JLcpa
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| Posted: 25 May 2011 at 09:14 | IP Logged
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On October 3, Morton filed for relief under the rehabilitation provisions of Chapter 13. Morton’s primary goal was to use the provisions available in Chapter 13 to catch up a four month arrearage on his home mortgage. Six months after filing, Morton was unable to make the payments proposed in his plan and Morton’s case was converted to chapter 7. Which is correct?
A Morton will be denied a discharge if he has received a chapter 7 discharge within the past 8 years.
B If Morton has not previously filed for bankruptcy protection, his mortgage debt will be completely discharged.
C Morton will be denied a chapter 7 discharge due to his failure to comply with his own chapter 13 plan.
D If Morton was married at the time he filed his chapter 13 petition, his petition would be dismissed unless his wife joined the filing.
Ans B
A common use of chapter 13 bankruptcy is curing of a home mortgage arrearage. Typically, if an individual fails to make the payments outlined in his/her bankruptcy plan, the case will be converted to chapter 7 (although it could simply be dismissed by the court) and all the debtor’s dischargeable debts (such as a home mortgage debt, credit card debt, medical bills) will be discharged (unless the debtor has received a discharge within the eight years prior to conversion of the chapter 13 case to chapter 7). An individual who is married may file a joint petition with his/her spouse, but is not required to do so.
Isn't Option A also correct?
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Jas, Jersey City, NJ
AUD- 18 Nov 2009- 86
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Topic: Chapter 7- Discharge of debts
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