Central District Consumer Bankruptcy Attorney's Association

Chapter 13 is all about keeping assets while paying off creditors.
Congress set the time for paying off the debt in 1325(b). Now the tee or
a creditor can make an argument that debtors should contribute all of
their disposable income to pay creditors sooner, but it is very unlikely
that they will demand payment from the liquidation of an asset.
However, you may want to talk to the debtor and maybe even her husband
about their future goals. They may want to negotiate their debts instead
of filing a bankruptcy. Whether they like it or not the bankruptcy is
going to affect their credit. Creditors may use this information to ask
for larger down payments and higher interest rates. Therefore, I would
spend a little more time inquiring about their goals and how a
bankruptcy may affect their plans.
Thank you,
Nancy B. Clark
100 N. Barranca Ave, Suite 250
West Covina, CA 91791
Tele: (626) 332-8600
Fax: (626) 332-8644
www.blclaw.com

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Who is trustee? If its Ms. Rojas she is very fair about letting you use a
five year plan. I've had 1 case similar issue.
Who is trustee? If its Ms. Rojas she is very fair about letting you use a five year plan. I've had 1 case similar issue.

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Do you see a problem with this case? Will trustee object that debtor
should use available cash to pay off the debt immediately rather than
filing chapter 13? Will the trustee require debtor to pay off the debts in
3 years instead of 5 year?
Chapter 13 Debtor is married and not separated, but filing alone. The
filing was prompted by a wage garnishment.
Debts: Debtor owes $25,000 in credit card debt and no other type of debt.
Assets include:
1. two paid off community property houses worth $240K each, held in joint
tenancy; and
2. $50K (community property) in a checking account titled in the name of
the non-filing husband.
Income: Debtor and her non-filing husband have nearly $4k/mo disposable
income on schedule J due to their low living expenses. However they pass
the means test. Debtor's husband makes quite a bit more than Debtor.
Why is the debtor filing this 100% plan instead of paying it off directly
and immediately? I asked them why they don't pay off the debt.
Apparently, Debtor's husband wants to use his community income and
community assets (money in his bank account) to buy more real property. I
believe an additional unspoken benefit is that the bankruptcy case will
deny Debtor access to revolving credit for the 5 year duration of the case.
Do you see a problem with this case? Will trustee object that debtor
should use available cash to pay off the debt immediately rather than
filing chapter 13? Will the trustee require debtor to pay off the debts in
3 years instead of 5 year?
Alik Segal
Alik.Segal@gmail.com
310-362-6157
California Central District
Do you see a problem with this case? Will trustee object that debtor should use available cash to pay off the debt immediately rather than filing chapter 13? Will the trustee require debtor to pay off the debts in 3 years instead of 5 year?
Chapter 13 Debtor is married and not separated, but filing alone. The filing was prompted by a wage garnishment. Debts: Debtor owes $25,000 in credit card debt and no other type of debt.
Assets include:1. two paid off community property houses worth $240K each, held in joint tenancy; and2. $50K (community property) in a checking account titled in the name of the non-filing husband.
Income: Debtor and her non-filing husband have nearly $4k/mo disposable income on schedule J due to their low living expenses. However they pass the means test. Debtor's husband makes quite a bit more than Debtor.
Why is the debtor filing this 100% plan instead of paying it off directly and immediately? I asked them why they don't pay off the debt. Apparently, Debtor's husband wants to use his community income and community assets (money in his bank account) to buy more real property. I believe an additional unspoken benefit is that the bankruptcy case will deny Debtor access to revolving credit for the 5 year duration of the case.
Do you see a problem with this case? Will trustee object that debtor should use available cash to pay off the debt immediately rather than filing chapter 13? Will the trustee require debtor to pay off the debts in 3 years instead of 5 year?
-- Alik SegalAlik.Segal@gmail.com310-362-6157California Central District

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