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Expert: - 6/5/2006


Question
Dear Mark,  I recently filed a Chapter 13 BK. Prior to my Meeting of Creditor, I recieved a large selltlment from an car accident.  I want to use this money to pay my Secure Debtors only and then file a Chapter 7. Is this possiable?  

Answer
Well, this really depends on how your plan is set up, what you mean by paying your secured creditors (do you mean in full, or just the arrearages?), and many other things.  This is really beyond the scope of what I can answer on here because there are simply too many factors to analyze.  You can always dismiss the Ch. 13 and then pay the secured creditors, then re-file a new Ch. 7, but there may be repercussions for doing so.  You should really discuss this with your present attorney as they would have access to all the relevant information as to how is best to proceed.  Presumably you are in a CH. 13 because you have surplus income, so I also question whether you're even eligible for a Chapter 7.

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Mark J. Markus- California Bankruptcy Attorney

Expertise

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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