Exam 19: Bankruptcy and Debt: Understanding Hardship Discharge, Lien Stripping, and Cramdowns

Larry filed for Chapter 13 because he was at risk of having his car repossessed. Larry has been separated from Connie for two years and has four years left on his bankruptcy plan. While Larry and Connie were together, she co-signed on the car loan because she had better credit than Larry and was offered a lower interest rate. The bank calls Connie daily demanding payment.

Why is it likely that a debtor won't seek to cramdown the mortgage on an investment property?

Non-dischargeable debts are included in a hardship discharge.

Can a debtor complete a plan in twenty-nine months?

A wage earner's plan is the term referred to:

In a Chapter 13, credit counseling and financial management classes aren't required.

In Chapter 13, if the debtor can't afford the mortgage payments, can the debtor seek to "avoid the lien" pursuant to §522?

A Chapter 13:

The plan should be filed in a Chapter 13 case _____

What is required for a hardship discharge?

What are the time restrictions to file a motion for cramdown of a car in a Chapter 7 case?

What is the difference between lien stripping and a cramdown?

How is the length of the payment plan determined in Chapter 13?

Bruce's house is worth $315,000 and the first mortgage has a balance of $285,000. His second mortgage has a balance of $55,000. If he were to lien strip, the results would be:

A hardship discharge can be best described as

Jenny is filing for Chapter 13, and the lawyer mentioned to her cramming down the car loan. She purchased the car on June 26, 2020. She can cramdown on

Whether in a Chapter 7 or Chapter 13, payments received by creditors are based on

The length of a Chapter 13 plan is based on

A Chapter 13 lasts ____________.

The debtor has an outstanding car loan in the amount of $17,300, and the car has a fair market value of $10,000. The debtor reduced the car loan to $10,000. This is an example of