessment;
• Returns must not be fraudulent and there must be no evasion.

As you can see, timing is critical when performing the above analysis. File on the wrong date – you might get stuck with tax debt that otherwise could have been discharged had you waited. In addition to reviewing your returns, requesting a tax transcript is critical in determining the timeline.

If you have recent tax debt that we can’t discharge, Chapter 13 can be a good alternative. In Chapter

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Tags: Back Income, Back Income Tax, Bankruptcy, Income Tax
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Posted on Friday, 18th March 2011 by Eden Fryett

When you dont pay the bills owed upon an automobile note, the car company has no choice but to repossess the vehicle. When you miss a succession of mortgage payments, theres sooner or later bound to be a foreclosure payment tacked upon the door. However, what happens if you spent to your credit card limit on dinners out or plane travel or any number of different goods and services that cannot be so easily replaced? For that matter, what if the credit card debt was employed to pay for health care or medical needs? At this point, debt settlement solutions could well be the answer for both you and the lenders.

Unfortunately, the settlement negotiation industry has come under increasing scrutiny and negative publicity of late, and too many Americans who may well benefit from the services of debt settlement solutions providers instinctively turn away from the program without even investigating just what the method could mean for their own household finances.

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Posted on Thursday, 17th March 2011 by Toby Duncan

Mortgage mediation in Chapter 13 bankruptcy is turning out to be more effective than mediation ordered in state court foreclosure cases. This, according to a report presented at a local attorneys’ meeting. Mortgage lenders express greater willingness to modify first mortgages of debtors in Chapter 13 bankruptcy compared to other debtors already facing foreclosure in state court.

The explanations given are common sense. A Chapter 13 bankruptcy debtor eliminates or reduces other debts through bankruptcy which makes it easier to pay the first mortgage and therefore, more likely the modification will succeed. A Chapter 13 permits the debtor to pay only part of his unsecured debts and only part of a second mortgage payment, if any. The debtor pays his other creditors only what he can afford to pay based on current income and expenses. The reduction of all other debts permits the debtor to concentrate on paying his modified first mortgage. <

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Tags: 13 Bankruptcy, Chapter 13 Bankruptcy, Mediation, Mortgage Mediation
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