This video talks about obtaining credit while in a Chapter 13 bankruptcy case. Jesse Barrientes:         What happens if – because it’s going to be lean living during this time.  What happens if I need to get credit?  If I’m going to be able – if I’m locked into this plan for three years or five years, and I need – I probably shouldn’t, not the greatest idea but I need credit, Dave.  Help me out. David Siegel:               Well, you are not going to get general credit for credit cards are things like that but what you will see is a case where someone has a vehicle in a bankruptcy Chapter 13 and the vehicle becomes in disrepair where it cannot run.  That person needs transportation to + Click Here For Read More

This video talks about keeping all of your property in a Chapter 13 bankruptcy case.  However, the debtor could elect to surrender property as well.  It really depends upon the desires of the debtor. David Siegel: Does someone get to keep all of their property when they are in a Chapter 13 or do they have to give up some property in exchange for this reorganization? Jesse Barrientes: Typically they get to keep all of their property. I suppose there have been some instances and I think I was referring to that before where you have people that are all over. People – low-wage earners and really high wage earners. And when you get to the top nonchalant or if somebody’s got 12 cars, yeah, + Click Here For Read More

This video talks about creditors and their acceptance or rejection of a proposed plan. David Siegel: Let me ask you this, Jesse. Do creditors object to your plan for your organization or do they just accept it? Jesse Barrientes: It depends on the creditor. Sometimes they object. Essentially, and we talked about this which is similar in a Chapter 7. It’s a 341 Meeting. It’s essentially the same, Meeting of Creditors. But this is a meeting with the trustee to approve the plan. And I’ve seen some trustees for example; they want to maximize what it is. So let’s say for example that part of the money that’s coming out, okay, is voluntary contributions to your pension. Well, unless it’s what + Click Here For Read More

This video talks about the desire to have the first plan payment in hand when filing a Chapter 13 bankruptcy case.  It is required by my office in most cases.  There are some exceptions. Your office, Dave, you also do the first plan payment as well. Do you not? David Siegel: What I like to do in many cases is get first plan payment that’s going to go to the trustee upfront. The reason for this is its good faith, it shows the trustee when you go to meet him that you’ve already got one payment in the till, you show that you have the ability to pay and it also softens the creditor objections to a certain extent. Someone is not going to allege bad faith if you already can show that you + Click Here For Read More

This video talks about the method of paying the Chapter 13 Trustee.  Payroll control is the best way to have success in your Chapter 13 case. Jesse Barrientes: So how do I pay the trustee? Do I send them a check? A money order? How does that work? David Siegel: Well, if you are gainfully employed and you are working for an employer, then I’m going to mandate payroll control and that’s where the money comes directly out of your payroll check to the trustee. Jesse Barrientes: Does it have to come out? David Siegel: It has to come out through my office. I’m not going to do a case if you’re not going to go on payroll control because that basically tells me you don’t have a desire to + Click Here For Read More

Your budget as compared to IRS standard allowances is going to determine, in part, how much you pay back to creditors over the life of your plan.  The video below touches upon that notion. Jesse Barrientes: Well, you mentioned the plan payment. How do I go about paying the trustee? So assume now we have gone through the numbers and we know what my disposable income is. And by the way, that’s pretty lean, right? There’s nothing else built in that budget. There’s nothing for entertainment or anything else. I’m going to be living lean for that period of time. David Siegel: Yeah, well, you should be living lean because you are depriving your creditors and making them wait 3 to 5 years. So + Click Here For Read More

This video talks about the percentage that is paid back to creditors in a Chapter 13 bankruptcy case.  It will vary depending upon the assets, liabilities, income and expenses of a debtor.  Each case is particular to the facts of that case. Jesse Barrientes: What kind of percentage do you pay back in a Chapter 13 consolidation? David Siegel: It’s going to depend on a number of factors including your assets, your liabilities, your income, and your expenses. And whether or not you filed a Chapter 13 and got a discharge or a Chapter 7 in the last several years. In most cases is going to be the difference between your income and your expenses which is known as your disposable income. So + Click Here For Read More

The video below talks about the automatic stay in a Chapter 13 bankruptcy case.  This is basically the protection from creditors that the filer is seeking. What is the Chapter – rather what is the automatic stay and is applicable in a Chapter 13? I know we talked of one of our other shows with respect to Chapter 7. We talked about the automatic stay. But is it applicable here, to Chapter 13 as well? David Siegel: It is. The automatic stay is what you get upon filing which basically tells creditors they cannot take certain collection actions. The automatic stay is everything the client is looking for. It stops the foreclosure dead in its tracks. As long as the sheriff’s sale hasn’t + Click Here For Read More

This video discusses the pre-filing requirements for someone looking to file Chapter 13 bankruptcy.  They are similar, but not exactly the same as the requirements for filing Chapter 7 bankruptcy. What are the prefiling requirements for Chapter 13? David Siegel: Well, the first thing you have to do for Chapter 13, you have to provide your most recent federal, four years of federal tax returns. Jesse Barrientes: Four years? Why four years? David Siegel: Well, legislature felt that under Chapter 13, you should have to provide four. That’s not the case with other Chapters of the Bankruptcy Code but Chapter 13 is different. They want four years of federal tax returns. So if you have + Click Here For Read More

This video talks about under what circumstances someone would want to file for Chapter 13 bankruptcy.  Each case is different and each case needs the be evaluated to ensure that filing is going to accomplish the requested goal of financial relief. David Siegel: When would somebody want to file a Chapter 13? Jesse Barrientes: Well, to save a car or to save the house in arrears. We have a lot of mortgage issues going on. Sometimes people just need to kind to get a foothold on things. Maybe they haven’t been the best at managing their money and I find that there’s a lot of people – it really doesn’t matter. I’ve seen people that come in of all different types of income levels and have + Click Here For Read More