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Will My Chapter 13 Payment Change?

mbcoving — Wed, 17 Mar 2010 15:03:00 +0000

It is possible that your Chapter 13 payment can change over the course of your bankruptcy. You will want to discuss this issue with your attorney in more detail.

A few common reasons are as follows:

If your monthly mortgage payment or Conduit Payment is included in your Chapter 13 plan payment and your mortgage payment increases as a result of as a result of a variable rate mortgage.

If a claim is filed in your bankruptcy by a creditor that is significantly higher than what was originally scheduled.

If additional attorney fees/”non-base” fees are added to your bankruptcy. See your attorney for more information on what non-base fees may apply.

If you fall behind on your Chapter 13 payments and the Trustee files a Motion to Dismiss. The Trustee may have to increase your plan payments to make up for the payments you missed.

To find out more about how Duncan Law can help you or to schedule a free consultation, visit our website.

Duncan Law, PLLC

Charlotte Office:
4801 E. Independence Blvd.
Suite 1100
Charlotte, NC 28212
704-563-1224

Greensboro Office:
628 Green Valley Road
Suite 304
Greensboro, NC 27408
336-856-1234

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What Happens to Property That Cannot Be Protected in Bankruptcy?

mbcoving — Wed, 17 Mar 2010 14:49:00 +0000

The good news is, most property can be protected in bankruptcy proceedings. North Carolina, like most states, allows you to protect most real and personal property by using “exemptions.”

Exemptions are usually state laws that allow you to keep most, if not all of your property. For example, the North Carolina exemptions allow you to protect a car with up to $3500 of equity using the motor vehicle exemption. You can protect most of your furniture using the household goods exemption. When the state legislatures enacted these exemption laws, they allowed people to keep the necessities of life instead of “throwing someone in the street” with no property if they filed bankruptcy. Generally, about 95% of our clients get to keep all of their property using the exemption laws when they file bankruptcy.

However, sometimes a client may have “non exempt” property which we cannot protect. In this event, the Chapter 7 trustee could seize this property and sell the property to pay off a small percentage of the debtor’s debts. For example, if you have a $4000 car that could not be protected by the exemption laws, the Trustee could take this car and sell it. He would then take the proceeds of the sale and pay a portion of the proceeds to your creditors and a small portion to himself for his fee. Many times we can negotiate with the Trustee for you to buy back the property for yourself.

To find out more about how Duncan Law can help you or to set up a free consultation, visit our website.

Duncan Law, PLLC

Charlotte Office:
4801 E. Independence Blvd.
Suite 1100
Charlotte, NC 28212
704-563-1224

Greensboro Office:
628 Green Valley Road
Suite 304
Greensboro, NC 27408
336-856-1234

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Why Do I Have to Take a Credit Counseling Course?

mbcoving — Mon, 08 Mar 2010 02:59:00 +0000

The courts require that you take a credit counseling course from an approved agency prior to your bankruptcy being filed. This is not a requirement from just our law firm, this is a requirement by the Court.

When the bankruptcy laws were changed in 2005, one of the changes included two course requirements. The first is that you take a credit counseling course prior to filing bankruptcy. You must take the course within 6 months prior to your bankruptcy filing. Another court requirement is that you take the course at least 24 hours prior to your bankruptcy being filed. The course is simple, and there are even approved agencies that allow you to watch a video online to complete the course.

The second change in the 2005 bankruptcy laws was the requirement of a financial management course. This is a different course than the credit counseling. Financial management must be taken prior to the discharge of your bankruptcy. You can also take this course online from an approved agency.

At your free initial consultation, we will explain both of these course requirements in more detail.

To find out more about how Duncan Law can help you, visit our website.

Duncan Law, PLLC

Charlotte Office:
4801 E. Independence Blvd.
Suite 1100
Charlotte, NC 28212
704-563-1224

Greensboro Office:
628 Green Valley Road
Suite 304
Greensboro, NC 27408
336-856-1234

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Why Do I Have to Take a Credit Counseling Course?

mbcoving — Sat, 06 Mar 2010 02:43:00 +0000

To find out more about how Duncan Law can help you, visit our website.

Duncan Law, PLLC

Charlotte Office:
4801 E. Independence Blvd.
Suite 1100
Charlotte, NC 28212
704-563-1224

Greensboro Office:
628 Green Valley Road
Suite 304
Greensboro, NC 27408
336-856-1234

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Can Bankruptcy Help Me Save My Repossessed Vehicle?

mbcoving — Sat, 06 Mar 2010 02:20:00 +0000

If your vehicle – car, truck, van, motorcycle, etc. – has been repossessed, you may be able to have it returned to you. If you file a Chapter 13 bankruptcy within 10 calendar days of the repossession, the finance company will usually return the vehicle to you and allow you to make payments within a Chapter 13 bankruptcy. Before the vehicle is returned to you, you will be required to pay the fees resulting from the repossession and provide proof of adequate insurance coverage. In rare cases, the finance company may not voluntarily return the vehicle to you, and you may be required to take additional legal action with the bankruptcy court in an attempt to have the vehicle returned. In these cases, the bankruptcy judge will decide whether the vehicle should be returned to you.

If you wait too late to have the vehicle returned to you or decide you do not want to save the repossessed vehicle, you may want to file a Chapter 7 or Chapter 13 bankruptcy to eliminate the debt from the repossession. Many people do not realize that they are financially responsible for the balance owed on a repossessed vehicle, whether voluntarily or involuntarily repossessed, after it is sold at auction. For example, if you owe $15,000 on your vehicle and it is sold at auction for $8,000, you would be financially responsible for the remaining $7,000. If you qualify for Chapter 7 bankruptcy, it would eliminate the entire $7,000 debt. If you do not qualify for Chapter 7 bankruptcy, you may file a Chapter 13 and eliminate most of the $7,000 debt.

To find out more about how Duncan Law can help you, visit our website.

Duncan Law, PLLC

Charlotte Office:
4801 E. Independence Blvd.
Suite 1100
Charlotte, NC 28212
704-563-1224

Greensboro Office:
628 Green Valley Road
Suite 304
Greensboro, NC 27408
336-856-1234

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What Happens If I Walk Away From My Home and Don’t File Bankruptcy?

mbcoving — Sat, 06 Mar 2010 02:12:00 +0000

When we have a consultation with a prospective client we do everything we can to explore every option that the client may have. Then, the client decides which direction they would like to head. One of the frequent questions we get is what happens if instead of filing bankruptcy they just give up the house and walk away. The answer to that question really depends upon whether or not you have any equity in your house. Equity is the difference between the value of the house and how much you owe.

Substantial Equity: If you have substantial equity in your house then you may be okay just walking away. Typically what happens is the bank will foreclose on the home after you walk away and sell. According to a MSN Money article, John T. Reed, the Editor of Real Estate Investor’s Monthly, a foreclosed home will sale about 5% below the market average but may be up to 30% or 40% below market value.

If the mortgage company is able to recover the full amount that you owe on the property then you are not likely to owe any more money for the foreclosed home. However, you will still have a foreclosure that appears on your credit report.

Little to No Equity: If you have little to no equity in your home and the bank is unable to recover the amount you owe then you will be responsible for the unpaid balance. In other words, if your foreclosed house sold for $100,000 but you owe $150,000 on the house then you would still owe the bank $50,000. It is unlikely that you will have $50,000 to pay out of pocket so the bank has the ability to file a lawsuit against you and obtain a judgment.

Typically speaking, foreclosed properties will not recover the full amount owed to the bank for the mortgage. Therefore, they will look to you to pay the balance. A bankruptcy has the ability to potentially wipe out this entire balance.

The bottom line: if you still owe money for the mortgage even after the foreclosure sale of your home then you will be liable for those costs. Bankruptcy can usually wipe out that left over balance. If you do nothing they will file suit against you and have a judgment that may attach to your property.

To find out more about how Duncan Law can help you, visit our website.

Duncan Law, PLLC

Charlotte Office:
4801 E. Independence Blvd.
Suite 1100
Charlotte, NC 28212
704-563-1224

Greensboro Office:
628 Green Valley Road
Suite 304
Greensboro, NC 27408
336-856-1234

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What is the Statute of Limitations for a Nursing Home Abuse and Neglect Case?

mbcoving — Sat, 30 Jan 2010 21:07:00 +0000

If you or a loved one has been injured or severely neglected in a nursing home, the time frame to seek damages against the facility and staff is limited by law in North Carolina to three years from the last act of malpractice. In other words, you must file a lawsuit prior to the three year deadline or you are forever barred from suing the facility and staff.

It helps to understand how nursing home abuse and neglect cases are viewed by the legal system. A nursing home abuse and neglect case is considered a malpractice case. As defined by the N.C. General Statutes, malpractice arises from the performance of or failure to perform professional services. N.C. Gen. Stat. § 1-15(c) limits the time frame to three years from the last act of malpractice. Only in extremely rare cases of nursing home abuse and neglect would the time frame to file a lawsuit be extended to four years from the last act of malpractice.
Therefore, if you believe you or your family member has been a victim of nursing home abuse or neglect, you should seek legal advice as soon as possible. Most attorneys need six months to review the case and obtain the required expert witnesses (usually doctors and nurses) prior to filing a lawsuit.

To find out more about how Duncan Law can help you, visit our website.

Duncan Law, PLLC

Charlotte Office:
4801 E. Independence Blvd.
Suite 1100
Charlotte, NC 28212
704-563-1224

Greensboro Office:
628 Green Valley Road
Suite 304
Greensboro, NC 27408
336-856-1234

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What If My Bankruptcy Has a Motion to Dismiss?

mbcoving — Sat, 30 Jan 2010 20:46:00 +0000

It is very important that you make your Chapter 13 bankruptcy payments every month as required by your Chapter 13 plan. If you fail to make your monthly payment to the Trustee, the Trustee will ask the Court to dismiss your case. He or she does this by filing a “Motion to Dismiss.” The Trustee will schedule a hearing to discuss the reason(s) you fell behind on your payments. If you receive a Motion to Dismiss you will need to contact your attorney immediately to discuss your options. If you do not want your case dismissed, the Trustee may, under certain circumstances, be able to adjust your plan payment or term to pay the amount you are behind.

To find out more about how Duncan Law can help you, visit our website.

Duncan Law, PLLC

Charlotte Office:
4801 E. Independence Blvd.
Suite 1100
Charlotte, NC 28212
704-563-1224

Greensboro Office:
628 Green Valley Road
Suite 304
Greensboro, NC 27408
336-856-1234

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How Is My Property Protected in Bankruptcy?

mbcoving — Sat, 30 Jan 2010 20:25:00 +0000

Many people wonder how they will be able to keep or protect their property in bankruptcy. In bankruptcy there are certain laws that can protect your property, and these laws are called exemptions. Exemptions allow you to protect most of your property up to a certain amount of value, or equity. To determine the amount of equity you have in an asset such as a house or a car, use this formula:

Equity = Value of property – Amount Owed

So, if the house or car is worth more than the amount you owe, then you have equity in the property. On the other hand, if you owe more than what the property is worth, then you do not have any equity in the property. It is important to protect any equity you have by using the bankruptcy exemption laws.

For example in regard to your home, there is an exemption that says you can protect up to a certain dollar amount for equity in that house. The same goes for different types of personal property, i.e. your car, household goods etc. There are different types of exemptions for different types of property, and each exemption has a different limit. In a majority of cases most of your property will be protected in the bankruptcy. This is a reason why it is important to fill out the bankruptcy thoroughly and in detail so the correct exemptions can be used to protect your property.

To find out more about how Duncan Law can help you, visit our website.

Duncan Law, PLLC

Charlotte Office:
4801 E. Independence Blvd.
Suite 1100
Charlotte, NC 28212
704-563-1224

Greensboro Office:
628 Green Valley Road
Suite 304
Greensboro, NC 27408
336-856-1234

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How Does a Bankruptcy Affect a Judgment Against Me?

mbcoving — Fri, 22 Jan 2010 14:00:00 +0000

If a judgment has been filed against you, then you may want to consider filing bankruptcy. The bankruptcy automatic stay will stop the judgment creditor from trying to collect a debt from you. In a chapter 7 bankruptcy, the debt is eliminated completely. In chapter 13 bankruptcy cases, you are paying a portion of that debt back through the bankruptcy. If you own a home, there is a good chance that the judgment has attached a lien to the home. A separate motion will need to be filed with the court to remove the attachment of the lien to your home.

To find out more about how Duncan Law can help you or to schedule a free consultation, visit our website.

Duncan Law, PLLC

Charlotte Office:
4801 E. Independence Blvd.
Suite 1100
Charlotte, NC 28212
704-563-1224

Greensboro Office:
628 Green Valley Road
Suite 304
Greensboro, NC 27408
336-856-1234

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