Q: Can I keep my car?
A. Yes. You may be able to keep your vehicle(s). However, you must be able to make your post-filing payments on a timely basis, and you must pay-off the past due payments as part of your Plan. You will normally be required to make your car loan payments as part of the payments made to the Trustee under your Plan.
Q: Can I reduce the amount I owe on my car or other property? (A "cramdown").
A. Yes, in some cases. You may be able to reduce the amount of a debt secured to the current value of the property, and keep that property by paying that amount in the Chapter 13 Plan. This is frequently done on cars that are "upside-down". There are limitations on being able to do this. For a motor vehicle, you generally must have owed the vehicle indebtedness for at least 2 ½ years. You can generally not cramdown a loan secured by your residence (Note: Exceptions exist: If your loan was part of a multi-unit purchase, if the loan includes an adjacent lot that is not part of your residential property, if the loan is for a mobile home that is not attached to the lot, or if the loan is secured by other non-residential property, then you may be able to reduce the amount of the loan to the value of the collateral. Ask your attorney about this.) See also: Lien Stripping of second mortgages.
Q. What is "lien stripping" of a second mortgage?
A. If have a second mortgage or third mortgage secured by your residence, and there is no longer any value supporting that security interest, then you may be able to have the Court declare that the security interest or lien no longer is attached to the property, and should be treated as an unsecured loan under your Plan. This situation may occur where the value of your home has fallen dramatically since you took out the second mortgage, and, now, the amount owed on the first mortgage is more than the current market value of the home. The lien can be removed from property upon your successful completion of the Plan, and the debt discharged as an unsecured debt at that time.
Q: Will filing a Chapter 13 Bankruptcy stop a garnishment of my wages or of my bank account?
A. Yes, if a stay order has been issued and is in effect in your case (see above). The lender must stop any efforts to collect the debt, and this includes garnishment of wages or bank accounts.
Q: Will filing a Chapter 13 Bankruptcy stop judicial proceeding to collect a debt?
A. Yes, if a stay order has been issued and is in effect in your case (see above). The lender must stop any efforts to collect the debt, and this includes the continuation of a lawsuit to obtain a judgment against you.
Q: Will filing a Chapter 13 Bankruptcy stop a divorce case or domestic relations proceedings?
A. In general, no or, at least, not entirely. The relationship between bankruptcy law and divorce/domestic relations law can be very complicated, and is beyond the scope of these responses to Frequently Asked Questions. You need to consult with your attorney on a case-by-case basis in these situations.
Q: I filed a Chapter 7 Bankruptcy case within the last 8 years, but again or still have debt I need help with. Can I file a Chapter 13?
A. Yes. You can file a Chapter 13 at almost any time - even immediately after receiving a discharge in a Chapter 7 case. However, you still must meet the usually qualifications for filing a Chapter 13 case (See above).
Q. I received a discharge in a Chapter 7 Bankruptcy, but some debts that could not be discharged remain. Can filing a Chapter 13 help me with these debts?
A. Yes, in some situations. In a Chapter 13, you may be able to make Plan payments to pay-off certain tax obligations, student loans, some past due domestic relations obligations, or other debts which were not discharged in the Chapter 7. Filing a Chapter 7 and then immediately filing a Chapter 13 is sometimes called filing a "Chapter 20".
FIRST STEP IN FILING:
- Pre-bankruptcy Consumer Credit Counseling: Prior to filing for bankruptcy, the law now requires that you take a course or seminar from a qualified consumer credit counseling agency. The course is designed to assist you in evaluating your credit/debt situation, and to help you determine the best course of action for your particular circumstances. You must obtain a certificate of completion of this course before you can file a consumer bankruptcy case. The course can be completed "on-line" on the internet at a number of credit counseling agencies. (Examples: Hummingbird Credit Counseling at www.hbcce.org or Consumer Credit Counseling at www.ccc.org)
SECOND STEP IN FILING:
- Contacting the Right Attorney: A consultation with a Georgia bankruptcy attorney can provide you with the information you need to determine which option best addresses your circumstances. As a solo practitioner, I am able to give more time and personalized attention to my clients. I will personally communicate with creditors or banks to resolve your issues. Your case will never be handed down to a legal assistant or other staff member.
NOTICE: The services or benefits offered are bankruptcy relief under the provisions of the U.S. Bankruptcy Code. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
