"California Convert Chapter 13"
In the past, many debtors in California bankruptcy filed Chapter 13 when past due on home their mortgages. In a chapter
7 case, payments must be brought current to retain possession. In a Chapter 13 case, once mortgage payments are
brought current through trustee payments (based upon priority assigned to particular debts), many debtors sought
conversion to discharge all remaining debts through Chapter 7.
| 11 U.S.C. §348(f)(2): "If the debtor converts a case under chapter 13 of this title to a case under
another chapter under this title in bad faith, the property in the converted case shall consist of the
property of the estate as of the date of conversion" |
The California Bankruptcy Courts adopted new statutory limits (dollar amounts) within Title 11 of the U.S.
Code. Section 109(e) - the allowable debt limit for unsecured debt is increased to $307,675. The allowable
debt limit for secured liabilities is increased to $922,975. The minimum aggregate claims need to commence an
involuntary petition under Section 303(b) is increased to $12,300. Exemptions provided by Section 522 are also
increased. The maximum value of homestead equity that may be claimed is increased to $18,450. Other exemption
increases include paragraphs (2) through (8). Luxury goods and services obtained within 60 days before filing
are nondischargeble, if exceeding the newly amended amount of $1,225. These amounts are adjusted automatically
by California bankruptcy courts every three years.
Back to California Bankruptcy words & phrases.
|
