There's a Chapter 13 bankruptcy case (Plourde, John P. and Debbie M.; In re) that may give us a little glimpse at the strategies mortgage lenders may employ to fight modified mortgages in bankruptcy. The details of the Chapter 13 Bankruptcy case: American Home Mortgage Servicing Inc. filed a secured proof of claim of $288,396 [...]

Many debtors considering bankruptcy are reluctant to file for Chapter 13 bankruptcy for many reasons, one of them the fear of a future job loss . What if a debtor files for Chapter 13 bankruptcy and then is unable to make Chapter 13 Bankruptcy payments because of a job loss? Well, there are some options [...]

If you're facing foreclosure , you must act quickly. In many states, such as Texas, the mortgage lender doesn't need to take you to court to move forward with foreclosure, they can simply give you notice and within 20 days you could be on the streets. When you're facing a foreclosure, the first thing you [...]

There was an interesting case In re Delp, No. 08-31466 (Bankr. S.D. Ill. 02/09/09) in which debtors' Chapter 13 Bankruptcy plan was rejected by the bankruptcy court because it was determined that the proposed plan was made in bad faith. Basically the debtors' initial Chapter 13 bankruptcy plan proposed $1,492.43 in monthly payments. Afterwards, when [...]

In a Chapter 13 Bankruptcy case overseen by Judge Manuel Barbosa, the bankruptcy court determined that if a debtor's household size changed after filing for bankruptcy the length of their Chapter 13 bankruptcy plan could change accordingly. In this particular case a bankruptcy trustee opposed confirming a Chapter 13 bankruptcy plan because the plan's length [...]

Oftentimes a debtor who files for Chapter 13 bankruptcy will incur additional debt over the course of his/her repayment plan of up to five years. According to the bankruptcy law, certain debts that are classified as "necessary for the debtor's performance under the plan" can be included in the Chapter 13 bankruptcy plan post-petition. For [...]

In the case of Midgley, Robert and Karen; In re,the bankruptcy court modified the debtors' Chapter 13 bankruptcy plan to seize $76,000 because of the debtors' failure to report income changes. When the debtors filed for Chapter 13 Bankruptcy in 2005, they had a monthly income of $5,972 and $5,517 in expenses. The bankruptcy court [...]

In the case of McCully, Paul and Jennifer; In re, the debtors were allowed to reduce the amount of their repayment plan and the number of payments in Chapter 13 bankruptcy because their income changed in such a way that it placed them below the median income level. The couple in bankruptcy requested a change [...]

There is a very interesting case Salata, Donald R. and Jean E.; In re where a creditors' objections to a debtor's plan was overruled. In the case, the debtor in Chapter 13 bankruptcy had a home that was purchased for more than it is currently worth and had two mortgages on the home. The debtor [...]

As we've discussed many times on this blog, there is legislation in the pipeline that if passed could help homeowners modify toxic loans in Chapter 13 bankruptcy. Many homeowners considering Chapter 13 bankruptcy are wondering if they should wait until the new law is passed before they file for Chapter 13 bankruptcy. The simple answer [...]