As a Green Oaks bankruptcy attorney, I am aware that if the mortgage company is able to modify the automatic stay, that means they are no longer part of the Chapter 13 bankruptcy case and they are free to proceed with foreclosure proceedings. Interestingly, the foreclosure proceeding will take place or pick up right where it left off. Thus, if you were a debtor who had a sheriff’s sale pending and you filed a Chapter 13 to stop the sheriff’s sale, the motion to modify the automatic stay will put the foreclosure case right back at the sale date portion. Thus, you want to be very careful when you file Chapter 13 bankruptcy that you are making all of your regular payments to the mortgage company and to the Chapter 13 trustee.
As far as vehicles go, you can also organize a vehicle through a Chapter 13 bankruptcy. Vehicles can be paid back over a three to five year period with the vehicle sometimes getting paid less interest and even a lesser dollar amount.
In addition to homes and vehicles, you can also pay all of your other non-dischargeable debt through a Chapter 13 bankruptcy. Non-dischargeable debt would be student loans, recent taxes, parking tickets, child support, alimony, maintenance, debts due to personal injury based on driving while intoxicated and any other debt incurred through fraud. Chapter 13 allows you to reorganize those debts and pay those back after a three to five year period.
Filing a Chapter 13 bankruptcy involves the filing of a Chapter 13 bankruptcy petition and schedules. A petition is all the information you provided to your bankruptcy lawyer, such as your assets, your liabilities, and your statement of financial affairs. That petition must be signed under penalties of perjury in about 12 different spots throughout the document. Once that document is signed, it is ready to be filed with the bankruptcy court. However, before your case can be filed with the bankruptcy court, you must complete several pre-filing requirements.
The first pre-filing requirement is the credit counseling requirement. Within 180 days of filing, you must complete a credit counseling session with an agency approved by the U.S. Bankruptcy Courts. The credit counseling session is a one hour session done with a credit counselor whereby the counselor is going to go through your income, your expenses, talk about your budget and put in your mind certain non-bankruptcy remedies that may be available to you.