Terrance Scott Leeders's Answers

How many month behind in your mortgage are you consider delinquent if in chapter 13 in state of Illinois

Any delinquency can be grounds for the lender to bring a motion to dismiss your bankruptcy case, and/or bring a motion to modify the automatic stay to take the loan outside of bankruptcy to start a foreclosure. You can request verification of the delinquency, and the lender must provide that if you feel that you are current on your payments. Having proof of all payments (receipts, canceled checks etc) from the start of the bankruptcy case can help prove your case to the judge and creditor....

Will a Corporate Bankrupcy affect my personal credit rating in NC?

The thing you need to watch for is if you had signed any personal guarantees for the debts. If you have, they would remain your responsibility. Any payment history would then be transferred to you. If they just reviewed your personal credit history to help them make the decision to extend credit, that will not affect personal credit. (Lenders checked my history too!) Also, if you pledged any collateral for a corporate debt, such as a home equity loan, that would impact your credit...

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Converting from a ch 13 to a 7?

If your income has decreased to the point that you would pass the chapter 7 means test, and you have no disposable monthly income left after paying for necessities, then you may be a candidate for chapter 7 conversion. The court can liquidate any un-exempt assets if there is any equity, which you indicate there is not. You can choose to reaffirm the secured debts for house and car, so that you can keep them after the conversion. As long as you have not filed a chapter 7 in the last 8 years,...

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If I'm currently in ch 13, can I sell my $1,000 vehicle in TX?

You need permission from the court and trustee in your case to sell off assets. You need to bring a motion to sell. If this is your only vehicle, you can ask permission to keep the funds to purchase something else. Otherwise, the court sometimes requires you to put the funds toward your bankruptcy plan payments. For other useful bankruptcy information and commentary, view my bankruptcy blog at

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Can a person File a chapter 13 Bankruptcy when unemployment is there only Income? Chapter 7 was filed in April2005 and discharge

While you cannot file solely on unemployment, you can use any source of household income to make a plan feasible. Since unemployment runs out, you cannot show the court that you will be able to complete a 36-60 month repayment plan. You can use spouse's income, government assistance like social security, pensions, contributions from family, rental income etc. to show enough income to fund a chapter 13 plan. You can file individually, and still use the others income in your budget. But, you...

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How do I handle large credit card debt incurred in 5 week by spouse who was under physical distress?

If you file for bankruptcy, the lender is likely to object for recent usage. I usually advise clients to make minimum payments on the account, to show the lender that the debt wasn't just run up to discharge in a soon to be filed bankruptcy. The code allows for the debt to be non-dischargeable if over $600 in the 90 days before filing. Therefore, since it was extremely large, i would suggest waiting to file for a year, and make the minimums on it until then. That would help show the lender...

My chapter 13 is deing dismissed 4 none payment but my co-debtor didnt know i filed can he file on get the car ?

if the co-signer on the loan qualifies for chapter 13, they can definitely file to get the car back. The issue is if they can file soon enough. Normally, once a car is repossessed, a case must be filed within 21 days before the car is sold. If sold, it will be too late to get it back. Often, it is not advised to file a chapter 13 just to get the car back, as the attorneys fees can add a bunch to the repayment plan proposed to the court. Since the car depreciates, it's not often worth it to...

Chp. 7 filed and discharged jan 2009, why is property i surrendered in the bankrupty still listing me as deed holder

Just by indicating you want to surrender, does not transfer the title back to the lender. The lender will need to foreclose on the loan, going thru an actual foreclosure process. You can also sign a deed in lieu of foreclosure if the lender is agreeable to that and there are no other liens. You still can sell, or quit claim it to someone else if they are interested in taking over responsibility. The bankruptcy just removes your responsibility to pay on the loan. For more bankruptcy...

Which would higher my fica score more? a chapter 7 on all my debt or a chapter 7 on most of it with some listed as a charge of

How each creditor reports it should be updated correctly. The fact that you filed bankruptcy will override any individual report. You need to make sure that you pay your monthly obligations timely. Your score is based on numerous things....your education level, the length of time at your current residency, your payment history, your open accounts, as well as factual items such as bankruptcy and judgments. I have seen my clients' scores increase by an average of 50-75 points if they stay on...

I am currently in Chapter 13 (for a little over a year). I would like to flip C13 to a Chapter 7. Is this possible.

You have an automatic right to convert to Chapter 7 assuming you have not received a discharge in chapter 7 in the last 8 years. Keep in mind, for any secured debt, you would either need to work something out with the lender to catch up on the payments, sign a reaffirmation agreement with the lender revising your payments (tacking the arrears/default to the end) or you can surrender the items. Be sure to have had a change of circumstances, as your income v expenses will still be reviewed to...