Tag: secured debts

chapter 13 debt limits

Chapter 13 Debt Limits (2026 update)

Posted by Hale Andrew Antico on

Chapter 13 Debt Limits (2026 update)

Debt Limits in Chapter 13 Bankruptcy

2026 Update: Chapter 13 debt have been in a state of flux, and adjusted again in April 2025. Note that they were temporarily higher than normal, but then returned to normal, and now get a bump. Why? There was a law which, among other things, temporarily increased the Chapter 13 debt limit to $2.75 million dollars. This limit was for both secured and unsecured debt combined. It was about double what the debt limits had been, and was extremely helpful for Los Angeles residents who have a second property and mortgage debt that exceeds $1.5 million. The Chapter 13 debt limit increase was temporary and sunseted last year. There is chatter it may increase again back up to this high number, but this is speculative at this stage. See below for the current figures, which updated in April 1 2025, good for 3 years.

Continue reading “Chapter 13 Debt Limits (2026 update)” →

Key in hand for car or house

Chapter 13 Mortgage & Car Payments

Posted by Hale Andrew Antico on

Chapter 13 Mortgage & Car Payments

Introduction: Understanding Chapter 13 & Home and Car Payments as Secured Debts

Filing for Chapter 13 bankruptcy is a big step – a commitment to a repayment plan designed to get you back on track financially. It allows you to catch up on debts while keeping your important assets, secured debts like your home and car. But what happens to those payments during this process?

If you’re wondering about mortgage payments in Chapter 13 or how car loans in Chapter 13 are treated, you’re not alone. This guide will break down everything you need to know, offering clarity and peace of mind as you navigate this journey.

Continue reading “Chapter 13 Mortgage & Car Payments” →

Welsh is a gift from the 9th Circuit for every bankruptcy attorney

Chapter 13, Social Security, & Luxury Debt: A Case you Must Know

Posted by Hale Andrew Antico on

Chapter 13, Social Security, & Luxury Debt: A Case you Must Know

Why Welsh is the greatest Chapter 13 case ever

Every now and then, courts pass down a ruling on a subject that is so practical and a decision so favorable to consumer debtors that it’s as if the heavens opened, angels sang, and cherubim hand-delivered a gift to attorneys far and wide on the wings of a unicorn. The Ninth Circuit’s In re Welsh is such a case.

Introduction

On this, the ten-year anniversary of In re Welsh, 711 F.3d 1120 (9th Cir, 2013), it seems relatively few attorneys know about this ruling, and how it can benefit debtors. Or at least, far fewer bankruptcy lawyers know about this than should. Yet we all should have it tattooed on the inside of our eyelids.

So, with the goal of getting the word out there, and celebrating a decade of relative anonymity, here’s a loud and triumphant commemoration as a monument to one of the greatest debtor cases in bankruptcy jurisprudence, and all of its varied folklore.

Continue reading “Chapter 13, Social Security, & Luxury Debt: A Case you Must Know” →

Chapter 7 reaffirmation agreement

Chapter 7 Reaffirmation Agreement

Posted by Hale Andrew Antico on

[vc_row][vc_column][vc_column_text]

Chapter 7 Reaffirmation Agreement

What is a reaffirmation agreement in Chapter 7

A Chapter 7 reaffirmation agreement is where the evil creditor is trying to get you to owe money after the bankruptcy is over. This is of course a bad thing. But there’s one problem: in some cases, you have to sign the reaffirmation agreement. Note: one advantage of Chapter 13 bankruptcy is no need to reaffirm debts.

[/vc_column_text][vc_message]2023 Update: Ride-through is back in California bankruptcy, which significantly impacts the requirement to sign a reaffirmation agreement. This is due to the passage of SB 1099, which has a number of changes in California law to help debtors filing bankruptcy.[/vc_message][vc_column_text]

What does it mean to reaffirm a debt?

To reaffirm a debt is to agree with the lender that you’ll continue owing a debt. You’re basically saying, “I’m good for it.” You’re giving the creditor the power to maybe take things from you and sue you if you ever break the agreement.

Continue reading “Chapter 7 Reaffirmation Agreement” →

lien in bankruptcy cars

Liens in Bankruptcy: The Ultimate Guide, Explained

Posted by Hale Andrew Antico on

Liens in Bankruptcy: The Ultimate Guide, Explained

Liens in bankruptcy typically survive and don’t get affected by the discharge. However, there are exceptions where the lien can be reduced or even eliminated. I try to break these down in simple terms that are easy to grasp. But don’t be fooled: bankruptcy is more complicated than you think. Get a consultation with an attorney, and make sure you check out my list of 12 crucial tips to do or avoid before filing bankruptcy.

What is a Lien in Bankruptcy?

A lien is a security interest of a debt that encumbers a thing owned by the borrower until the debt is paid. One common example is a car and the car loan. The borrower who “owns” a car can’t just sell the car outright. He has to pay the debt secured by the lien against the car first. Then, once the debt is paid, the lien is satisfied and removed.

Section 101(37) of the Bankruptcy Code defines “lien” as:

charge against or interest in property to secure payment of a debt or performance of an obligation.

How does bankruptcy affect a lien? The General Rule

The general rule for liens in bankruptcy (and there are exceptions) is that bankruptcy doesn’t affect a lien at all. If a debt is secured by a lien and collateral, if you wish to keep the asset, then that debt will survive the bankruptcy. You don’t get a free house or car in bankruptcy. Here, let me put that in a fancy quote because it is so important:

You don’t get a free house or car in bankruptcy.

– Attorney Hale Andrew Antico

Continue reading “Liens in Bankruptcy: The Ultimate Guide, Explained” →

ride-through california bankruptcy

Ride-Through Back in Calif Bankruptcy

Posted by Hale Andrew Antico on

Ride-Through Back in California Bankruptcy

Ride-through is back in California bankruptcy. This is big news for 2022 and beyond. It restores the right of someone in bankruptcy to be free of personal liability on a car loan in the event of a future default. To be clear, you don’t get a free car in bankruptcy. But if you don’t reaffirm the car debt, and stop paying the car after the bankruptcy discharge resulting in a repo, you won’t owe the deficiency balance.

Continue reading “Ride-Through Back in Calif Bankruptcy” →