What Is A Chapter 13 Bankruptcy? - (801) 903-2616 Salt Lake City Attorney Arnold & Wadsworth
Channel: Arnold & Wadsworth Attorneys At Law
Date: 14/02/2014

Salt Lake City Bankruptcy Lawyer http://www.arnoldwadsworth.com/

"My name is Matt Wadsworth. I am a bankruptcy attorney at Arnold & Wadsworth and over the next three minutes I am going to be explaining a Chapter 13 Bankruptcy and the reasons why it would work for you. In a Chapter 13 Bankruptcy there is time and place appointed, generally between three and five years where the debtor or debtors will be making a payment to the bankruptcy trustee. If the debtor or debtors successfully make these payments they will receive a discharge at the end of that period. During that process though, there are some very interesting things about the Chapter 13 that you should consider. In the Chapter 13 there is one perk called a co-debtor stay, let me break this down for you really quick. A husband files under a Chapter 13, any co-existing debts between the husband and the wife that exist a creditor cannot pursue the wife even if the wife defaulted. That is one of the perks of a Chapter 13. It comes in to play in very intricate fact, situations but sometimes it can be a God-sent. Another perk of a Chapter 13 is something that we like to call a cram down provision. Cram down is used usually for cars. If you have purchased a vehicle outside of two and a half years ago, the bankruptcy will automatically reduce the amount that you own on that vehicle to the amount that it is worth. So that can come into play, if that works for you and your situation. If you bought a Lexus three or four years ago and it is now worth $20,000 less than your debt is worth this would be a good perk of a Chapter 13 because all that over secured amount would be gone, it would just vanish. The other perk of a Chapter 13 that you need to consider is the lien voiding provisions which generally are there just for your primary residence in which case if you have a secondary lien, like a second mortgage or a home equity line of credit. If the value of your house is worth less than what you owe on the first lien, the second lien is automatically removed without you ever paying a dime on it as long as you pay your Chapter 13 payment. Those are the main perks of a Chapter 13 that you should consider. They are quite rare in my experience but sometimes they can be great for different individuals. If you are in a situation where you are being garnished or you are about to be garnished, or your car is about to be repossessed, or you are in the middle of a foreclosure or about to go into a foreclosure. Please give me a call anytime. We are happy to answer any questions that you may have and we do give free consultations."

Arnold & Wadsworth Salt Lake City Office
510 S 200 W, #200
Salt Lake City, UT 84101
(801) 903-2616

298 24th Street
Suite #230
Ogden, UT 84401
801.475.0123


Share this video


Subscribe to our Salt Lake City Divorce Lawyer Channel
http://www.youtube.com/user/arnoldandwadsworth

Facebook: https://www.facebook.com/arnoldwadsworth
Twitter:

Salt Lake City Bankruptcy Lawyer
http://www.youtube.com/watch?v=11XpLuS1mo4