Bankruptcy Law/Chapter 13

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Expert: - 1/7/2008


Question
I am three years into a chapter 13.  Last Sept. I was flooded out by hurricane Ernesto.  I lost everything and my auto were stolen (that case is still pending with the commonwealth attorney).  I also lost my job and was homeless for two months. I was given a deference of two months from my bankruptcy payments.  I obtain a parttime job at min wage while getting back on track.  Here it is 9 months down the road and I must catch up by converting to chapter 7, paying $1300 to catch up or go for a dismissal. I do not have the lum sums required.  My last trustee statement shows my balance less tha $2,500. If I go for the dismissal, can the creditors come after me?  Did they not write off this debt three years ago?

Answer
I am so very sorry to hear about all of your bad luck. I do hope that the new year of 2008 will bring a much better time for you. You certainly deserve better.

If you decide to go for dismissal, the creditors are entitled to come after you to collect what you owe. In fact, they will also be able to add on any interest that has accrued over the last 3 years, which could amount to a lot of money. The debts were not forgiven when you filed your case, only "stayed" pending the completion of your case. If you don't complete your case, you still owe them the money. Under all these circumstances, why wouldn't you opt for conversion to Chapter 7?

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Los Angeles Bankruptcy Lawyer Leon D. Bayer

Expertise

Leon Bayer has successfully represented clients in bankruptcy for over 30 years. He is frequently called upon by the media, the California Bar and other associations to provide insight and help educate attorneys on bankruptcy issues. If you or other readers want to keep up with my blog postings about life in and out of bankruptcy, you can follow my blog at http://www.bankruptcyblogger.org/ and my personal web site at http://www.debt-relief-bankruptcy.com and A Human Guide to Bankruptcy at http://www.thebankruptcyguide.net/ Leon also writes about bankruptcy law for Nolo, see http://www.nolo.com/law-authors/leon-bayer.html and his "Ask Leon" bankruptcy law blog column at http://blog.nolo.com/bankruptcy/

Experience

Leon is a Certified Specialist in Bankruptcy Law by the State Bar of California, and has been a practicing bankruptcy lawyer in Los Angeles, California for 33 years.

Organizations
National Association of Consumer Bankruptcy Lawyers, California Bar Association, Los Angeles County Bar Association.

Publications
Author, ?The Essentials Of Chapter 13,? Daily Journal Report, December 18, 1987.
Contributing Editor, Basic Bankruptcy, California Practice Handbook, Matthew Bender 1992, 1993.
CEB Consultant, CEB-Personal and Small Business Bankruptcy Practice in California, 2003.


Education/Credentials
B.A., J.D.

Awards and Honors
President, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory
Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000

MR. BAYER SAYS: The big banks and credit card companys have been working overtime for many years to undermine the Consitutional right of the American people to be able to claim bankruptcy protection. In 2005 the banking lobby successfully convinced Congress and the President to make the laws and proceedures more complicated, hopeing that it will stymie legitimate people from filing bankruptcy. They succeeded in gaining these complex new legal proceedures by greasing the legislative system with hundreds of millions of dollars in "campaign contributions." The good news for the American people is that while the new laws have made the proceedures needlessly complex to the point where inexperienced people can't help but trip over the maze of new rules and regulations, the process is still doable, especially with a lawyer who is well trained and experienced in this specialty.

Past/Present Clients
I have probably handled something on the order of about 15,000 bankruptcy cases thropughout my career.

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