West Palm Beach Chapter 13 Litigation and Settlement
A bankruptcy is a legal proceeding which allows you to get out of debt and get a fresh start. The bankruptcy process is governed by an act of Congress known as the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, and local rules of bankruptcy. The bankruptcy process also utilizes state laws to determine exemptions which vary from state to state and rights of parties within the proceeding.
Bankruptcy does not discharge most mortgages or liens. If the Debtor decides to keep his/her house or automobile, then payments must continue to be made. If the Debtor is facing a foreclosure or has had an automobile repossessed, then the Debtor may use a Chapter 13 to make payments over time to cure the past due payments and bring the loan current.
We are the only West Palm Beach bankruptcy attorneys approved & endorsed by the AARP Services Network. We represent and advise clients who are or might become involved in a lawsuit as a result of a dispute between one or more parties. One recent case involved our representing Wachovia Bank in a suit on a secured promissory note.
The creditor, Wachovia Bank, held a second priority mortgage on a debtor's property. The chapter 13 bankruptcy plan provided that the property would be surrendered in full satisfaction of the creditor's secured claim of $ 51,285. The Bank objected that the surrender would not satisfy its claim because the first priority mortgage holder filed a secured claim for $ 148,140 and the property was valued at $ 219,000. The court sustained the objection. The court concluded that the creditor held an allowed claim, and the surrender of the property may not have fully satisfied its claim. The court held that the creditor, to the extent its claim was undersecured, was entitled to file a general unsecured deficiency claim, which would share pro rata in any distributions to other unsecured creditors.
The above is designed to give you a brief summary of information and detail involved in filing for bankruptcy relief. Our job is to give you the best representation possible, while helping discharge as much debt and keep as many assets as possible under the law. Please contact one of our West Palm Beach bankruptcy lawyers at your earliest convenience for a free personal consultation to find out the best remedy for your situation, and to discuss your available options: 561.491.1200 or email us at Craig Kelley
Copyright © 2011 LexisNexis. All rights reserved.