《楊清泉律師專欄》SQUEEZING INTO CHAPTER 13 DEBT LIMITS(二)
楊清泉律師事務所
《楊清泉律師專欄》SQUEEZING INTO CHAPTER 13 DEBT LIMITS(一)
Liquidated debt means that the amount owed is easily known or determined. In the Obama example, the amount you owe on the lease agreement because of your personal guaranty is easily known. If there is one year left on the lease and Obama has defaulted for 3 months, you will owe 3 months of default plus one year of rent. On the other hand, if you are sued by Obama because you had an affair with Michelle and ran away with her to Hawaii for 2 months, the amount you will owe Obama for this indiscretion for damages is not easily determined. Hence, this kind of lawsuit where the amount of damages cannot be easily ascertained will not push you out of Chapter 13.
A non-contingent debt is definitely owed; whereas a contingent debt may or may not be owed depending on some other event happening which is necessary to fix liability. The Obama lawsuit against you is contingent because there has to be a court judgment favoring Obama as plaintiff which may not happen because you may be able to successfully defend yourself against the lawsuit. Hence, to fix liability against you, an event must happen first and that is Obama must get the court judgment against you.
What happens when you surrender property with secured debt after the Chapter 13 case is filed? Can you deduct the amount of debt for the property after surrender to squeeze you into the debt limits? The answer is NO because you determine the amount of debt as of the date of filing of the petition not to post-petition events (In re Hinds S.D. Fla. 2010).
Lawrence Bautista Yang is a graduate of Georgetown University Law Center and has been in law practice for thirty years. He specializes in bankruptcy, business and civil litigation and has handled more than four thousand successful bankruptcy cases in California. He speaks Mandarin and Fujien and looks forward to discussing your case with you personally. Please call (626) 284-1142 for an appointment at 1000 S Fremont Ave Bldg A-1 Suite 1125 Unit 58 Alhambra, CA 91803.
Liquidated debt means that the amount owed is easily known or determined. In the Obama example, the amount you owe on the lease agreement because of your personal guaranty is easily known. If there is one year left on the lease and Obama has defaulted for 3 months, you will owe 3 months of default plus one year of rent. On the other hand, if you are sued by Obama because you had an affair with Michelle and ran away with her to Hawaii for 2 months, the amount you will owe Obama for this indiscretion for damages is not easily determined. Hence, this kind of lawsuit where the amount of damages cannot be easily ascertained will not push you out of Chapter 13.
A non-contingent debt is definitely owed; whereas a contingent debt may or may not be owed depending on some other event happening which is necessary to fix liability. The Obama lawsuit against you is contingent because there has to be a court judgment favoring Obama as plaintiff which may not happen because you may be able to successfully defend yourself against the lawsuit. Hence, to fix liability against you, an event must happen first and that is Obama must get the court judgment against you.
What happens when you surrender property with secured debt after the Chapter 13 case is filed? Can you deduct the amount of debt for the property after surrender to squeeze you into the debt limits? The answer is NO because you determine the amount of debt as of the date of filing of the petition not to post-petition events (In re Hinds S.D. Fla. 2010).
Lawrence Bautista Yang is a graduate of Georgetown University Law Center and has been in law practice for thirty years. He specializes in bankruptcy, business and civil litigation and has handled more than four thousand successful bankruptcy cases in California. He speaks Mandarin and Fujien and looks forward to discussing your case with you personally. Please call (626) 284-1142 for an appointment at 1000 S Fremont Ave Bldg A-1 Suite 1125 Unit 58 Alhambra, CA 91803.
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