Many of our clients are elderly, and we file their Chapter 13s to protect their paid off home and repay creditors with lower interest and no late payments. Occasionally, a husband or wife will pass away during the case. In this case, the wife passed at the end of the case, after they completed the payments, but before completing the requirement of certifying that she had no outstanding Domestic Support Obligations. You would think that it would “go without saying” that a 78 year old grandmother was not under any court order to pay support, but that is the law. Since the wife was deceased, Geraci Law attorney Megan Hayes obtained an affidavit from the surviving spouse, and when the Clerk marked it a “non-conforming document”, the kindly bankruptcy judge issued an order on the Clerk to make it conform, and both the surviving spouse and the deceased debtor received their discharge. I am very proud of all the 76+ Geraci Law attorneys, not to mention our fine paralegals, for this kind of service to our clients. As Shakespeare put over 400 years ago in in Measure for Measure, which was all about lawyers, “Good counselors lack no clients”!
Your politicians made changes to the bankruptcy laws years ago to protect car finance companies. They seem to think that making it hard for consumers will help their finance companies. Although the politicians must have gotten some big contributions from GM’s captive finance company, GMAC, it didn’t stop General Motors from filing bankruptcy, did it? No!! So even though your Senators and Congress people try to make it hard on us, you can still get help as a working person if you are overwhelmed with debt because of job loss, illness or whatever life brings. Car loans are now going 60 to even 84 months. Used car rates can be 21%. So if you have a high interest car loan, and the car is worth less than you owe on it, here’s the deal in Chapter 13 bankruptcy:
1. If your bought the vehicle more than 910 days (2.5 years ago), you can offer to pay the actual value at prime rate plus 2%.
2. If you bought the vehicle less than 910 days, you have to pay the remaining loan on it, no reduction in value, but can still pay less interest.
Either way, you get a better deal, and still get to handle your other debt, and pay your vehicle ahead of other debts, so the car gets paid off faster, while the other creditors wait. Have a co-signer? Only way to protect the co-signer is pay the loan as written, either inside your bankruptcy, or “outside”. Geraci Law restructured or discharged over $1.5 billion in debt last year. Visit us at http://www.elimadebt.com