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Bankruptcy Law/Negotiating with Unsecured Creditors

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Expert: - 5/27/2009


Question
I am in year 4 of chapter 13 bankruptcy and found out that they extended my plan to 5 1/2 years. My lawyer has yet to call me back and doesn't seem to care when I do talk to him.

My questions are:

Can I have my lawyer shrink those 18 months into 6 months and just triple the set amount for payment?

or

Can I negotiate with the unsecured creditors and settle my debt with them while in chapter 13. Then once that is completed, send the rest of the agreed upon amount to the trustee (to get out early)? I was told if I paid off early, I would be 100% liable to unsecured debtors, however I don't know if the above idea is a way around this.

Answer
First of all, a Chapter 13 plan can only be a maximum of 5 years, so there's no way it was extended to 5 1/2 years.

You can always file a motion to modify your plan to increase or decrease payments, as long as you pay the required amount under the plan.

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Mark J. Markus- California Bankruptcy Attorney

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Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

Experience

Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

  • Which Chapter to File,
  • business bankruptcy,
  • chapter 7 bankruptcy,
  • chapter 11 bankruptcy,
  • chapter 13 bankruptcy,
  • Do You Need a Lawyer to File Bankruptcy?
  • Frequently Asked Bankruptcy Questions

    Also visit our Los Angeles bankruptcy blog for interesting articles and much more.



    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

    Publications
    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

    Education/Credentials
    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

    Awards and Honors
    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

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