Richard J. Shurtz, Attorney at Law

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Chapter 13 Archives

Chapter 13 still offers a few ways to modify or erase mortgages

In Washington state, bankruptcy law must follow federal law in many respects. In a Chapter 13, for example, it is no longer allowed for a debtor to modify the terms of the mortgage on the debtor's residence. The U.S. Supreme Court has set forth reasons why this cannot be done, mainly based of the need to give first mortgage lenders on residential properties some assurance that their loan terms will not later be changed in a bankruptcy.

Chapter 13 bankruptcy provides a payment plan to get current

Washington state consumers can get a fresh start and relieve the pressure of overwhelming debt by filing and completing a bankruptcy. Chapter 13 bankruptcy gives a consumer the opportunity to pay off debt over a three to five-year period during which the debtor will pay a predesignated monthly installment to a Chapter 13 trustee. As soon as the Chapter 13 is filed, the automatic stay goes into effect and continues to prohibit collections by creditors throughout the bankruptcy.

Chapter 13 bankruptcy is a payment plan for secured debt

The best way to keep one's home in Washington state when the mortgage payments have fallen behind is to file a Chapter 13 bankruptcy. No other program compels the mortgage holder to accept monthly payments to get the back amounts paid and the loan up-to-date and current. This can sometimes work even where the borrower has received a foreclosure action against the residential property. In such situations, there is an emergency need to consult with an experienced consumer bankruptcy attorney who is familiar with handling Chapter 13 cases.

Bankruptcy is not the easy way out, but might provide fresh start

When money problems become overwhelming, consumers in Washington will likely consider their options. While bankruptcy can help to resolve money problems, it could have an adverse effect on a person's future because it will stay on his or her record for several years. However, if bankruptcy is determined to be the only option, professional legal advice can ease the process.

Are African American consumers given poor bankruptcy advice?

Faced with serious financial problems, many Washington residents will look for relief. That relief may come in the form of a bankruptcy filing. As part of that process, consumers sit down with a bankruptcy attorney and go over the process to determine if bankruptcy is the best option for their needs, and which type of bankruptcy is most advantageous. According to a recently published report, not all consumers receive that level of advice.

Serial Chapter 13 bankruptcy filer denied future discharge

Many Washington residents find themselves in financial distress. They turn to the U.S. Bankruptcy Court for help, protection and a chance to start over financially. However, if they file too many Chapter 7 or Chapter 13 bankruptcies and essentially abuse the system, the court could deny them a discharge now or in the future.

Making monthly debt more affordable via Chapter 13 bankruptcy

Many people in Washington believe that filing for bankruptcy is the end of the world. While there are several ways to reduce one's monthly payments, filing for Chapter 13 may be the best way based upon a person's unique situation. A recent article describes the various ways to consolidate debt.

Things to consider when filing for Chapter 13 bankruptcy

When many people begin to investigate the different types of bankruptcy protection and debt relief, it can become quickly evident that the options are varied and complex. Depending on a person's unique situation, the best "fit" with regard to debt relief can vary. A recent article describes some ways for those in Washington to evaluate if filing for Chapter 13 bankruptcy is the right option.

Why do I need to pass a means test for Chapter 7 bankruptcy?

In an effort to cut down on potential cases of bankruptcy fraud, individuals seeking bankruptcy relief must effectively prove that they are financially incapable of repaying their debts. This is known as the means test. Unlike school exams that give Washington students either a passing or failing grade, failing the means test is not necessarily a negative outcome, as passing simply means that the filer is eligible for Chapter 7 bankruptcy.

Can co-signers file for bankruptcy if a loan goes into default?

Taking out a loan, purchasing a vehicle or borrowing money for school usually requires a certain credit score before a borrower can sign on. Banks and other financial institutions often allow people without adequate credit to still secure these types of loans by having a co-signer. Parents and even grandparents in Washington tend to step up to the plate when a family member needs an extra signature in order to get a loan, but this practice has some heading towards bankruptcy.