This video is about what happens when you file Chapter 13 and you still have significant equity in your property. There are tests that you have to satisfy in order to get a discharge under Chapter 13, (where you’re making a monthly payment to a Chapter 13 trustee who will then distribute the money he or she collects to your creditors.)

You will have to prove that you’re going to pay at least as much to that Chapter 13 trustee over the life of your plan as you would pay if you were in a Chapter 7 case: this is called the best interest of creditors test. What we do is we take the value of your property; we deduct the secured claims; we deduct the amounts of the exemptions that you’re allowed to take under the applicable law; and whatever is left is the equity in your property that you effectively have to buy back from your creditors over the life of your plan.

This is a very important and useful tool so that you can keep your property and still get a discharge of your debt.

Related videos:

Should I remove my name from my parents’ bank accounts before filing bankruptcy?

Should I Reaffirm My Home Mortgage In Bankruptcy?
https://www.youtube.com/watch?v=Y9__8eHAWu8

https://www.youtube.com/watch?v=-lYUDXYR384
Thoughts from a Maryland Bankruptcy Lawyer

Ronald J. Drescher
Drescher & Associates, P.A
10999 Red Run Blvd Ste 205
Owings Mills, MD 21117
Phone: (410) 484-9000
Fax: (410) 484-8120
Rondrescher@Drescherlaw.com
http://www.Drescherlaw.com

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Practicing in Maryland, Delaware, Virginia, Pennsylvania