The following questions and answers were submitted to 713Training.Com either at a teleconference or by email during this past week. The best of the best were chosen to be published below. The answers are provided by Victoria Ring who is not an attorney. Therefore, the information provided in this material is for training purposes only and no whole or part should be regarded as legal advice.
DEAR VICTORIA
I attended the Chapter 13 Cram Down and Strip Down teleconference. In the materials I received there were 33 pages of pleadings that provide samples for the Strip Down procedure. However, there are no pleading samples for first mortgage cram downs. Where do I get this information?
ANSWER
The attorney said that in the case of a cram down, the Trustees have not required her to file a Motion. The Motion is only required for stripping the second since it is an elimination of debt. However, in a cram down, when the debt is not being eliminated but proposed to be paid at a market value amount, this is simply proposed within the Chapter 13 Plan itself.
If there are no objections from the mortgage bank, the cram down is allowed in hardship situations. The key is the word HARDSHIP. If the debtors can afford to pay more than the base market value, the court may require them to pay more. This is why the balancing of Schedule I and J are so important when the petition is first filed.
I sincerely hope this helps to address the issue. I appreciate you coming to our teleconference and posing this question. In order to find the answer to your question I had to do some research; and along the way, I also learned something new. Thank you.
DEAR VICTORIA
Client owes income taxes for 2007. They will be dischargeable April 15 2010 right? What if client filed for an extension in 2007 and did not have to pay until October 2008? Are they still dischargeable in April 2010? Or do we have to wait until October 2010?
ANSWER
Are you asking if you have to wait until October 2010 to file bankruptcy? Regardless, taxes are NOT dischargable at any time. They are provided for on Schedule E since they are a PRIORITY claim. If the client has been making payments on their tax debt since October 2008, you would list the payment on Schedule J in a Chapter 7. However, if the case is a Chapter 13, the monthly payment for the federal, state and county will need to be figured into the Chapter 13 Plan payment.
There are tax attorneys who specialize in working with the IRS or state tax departments to reduce tax debt, but in a bankruptcy, taxes are not discharged regardless of how old they are.
DEAR VICTORIA
I just learned something cool. I do not know if you have them in Colorado, but here in Utah, we have a furniture store called RC Willey. The Utah attorney said the following:
The angle I used with RC Willey is to coincidentally file just after they get a judgment because at that point their PMSI secured interest is gone. I file before they record the judgment as a lien on real property. I just did this a little bit ago and the debtor was able to keep the items because the secured interest was gone and no new lien was filed on her home.
ANSWER
Excellent. Thank you for sending the information so that I can publish it for others to learn from.
DEAR VICTORIA
I plan to attend more teleconferences and order additional training materials when my financial situation improves. Currently, I am unemployed and unable to jump aboard like I would want to at this time. But, I would like to thank you for suggesting that I connect with the VBA after the teleconference ended; she has been very helpful thus far, and I anticipate great opportunities to network with other virtual bankruptcy assistants in the future. Enjoy your Christmas and best wishes for a healthy and prosperous New Year.
My email address so that other VBAs can contact me is: hopesuz@aol.com
ANSWER
Thank you so much for your kind email. I understand what it is like to be unemployed. But you can use this time to research and improve your knowledge in the area of bankruptcy. Be sure to visit the links page at http://www.713attorney.com/links and this will provide you with a good starting point. It could take months to go through these links so enjoy! You will not need to spend a penny.
TRAINING IN CRAM DOWNS AND STRIP DOWNS OF MORTGAGES
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