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Why I Post

Posted by Kevin on July 9, 2011 under Bankruptcy Blog | Be the First to Comment

The main purpose of this blog (in fact, this whole website) is to give you, the consumer, information so that you may make an informed decision concerning whether to file bankruptcy.  Your entire financial future can be riding on this decision.

From time to time, I review the posts to see that they are covering a wide range of topics in bankruptcy.  I did that this morning.  Then, I started to think back why I wanted to get involved in bankruptcy law in the first place. Besides helping people, I found bankruptcy to be more complex that I had imaged, was ever changing (2 Codes and numerous revisions over the years), and allowed me to be a deal negotiator and a litigator (trial lawyer) at the same time.

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Chapter 13 Dismissal

Posted by Kevin on July 8, 2011 under Bankruptcy Blog | Be the First to Comment

In a Chapter 13, the debtor is limited to  $360,475 of unsecured debt.  Unsecured debt is debt where there is no collateral.  Like credit card debt.

However, in a Chapter 13, a debtor can strip off otherwise secured debt that is completely underwater.  For example, if your house is worth $300,000 and the first mortgage is for $350,000 and the second mortgage is for $100,000, the second mortgage is totally unsecured and could be “stripped off”.  When it is stripped off, it  becomes unsecured debt and must be added to other unsecured debt.

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