#Chapter13

Dec 18, 2014
4 min

Congress Extends the Income Exclusion for 1099...

Congress Extends the Income Exclusion for 1099 ‘Forgiven’ Mortgage Debt to Tax Years 2015 and 2016 For a more detailed discussion on tax debt and other tax resolution issues, be sure to read Wartchow Law’s Tax Blog. On December 18, 2015, Congress extended certain tax breaks to apply for both tax years 2015 and 2016, including the income exclusion for forgiven mortgage debt on a qualified principal residence. “Forgiven” or “cancelled” mortgage debt on a Form 1099-C occurs usua

Lynn Wartchow

Jul 17, 2014
3 min

Chapter 13

More on Divorce and Bankruptcy...

More on Divorce and Bankruptcy: How do Child Support, Spousal Support (Alimony / Maintenance) and Property Settlements Impact either Chapter 7 or Chapter 13 Bankruptcy? How certain payments owed under a divorce or family law decree—including child support, spousal support (also called maintenance or alimony) and even property settlements or cash equalizers— may impact your bankruptcy filing depends on whether you are the recipient such payments or the obligator of such paymen

Lynn Wartchow

Jun 9, 2014
2 min

Homeowners/Condo Associations

Bankruptcy Options if You Are Behind on Condo / Townhome Assessments

Behind on your monthly HOAs, late fees or special assessments owed to your homeowner’s association? Under Minnesota statute, most defaulted amounts due to a homeowner’s association create an automatic lien against the individual unit, which means that these amounts remain secured against the condo or townhome even after bankruptcy. Because of this statutory lien, the association can collect against a defaulting owner either by way of initiating a lawsuit for personal liabilit

Lynn Wartchow

May 20, 2014
2 min

Chapter 13

Converting from Chapter 13 to Chapter 7: What’s Involved and Why Would You Convert?

Life inevitably changes and things happen that may cause a chapter 13 debtor to no longer need or afford their original chapter 13 plan. A job loss, other reduction of income or unanticipated increase in expenses can all be reasons for a debtor to lose their ability to continue making the chapter 13 plan payments. If the chapter 13 payments become unfeasible and, assuming the debtor qualifies, a chapter 13 case can be converted to chapter 7 for an immediate discharge. Typical

Lynn Wartchow

Jan 22, 2014
4 min

Chapter 13

How the 2014 Changes to Regulation Z (TILA) and Regulation X (RESPA) Impact Homeowners...

How the 2014 Changes to Regulation Z (TILA) and Regulation X (RESPA) Impact Homeowners who are in Default on their Mortgage or in Bankruptcy The Consumer Financial Protection Bureau (CFPB) is the federal agency that oversees and sets the standards and regulations for how home mortgages are serviced by lenders, particularly in the wake the post-2010 mortgage crisis. Amongst its many duties, the CFPB is tasked with creating and enforcing regulations on how home mortgages are se

Lynn Wartchow

Aug 27, 2013
2 min

Homeowners/Condo Associations

Condo, Townhome and HOA Association Liens in Minnesota

In Minnesota, if you have unpaid condominium or townhome association assessments—which are often called “HOAs”—these unpaid amounts operate automatically as a lien on the property under Minnesota Statute § 515B.3-116(a), which is part of the Minnesota Common Interest Ownership Act. What a condo or townhome association lien typically means for the homeowner is that you cannot get out of paying past due HOA assessments while you own the property. Further, it means that the prop

Lynn Wartchow

Jun 25, 2013
2 min

Chapter 13

Converting from Chapter 7 to Chapter 13: What’s Involved and Why Would You Convert?

Conversion to Chapter 13 from Chapter 7 isn’t a death sentence for your bankruptcy case (see Chapter 13: Not Always a Gloomy Diagnosis in Bankruptcy). Perhaps a Chapter 7 was filed underestimating your income and you didn’t actually qualify for Chapter 7 for this reason. Or perhaps you realize after filing your Chapter 7 that you have mortgage arrears that you wish to repay in order to save your home from foreclosure, which is something that you cannot do in Chapter 7. Or per

Lynn Wartchow

Sep 21, 2011
2 min

Chapter 13

Popular misconception: Chapter 13 is not necessarily a 100% repayment plan

While Chapter 13 is in many ways a debt repayment program, it is not necessarily a 100% repayment plan. This is a surprisingly common misperception that I’ve heard a few times from clients who have been advised to file Chapter 13 rather than Chapter 7. Yes, it’s true that some debts will be repaid 100%, yet usually these are the types of debts that you actually want to have paid in full: arrears on your home mortgage or income taxes that cannot be discharged in any form of ba