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Lecture Notes: Bankruptcy |
Qualifications: Not just everybody can file for Chapter 13 protection.
The Chapter 13 Plan: What are the provisions and requirements to participate in a wage-earners plan?
Motions, Complaints and Problems::
What Features Does a Chapter 13 Offer:
All
property stays in the debtors possession and control and debtor keeps the
assets on completion of the plan.
The estate consists of all property interests in the debtor's possession at time of filing, plus all after-acquired property up to the time the case is closed.!!!!.
The estate also includes the debtor's earnings after filing and up to the time the estate is closed.
If debtor later converts to a chapter 7, the estate will consist of the property in possession of the debtor at the time of filing the chapter 13 petition, but not the after acquired property.
Homestead mortgages:
-No interest on interest for agreements to cure mortgage default.
-May cure default until sale at foreclosure
-Some mortgages may be stripped to value of the homestead.Operation of debtor's business may continues subject only to reports to the court or orders of the court.
Exemptions are the same.
best interests of the creditors" test: The value to be distributed to the unsecured claims cannot be less than what would have been paid under a Chapter 7. The creditors are not expected to participate in a wage earners plan when they would have come out better under a straight liquidation.