Debt Discharged in Prior Chapter 7 Isn’t Counted in Later Chapter 13 Eligibility
n an issue where the courts are divided, Bankruptcy Judge Ann M. Nevins of New Haven, Conn., ruled that personal liability on a secured debt that was eliminated in a prior chapter 7 discharge is not counted toward the debt limits in a subsequent chapter 13 case.
The decision by Judge Nevins was informed in part by a decision from the Ninth Circuit Bankruptcy Appellate Panel on July 30. Washington v. Real Time Resolution Inc. (In re Washington), 18-1206, 2019 BL 284935, 2019 Bankr. Lexis 2389, 2019 WL 345052 (B.A.P. 9th Cir. July 30, 2019).
In a so-called chapter 20 case, the BAP held in Washington that personal liability extinguished in a prior chapter 7 discharge is not resurrected and is not a claim to be paid in the debtor’s subsequent chapter 13 case.
Related Stories
April 30, 2020
Chapter 13 plans can be extended up to 7 years 7 year Chapter 13. An…
April 29, 2020
Loan modifications under CARES Act. The law firm assists with loan modifications and mortgage relief…
April 18, 2020
Small business owners qualify for chapter 7 bankruptcy. The Coronavirus aftermath is destroying small businesses….
April 18, 2020
Glossary of Credit Terms 2-percent rule A rule of thumb to see if refinancing a…
Posted in: Debt & Bankruptcy
April 17, 2020
STEPS IN A BANKRUPCY CASE Mandatory Credit Counseling You must obtain a certificate from an…
Posted in: Debt & Bankruptcy
April 15, 2020
Convert a Chapter 13 to a Chapter 7 A chapter 13 client (currently in a…
April 14, 2020
April 14, 2020
How to file a bankruptcy book. This book discusses the “nuts and bolts” of getting a…
April 30, 2020
Chapter 13 plans can be extended up to 7 years 7 year Chapter 13. An…
April 29, 2020
Loan modifications under CARES Act. The law firm assists with loan modifications and mortgage relief…
April 18, 2020
Small business owners qualify for chapter 7 bankruptcy. The Coronavirus aftermath is destroying small businesses….
April 18, 2020
Glossary of Credit Terms 2-percent rule A rule of thumb to see if refinancing a…
Posted in: Debt & Bankruptcy
April 17, 2020
STEPS IN A BANKRUPCY CASE Mandatory Credit Counseling You must obtain a certificate from an…
Posted in: Debt & Bankruptcy
April 15, 2020
Convert a Chapter 13 to a Chapter 7 A chapter 13 client (currently in a…
April 14, 2020
April 14, 2020
How to file a bankruptcy book. This book discusses the “nuts and bolts” of getting a…