bornfree2
Here is a succinct explanation of the differences between chapter 7 and 11.
Chapter 13 is a much more awesome tool than chapter 11. A trustee distributes the available funds based upon fixed rules regarding income and non-exempt assets. Meanwhile, the unsecured creditors have next to no say in it. There is no voting by unsecured creditors unlike chapter 11. Secured arrears can be resolved in 60 months without regards to the secured creditor's wish to resolve the arrears much quicker than 60 months. Chapter 13 legal fees are much cheaper than chapter 11.
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Chapter 13 Debt Limit Increase - Bill signed today
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Originally posted by justbroke View Post(Perspective: perhaps this means nothing for those living in States or Cities where the median home value is under $1,000,000 ... but once you get into major West Coast cities, these people were pushed into Chapter 11s which are not cheap and not easy. )
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bornfree2
I don't think you get it. Increasing the debt limit for Chapter 13 SAVES the individual consumer a ton of $$$$ and heartburn. As to lawyers, if you read my post, I make MORE money by putting the client into a Chapter 11, not the Chapter 13. My first concern is for the client ergo since a Chapter 13 is cheaper, easier for a consumer to get through and poses additional benefits over a Chapter 11 for the consumer, there is nothing but "good" coming from the increase in the debt limit.
One more item, next week I will actually be saving my client money as it relates to paying creditors. The IRS will not be getting interest on its priority claim - something he/she would have had to pay if he/she was forced into a Chapter 11.
Now, if you really think China benefits from this. . .
Des.
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Originally posted by despritfreya View Post
Already have a client who has been waiting and waiting for this increase. He/she is coming in next week to review what we can now accomplish for him/her in the much less expensive Chapter 13.
Des.
So the benefit flow is > China, bk lawyers, trustee, bankster, debtor (remains a debt slave to pay them all)
China has been winning for a very long time...more bankruptcies means more cheap assets and neighborhoods to buy up. The thing is they are stealthy silent behind the scenes so its hard for the sleepy herd out there to ever connect the dots. Super smart economic war going on.
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Originally posted by bornfree2 View PostAnother gift to banksters and China
What this means is a substantial reduction in overall cost for many debtors. Prior to this increase, those who needed to reorganize were forced into a Chapter 11.- My fees for a rather "simple" Chapter 13: Approximately $4,000 with $2500 due prior to filing - balance in the Plan.
- My fees for a more complicated Chapter 13: Someplace between $6,000 and $8,000 with $2500 due prior to filing - balance in the Plan.
- Court filing fee for a Chapter 13: $313
- My fees for an individual (consumer) Chapter 11: $7,000 retainer and probably another $10,000 to $15,000 paid through the Plan.
- Court filing fee for a Chapter 11: $1,738.
In addition, forcing a non-business savvy consumer into a Chapter 11 has its own problems since a Chapter 11 debtor acts as the trustee and has the duties of a trustee to account for estate assets and individually pay creditors. Very daunting and time-consuming to those who are not business oriented or just do not want to mess with the detail required.
Already have a client who has been waiting and waiting for this increase. He/she is coming in next week to review what we can now accomplish for him/her in the much less expensive Chapter 13.
Des.
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Great news. A lot of mega size judgment buyers are probably crying today. Having large student loans won't inhibit the ability to file CH13 anymore. Credit card companies with a POC of $25000 will get $15 monthly checks or no check at all due to not meeting trustee minimums. They were benefitting from the debtor having a giant judgment or too much debt so locked out of CH13.
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Originally posted by bornfree2 View PostAnother gift to banksters and China
This value is known as the 109(e) limit for Chapter 13s.
To me this means easier access to bankruptcy filings for people with > $1,395,875.00 in debt. This is approximately a $1.4M increase to the maximum allowed Chapter 13. This is a benefit to the debtors only!
(Perspective: perhaps this means nothing for those living in States or Cities where the median home value is under $1,000,000 ... but once you get into major West Coast cities, these people were pushed into Chapter 11s which are not cheap and not easy. )
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Chapter 13 Debt Limit Increase - Bill signed today
Today, President Biden signed Senate Bill 3823 that increased the debt limit for chapter 13 to $2.75 million of noncontingent, liquidated debt without regard to the debt being unsecured or secured. This change is effective for two years, unless a new law is passed to extend or make the provision permanent.
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