Author: Team Flexsin

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Debts in bankruptcy can be classified into three categories, namely, secured debts, unsecured debts, and priority debts.

Priority debts include IRS debts, domestic support agreements and penalties for personal injuries or death occurred due to DUI offenses. These debts are generally non-dischargeable. Priority debts are still owed even after Chapter 7 or a Chapter 13 bankruptcy until they paid off.

Secured debts are the debts with a purchase contract such as a house with a mortgage or a car with purchase money as security. In Chapter 7 bankruptcy, a debtor gets three choices in terms of secured debts:

• The secured asset can be surrendered to the creditor in order to satisfy the debt.
• The debtor can offer to re-enter the contract with the creditor, with the initial terms of the original contract intact. If the creditor agrees to the offer, the debtor might be allowed to keep the property, as long as he or she is current with the payments.
• To pay the market value of the secured debt to the creditor and keep the asset. This is often an attractive choice, as the value in the secured instrument is more than the market value of the asset.

The treatment of secured debts is different in a Chapter 13 bankruptcy than in Chapter 7. In Chapter 13, the debtor can either use their bankruptcy plan to continue to make payments or surrender the asset. There is no need for the debtor to be up to date with the payments in a Chapter 13 case, as it allows the debtor to make the payments over the life of the plan. Even the creditor cannot make an issue of it. Cram-Down is also one of the possibilities.

Unsecured debts include no security interest like payday loans, credit cards, etc, which are eliminated in a Chapter 7 case. In a Chapter 13 case, the repayment plan of the debtor based on their debt and disposable income will decide whether the secured creditors get the full payment or will they get very little.

In order to know more about the kinds of debts in and their dischargeability in bankruptcy, and to take guidance from an experienced bankruptcy attorney, contact the Recovery Law Group at www.staging.recoverylawgroup.com or call on 888-297-6203.

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Priority, secured and unsecured are the three classifications of debts in a bankruptcy. A secured debt needs a property as collateral, which can be confiscated by the creditor in case the debtor fails to pay off the debts. Mortgage loans are mostly secured by homes. Car loans usually have the car as collateral.

An unsecured debt does not have any collateral as a security. Thus, in case of failure to pay the debts, the creditor will not be able to take the debtor’s property without getting any judgment.

Priority debts are required to be paid before any other owed debts. Such debts include taxes and some attorney fees. 11 U.S.C. §507 has a list of all the priority debts.

You can contact the Recovery Law Group for any bankruptcy and debt related queries. They are the best bankruptcy attorneys of Los Angeles & Dallas, TX. Visit www.staging.recoverylawgroup.com or call on 888-297-6203.

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Marital debts will not vanish because of a divorce. The creditor can still make attempts to collect from you despite the statement in the divorce decree that your ex will keep you harmless from creditors.

Property division in divorce means the division of property. Often, the party, who is not liable for a different debt, gets an upside down home in exchange for it. Each party is supposed to pay the debts allocated to them and keep the other party harmless from them. In a county court, this order is enforceable as a ‘Contempt Action’. It can provide remedies like attorney’s fees, court fines and even imprisonment, but it can’t provide the removal of your name from that debt. Thus, the creditor can make attempts of collecting from you in case your ex ceases to pay since your name still exists on the debt. To remove your name from the debt, you can either refinance the collateral or get your personal liability removed by bankrupting on the debt.

After the possession of the house by the ex-spouse, they often lack sufficient income for refinancing, as they don’t have sufficient income for making payments on their own. This often leads them on the verge of foreclosure or bankruptcy, sometimes without informing the other party. Many debtors remain unaware of their ex-spouse’s non-payment until the house lands in serious arrears. In such a case, the debtor can sue the ex-spouse for contempt.

The risk of liability persists for a long time, as home mortgages are often extended for as long as thirty years. In such cases, if, after a divorce, a house is left unpaid for decades, it can still benefit from the credit of the innocent ex. Under such circumstances, full payment of the note or the payment in bankruptcy is the only way of avoiding foreclosure.

You can schedule a meeting with the best bankruptcy attorneys of Los Angeles & Dallas, TX, for expert guidance and consultation on bankruptcy-related matters. Contact the Recovery Law Group at www.staging.recoverylawgroup.com or call on 888-297-6203.

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The Honorable Karen S. Jennemann was declared the Chief Judge of Bankruptcy for the Middle District of Florida on October 1st, 2011. She is a graduate of William & Mary who had been practicing law for over 25 years in Florida. She presides in Orlando of Orange County, Florida.

She replaced the former Chief Judge, the honorable Paul M. Glenn. He presided in Jacksonville of Duval County, Florida. Judge Glenn was appointed to the bench in 1993. He graduated from the Duke University in 1970 and has legal experience of over 40 years.

The cases decided either in Orange County or in Duval County have a persuasive authority over one another in making decisions related to new cases with similar facts, as both the counties lie in the bankruptcy court of the Middle District. However, cases decided by a non-chief judge are less persuasive than the ones which are decided by a Chief Judge. Thus, without any argument, the most powerful decisions are now made in the bankruptcy court of Orlando instead of Jacksonville.

For any bankruptcy-related queries and experienced consultation, contact the Recovery Law Group at www.staging.recoverylawgroup.com or call on 888-297-6203.

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Recently, the legal world has been debating about the filing of bankruptcy before or after the closing of the foreclosure. First of all, people facing foreclosure should not always opt for bankruptcy as it is not necessary that it is always the best option for them.

In case bankruptcy is the right option for you, some attorneys might recommend you to file for bankruptcy after the foreclosure of your home. Thus, you will be allowed to discharge your debt and will be able to move on with your life, although, your options might get limited.

Pre-foreclosure filing may allow you to fight the foreclosure after bankruptcy. Your interest in the property would be surrendered to the Trustee. The Trustee will then have the option of liquidating the mortgaged property. However, the Trustee usually disclaims the interests, as the mortgage is often more than the worth of the house. The decision of continuing the foreclosure, during or after the bankruptcy, then lies in the hands of the bank. You may be allowed to stay in your home even during the bankruptcy, although, it may affect your bankruptcy exemptions. During this time, you will not be making any mortgage payments. So, theoretically, you will be staying rent-free in the house. Thus, unpaid mortgage payments could help you to save thousands of dollars, depending on the duration of the bankruptcy. At the end of your bankruptcy case, you should be free of all your unsecured debts and should have savings that can be used for negotiating with the bank. In case your negotiations fail, you can simply walk
away, as you will not be personally liable for the mortgage any longer.

If you want to stay in your home even after filing for bankruptcy, contact the Recovery Law Group, for proper guidance and consultation on bankruptcy-related matters. They have the best and experienced bankruptcy attorneys who will help you in successfully navigating through the entire process.

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The Claims Bar date is indispensable in a bankruptcy. All the creditors are supposed to make a claim on the debtor’s estate till this date or they will not be allowed to collect their debt. This date gets generated automatically after the filing of the case, and first appears on the Notice of Filing. The creditors, who receive the notice of bankruptcy, must make a claim within 90 days. In case of improper bankruptcy notification, a creditor might be allowed to make a late claim. Governmental Units also have a claims bar date, though they get additional time to make claims.

Despite receiving a claims form and instructions along with the Notice of Filing, some creditors fail to file the claim or don’t file it properly. Thus, with the help of your attorney, you can make objections to unfounded claims, incorrectly filed claims, or to the ones stating inaccurate amounts of debt. Knocking out claims can save significant amounts of money for Chapter 13 debtors, thus, creating an opportunity of coming out of bankruptcy by paying. Debtors can payout of bankruptcy by paying every owed penny to all the creditors who have made claims. Once no one is left to be paid, the case gets closed.

To know more about the Claims Bar date and its effects on your bankruptcy, contact the Recovery Law Group at www.staging.recoverylawgroup.com or on 888-297-6203.