What Is a Lien Strip? (Bankruptcy 13)

What Is a Lien Strip? (Bankruptcy 13)

Lien stripping allows a Chapter 13 debtor to remove a junior mortgage secured against the debtor’s real property. Lien stripping does not apply to first mortgages. First mortgages on residential real estate cannot be modified. Lien stripping is available only for...
What is a Proof of Claim?

What is a Proof of Claim?

A proof of claim is a document filed by a creditor for the right to payment as against the bankruptcy estate. Proofs of claims can be filed by a wide variety of creditors such as general unsecured creditors (credit cards, pay day loans, medical bills, etc), priority...
What is a Chapter 13 discharge?

What is a Chapter 13 discharge?

A Chapter 13 debtor is entitled to a discharge upon successful completion of all payments under his or her Chapter 13 plan. By the time of the entry of the discharge, the debtor would have already completed the terms of the Chapter 13 plan. Monthly payments over a 3-5...
Who is a Chapter 13 trustee?

Who is a Chapter 13 trustee?

A Chapter 13 trustee is an individual who is appointed by the U.S. Trustee’s Office to be the trustee of the bankruptcy estate of each person who files for Chapter 13 bankruptcy relief. Bankruptcy judges do not handle the day-to-day administration of cases. The...