Under chapter 13 bankruptcy, you can consolidate your debt, paying back consumer debt at as little as ten cents per dollar owed. Secured debts are paid based on fair market value -most cars, furniture, appliances jewelry etc.Mortgage arrears are paid 100%, as are domestic support obligations and recent tax liabilities.
Surrender Vehicle in Chapter 13 – Creditor allowed an unsecured deficiency balance
Northern District of Illinois - Eastern Division Chicago Bankruptcy Judge Squires recently ruled in the chapter 13 case of Linda J. Blanco, 06B 13223, where debtor tried to surrender a vehicle in full satisfaction of the claim owed. Judge SquiresThe Court held that "the Debtor may not surrender the collateral in full satisfaction of the debt to the Creditor. The Creditor is entitled to seek its available state law remedies, including its right to an unsecured deficiency claim after...