Chapter 7 Bankruptcy is named from the chapter of the Bankruptcy Code which can be found at Chapter 7 of Title 11 of the United States Code.
Chapter 7 bankruptcy is designed to give the debtor a fresh start. In Chapter 7 bankruptcy all dis-chargeable debts will be canceled. Creditors are prohibited from trying to collect any pre-bankruptcy debt in the future. Most people get to keep all of their property including their home in Chapter 7 bankruptcy.
While filing a Chapter 7 bankruptcy may seem simple, knowing all existing options, filing the proper court documents and understanding how to protect your property through the bankruptcy can be confusing and overwhelming.
When someone files for bankruptcy under Chapter 13 of the Bankruptcy Code, their aim is to have the opportunity to repay some or all the debts in their name, in better terms, i.e. lower or no interest. Unlike Chapter 7 which involves liquidation of assets, this process involves restructuring debts which allows the debtor to use whatever income they may have in the future to pay off the creditors. Filing Chapter 13 Bankruptcy is thus applicable for a debtor who has a regular income, and thus can afford to request for such adjustments or reductions.
The United States Bankruptcy Code gives the debtor a ceiling of 5 years, within which the creditors must be paid back. While the attorney will safeguard your interests, the entire process is carried out under the supervision of the courts.
Immigration is moving from one place to another citation needed It owes its existence to the needs of an ever more intensely integrated global capitalist economy neutrality disputed to have people move around for the purpose of work for reproduction of labor power clarification needed studies particularly higher and more specialized forms of knowledge or political asylum across the borders of some believe according to whom? an increasingly obsolete inter state system. Immigrants are people who obtain legal status marked at a minimum by some form of residence permit that regulates the terms of their employment see also expatriates. Some, but by no means all foreign workers and expatriates seek and reach citizenship in the state where they work. Immigrants are different from the undocumented labor force in that the latter does not have legal status in the country in which he/she works.
Chapter 13 Bankruptcy can remove the second mortgage and even a third mortgage off your home. In a Chapter 13 bankruptcy section 506(a) allows your second mortgage to be stripped off your home and be treated as unsecured debt. Section 506(a) can only be applied to remove a second mortgage off your home if the value of your home is at or below the outstanding balance on your first mortgage.
- For example, if your home is worth $300,000 and there are two outstanding mortgages in the amount of $400,000 (1st mortgage) and $75,000 (2nd mortgage), then section 506(a) can be applied. In this scenario your home value of $300,000 would be below the first mortgage, which would allow you to strip off the second mortgage. In this situation, your second mortgage is completely unsecured.
During the term of your Chapter 13 plan your second mortgage will be treated as unsecured debt, and will be repaid the same percentage as the rest of your unsecured creditors.
In order to remove your second mortgage off your property you must initiate and adversary proceeding or file a lien stripping motion with the court. Most courts require that you file a lien stripping motion that will allow you to obtain a court order approving the removal of your second mortgage. Once your lien stripping motion is approved, your second mortgage will be treated as unsecured debt in your Chapter 13 bankruptcy case.
You must complete your Chapter 13 plan in order for the removal of your second mortgage to be complete. If your Chapter 13 bankruptcy case is dismissed or converted then the lien from your second mortgage will not be removed.