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$0 Payment Ch 13?

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    #16
    ch7 lien strip/settlement
    We should really try to come up with a better name for this Calling it a chapter 7 lien strip is just sooooo misleading :laugh

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      #17
      Originally posted by HHM View Post
      We should really try to come up with a better name for this Calling it a chapter 7 lien strip is just sooooo misleading :laugh
      Sorry, I know. I added the "settlement" to the description to try to help with the accuracy.
      1/15/10 Filed ch7 2/18/10 314 meeting
      2/22/10 Report of No Distribution
      4/20/10 Discharged 5/20/10 Closed!

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        #18
        Originally posted by pcn View Post
        Just found out last week we have a 5k penalty due for an early 401k withdrawl. Why?
        This is a reason to be in a CH13 rather than a 7. Just like lien stripping or curing arrears on secured debts.

        So in your case it would pay to be in a 13.

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          #19
          Originally posted by HHM View Post
          How you can sometimes get around this is by inserting language into the plan about devoting future disposable income to the plan, etc etc.
          I still don't see how these plans are confirmed. The Trustee should be livid, as the administrative costs are a pain. I mean, the Trustee makes nothing, really. The Trustee loves my case... making over $30K to send out a total of about 360 checks over 5 years. I want that job!
          Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
          Status: (Auto) Discharged and Closed! 5/10
          Visit My BKForum Blog: justbroke's Blog

          Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

          Comment


            #20
            Originally posted by walkthaplank View Post
            This is a reason to be in a CH13 rather than a 7. Just like lien stripping or curing arrears on secured debts.

            So in your case it would pay to be in a 13.
            1/15/10 Filed ch7 2/18/10 314 meeting
            2/22/10 Report of No Distribution
            4/20/10 Discharged 5/20/10 Closed!

            Comment


              #21
              Originally posted by pcn View Post
              By "pay to be in a 13" do you mean discharge the back taxes?
              Ours is from our 2007 taxes, so I was under the impression that it couldn’t be discharged. Is there another benefit to doing the 13 in the case of back taxes? Thanks.
              Well, yes there is. First, it's to be in a payment plan that spreads them out 36-60 months. If you are under the "normal" IRS guidelines, it's either $350/month or some crazy formula (not too unlike the "Means Test") to determine how much you can pay monthly.

              Second, there are parts of the taxes that can be discharged. The IRS Taxes are broken into the past due amount, plus penalties and interest. The penalties are dischargeable in a Chapter 13. So, if your Chapter 13 only pays a 10% dividend to unsecured creditors, you'd only pay 10% of the IRS penalties and receive a discharge of the rest. I will be discharging about $2K in IRS penalties since I'm in a 0% unsecured payment plan.
              Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
              Status: (Auto) Discharged and Closed! 5/10
              Visit My BKForum Blog: justbroke's Blog

              Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

              Comment


                #22
                Most courts wouldn't allow a CH13 where only the attorney and trustee got paid.
                I do not provide legal advice. All I do here is give my two cents as an opinion and at least share some of the facts that I know. Attorneys can provide legal advice, so go ask them or hire one.

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