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Consumer Bankruptcy : Chapter 7, Chapter 13, Protection From Claims of Creditors
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  #1  
Old 02-15-2007, 10:25 PM
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Join Date: Feb 2007
Location: Ohio
Posts: 1

Treatment of ARM in chapter 13


What is the name of your state? Ohio

Will I be able to modify my payment plan, when ARM changes (every 6 months)?

How likely will it be that I can sell property during Chapter 13?

What is a 0% Chapter 13 and what are qualifications?

  #2  
Old 02-16-2007, 07:28 AM
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Join Date: May 2001
Posts: 6,455
You will need the trustees permission to sell property of the bk estate while in a 13. A mortgage is a secured asset and will need to be paid at 100% to keep the house. A mortgage arreage may be included in the plan but, must be paid at 100%
In a 13, payments have a priority. Highest priority are your legal fees and plan expenses. Then, things that must be paid at 100% like, secured debts, court ordered child/spousal support, taxes, student loans,etc.
After that, any disposable income goes to unsecured creditors. So, it's not unusual to see a zero or minimal payback to unsecured debt depending on individual circumstances.
A big caveat-per the bk code, a unsecured creditor can't get less in a 13 than they would have received in a 7.
Why are you filing a 13 as opposed to a 7?
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