1. 6/13/15 1 Bankruptcy Basics For Realtors! Dave Gormley! Andrews Bongar Gormley & Clagett! SouthernMarylandLaw.com! The Chapters! The Other Chapters! Chapter 9 - Municipalities! Chapter 11 Reorganization! Chapter 12 - Family Farmers & Fisherman! Chapter 15 - Cross Border Cases! Chapter 7 - Liquidation! Chapter 13 - Adjustment of Debts! 2. 6/13/15 2 The Trustee & The Estate! The Automatic Stay! Priority of Creditors! Exemptions ! Discharge! The 341 Meeting of Creditors! Terms! 3. 6/13/15 3 Non Dischargeable Debts! Chapter 7! Restitution! Alimony & Child Support! Taxes and Debts Incurred to Pay Taxes! Student Loans! Debts for Willful or Malicious Injury of Person or Property! Debts for Injury or Death as Result of Driving Under the Inuence! Obligations in Divorce Proceedings! Debts Incurred by Fraud! The Chapter 13 Discharge or Super Discharge Allows for Discharge of:! Obligations in Divorce Proceeding! Debts for Malicious Destruction of Property! Debts Incurred to Pay Taxes! Type of Exemption! Dollar Amount! Pension! Unlimited! Household Goods & Furnishings! $1,000! Real or Personal Property! $5,000! Property of Any Kind! $6,000! Tools of the Trade! $5,000! Homestead Exemption! $21,625! Common Maryland Exemptions! 4. 6/13/15 4 Chapter 7! Eligibility! Individual, Partnership, Corporation! Filing Fee $335! No Prior Discharge in 8 years! Income Limits! Median Family Income! Family of 1- $59,055 2- $77,105 3- $87,924 4-$107,233 5-$115,33! The Process! PreFiling Class -Credit Counseling! The Petition! Trustee Documents! Post Filing Class - Financial Management! The 341 Meeting! The Discharge! 5. 6/13/15 5 Chapter 13! Eligibility! Individual or Unincorporated Business! Filing fee $310! Secured Debt Under $1,149,525! Unsecured Debt Under $383,175! The Process! The Petition & Plan! The Classes & Documents! The 341 Meeting! Conrmation! Payments! Discharge! 6. 6/13/15 6 Strip Of Second Mortgage! Chapter 13 Only! Motion To Value! "House worth Less than what is owed on 1st! Plan Completion and Discharge! Recording of Order With Land Records! Saving A Home! The Automatic Stay! 36 60 Months to Cure Arrears! Discharge of Unsecured Debt! The IRS Problem! 7. 6/13/15 7 Post Filing Short Sales! The Surrender Problem! Mortgage Debt Forgiveness Act! "Phantom Income! "The Insolvency Exception! The HOA Problem! The Zombie Property! The Sale Plan! Chapter 13! "Payment Plan! " "Nominal Plan Payment! " "Step Plan! "Trustee Hands Off! Chapter 7 ! "Preserve Exemption! "Trustee Control! 8. 6/13/15 8 Bankruptcy Resources! http://southernmarylandlaw.com/sitelogin! http://southernmarylandlaw.com/clients/! http://www.mdb.uscourts.gov/content/understanding-bankruptcy! http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics! http://www.irs.gov/pub/irs-pdf/p4681.pdf! http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-A ct-and-Debt-Cancellation!