DebtDoc Bankruptcy News Blog

Wednesday, 22 May 2019 22:34

U.S. Bankruptcy Appellate Court Reverses Chapter 13 Plan Modification Roadblocks

Written by

A recent Bankruptcy Appeals Court decision changes the way plan payments are defined and when plan modifications are consequently considered allowable.

In a chapter 13 repayment plan, debtors who are catching up on missed mortgage payments make payments to a trustee to get caught up on the missed payments, while continuing to make their regular ongoing monthly payments directly to the mortgage company. It used to be that a debtor could complete their bankruptcy case when they made all their scheduled trustee payments, even if they weren't current in the monthly mortgage payments that came due after the case was filed.

Rules changed a little over a year ago that requires a mortgage company to file a statement at the end of a chapter 13 as to whether the debtor is current or not. This is good, because it means that a debtor can exit their bankruptcy with confidence that they have fixed their mortgage problems. But it now means that the trustee and other creditors know if the person hasn't made their mortgage payments. Since the chapter 13 plan payment is based on a promise that the debtor will also make all mortgage payments, a case can now be dismissed if they miss mortgage payments during their case.

If you are in a chapter 13 plan and are having difficulty paying both the trustee and your mortgage, call your attorney ASAP! You may have options, but timing is important. Call attorney Chris Bush, at 619 295‑3322, if you need help. He is an experienced bankruptcy attorney and consumer debt advocate. He’ll help you find the best solution to your debt burden and get back you on a track to financial freedom.

Read 291 times Last modified on Wednesday, 22 May 2019 22:44
Chris Bush

With over 12 years of experience and thousands of cases as a consumer bankruptcy attorney, Chris Bush is on the cutting edge of Bankruptcy and Student Loan Law. Chris can assist you in untangling the options to find the best solution for your specific debt relief case.

Initial Free Consultation

Free Case Evaluations
  1. Your Name(*)
    Please let us know your name.
  2. Your Email(*)
    Please let us know your email address.
  3. Phone(*)
    Please write a subject for your message.
  4. Zip(*)
    Invalid Input
  5. Message(*)
    Please let us know your message.
  6. Invalid Input
  7. Enter Code
    Invalid Input

Auto Loan Delinquency Rising

Late Car Payments?

The number of people 90 days late in car payments approaching peak levels since the subprime crisis of 2010.

If you’re late on your car payments, come in for a Chapter 13 consultation!

Compassionate. No-nonsense. Great job. Saved me $85K!

I had three choices: two large groups, or DebtDoc. I chose DebtDoc because of their numerous excellent reviews from clients as well as other attorneys. Also, I wanted someone to provide personal service and have a vested interest in my difficult student loan case.

I certainly made the right choice. DebtDoc's attorneys personally answered two of my phone calls and regularly answered my emails, even on one Sunday evening.

After 30 years of student loan "prison", he got me freedom AND he even got the US Dept. of Justice to dismiss 25% of my loans, which saved me $85K.

I feel like I have a new lease on life because of DebtDoc. I wish I could recommend 10 stars.

Client Testimonial

To whom it may concern,
DebtDoc's attorneys are extremely knowledgeable with the complexities of Federal Student Loans.
I went from a thriving career to full medical disability, ending with an SSDI placement. Unfortunately, I lost everything and became unable to continue making the student loan payments, so it was in deferment for over five years. When the SSDI settled I tried to negotiate an affordable payment plan with the loan holders but they refused my efforts, instead demanding over twice the amount I could afford.
I contacted DebtDoc and found them to be courteous, responsive and quick to assess my situation. They were sure they could help and took time to answer all questions, which relieved much anxiety. Within months they successfully resolved the debt! With much confidence, I highly recommend DebtDoc.