How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Roger Your Own Question
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31769
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
Type Your Bankruptcy Law Question Here...
Roger is online now
A new question is answered every 9 seconds

why would an attorney try to settle with a bank, rather than

Resolved Question:

why would an attorney try to settle with a bank, rather than file a chapter 13 bankruptcy?
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 8 years ago.
Settling a debt is much better that filing bankruptcy for credit purposes. Settling a debt will not affect your other loans/credit, and it won't effect your credit like bankruptcy - which will be a black eye for at least 7 years.
Customer: replied 8 years ago.
My only choices at this point are 7 or 13. Why would an attorney lean towards a 7 rather than a 13 at my age. Are their reasons for not doing a chapter 13 that should understand
and am not getting?
Expert:  Roger replied 8 years ago.
<p>A chapter 13 is a repayment plan (over 3-5 years), where a 7 is a complete liquidation. </p><p> </p><p>It may be that your attorney doesn't feel that your income would accommodate a 13. </p>
Customer: replied 8 years ago.
if bank modified loan it is doable. Wouldn't the court be the dicision maker on that?
Expert:  Roger replied 8 years ago.
<p>The lender has the right to decide whether to allow a modification. If the lender approves it, the bankruptcy court would have to sign off on it. </p>
Customer: replied 8 years ago.
last comment. You are saying it is up to the lender and not the court?? What if the lender does not accept any modification? And, if that is so how does anyone even get a chapter 13? and in that case I would have no choice but to file chapter 7. Is that correct??
Expert:  Roger replied 8 years ago.
If you file a 13, the court will order a repayment of this debt. If a 7 is filed, there will just be a complete liquidation.
Customer: replied 8 years ago.
bank has the right to demand full payment and get it (they do not have to budge at all) from the courts on a 13?
The issue is the colladeral the bank holds is worth 1/4 of what is owed. My partner who went bankrupt owes nothing on this loan now. It's all on me. Question is that if lender does not modify in the least, what is the point of a 13?
I am still not getting an answer any different than what I can read on line for free....
Expert:  Roger replied 8 years ago.
<p>Yes, the bank would be entitled to the principal - interest is usually waived. </p><p> </p><p>The lender is not required to accept less than what is owed. </p>
Roger and other Bankruptcy Law Specialists are ready to help you