Chapter 13 bankruptcy allows individuals with regular income to develop a plan to repay all or part of their debts over a period of three to five years. Chapter 13 bankruptcy is often used when an individual is not eligible to file a Chapter 7 because their income is too high, they have nonexempt property they want to keep from liquidation or they need to cure a mortgage default. In all cases, Chapter 13 bankruptcy is likely a better optionRead more
Chapter 13 Bankruptcy Can Be The Better Choice
Many people say they would pay their debts if they could, but when given the chance to do that through a Chapter 13 bankruptcy plan they sometimes balk. But if you don’t qualify for a Chapter 7 bankruptcy you can still achieve the same discharge of debt after a payment of at least some of the debt over time. Unfortunately, those who choose to not file Chapter 13 bankruptcy sometimes turn to the debt consolidation programs seen on late-night television.Read more
Honesty in Bankruptcy Is The Best Policy
The vast majority of people who file bankruptcy are completely honest and forthright in providing accurate and complete information. Even if important information does turn out to be missing or inaccurate it’s most often a result of an honest error. But it’s still important to remember that filing for bankruptcy is a serious legal process that requires complete and thorough disclosure of all financial information. Bankruptcy laws mandate that debtors fully disclose all their assets, liabilities, income, expenses, and recentRead more
In the Face of Foreclosure
Given the current economic uncertainties and the end of many pandemic related programs preventing foreclosure, many people are again facing the threat of foreclosure of their homes. Chapter 13 bankruptcy can be a powerful tool to help people retain their property. In most cases I find Chapter 13 to be a far better option than the typical mortgage modification offered by mortgage lenders. Those mortgage modifications, even if approved, can lead to people paying interest on interest and eating upRead more
Divorce and Bankruptcy
Few issues cause more conflict in bankruptcy then a previous divorce with conflict between the spouses. Contentious divorces cause contentious bankruptcies. Some issues are clear. For example, alimony and child support can’t be discharged in any kind of bankruptcy. A property settlement obligation can’t be discharged in any kind of bankruptcy EXCEPT Chapter 13. But what about debts resulting from divorce that aren’t clearly identified as either alimony, child support or a property settlement? For instance, an award of attorneyRead more
Why Are You Waiting to File Bankruptcy?
Making the decision to file bankruptcy is not easy. I understand that as well as anyone. People are worried about what others will think. They’re worried about their future access to credit. They’re worried about whether they will lose any property. But the consequences of delaying the decision to file bankruptcy is so severe that debtors should ask themselves “What am I waiting for?” More and more, people are waiting until judgments have already been issued for delinquent debt orRead more
Post-Bankruptcy Requirements
Although most attention is paid to what someone filing bankruptcy needs to do before filing, there are some things debtors must do after a bankruptcy is filed. Documents have to be produced, counseling has to be taken and a required “meeting of creditors” occurs about one month after filing. After a bankruptcy is filed, debtors (through their attorney) must provide the trustee administering their case certain documents. These include the most recent tax returns, statements showing the balances in anyRead more
When Filing Bankruptcy is the Right Choice
As I write this article I’m attending a workshop for members of the National Association of Consumer Bankruptcy Attorneys (NACBA). It’s the first time we’ve met for a long time (we’re all vaccinated against COVID and wearing masks now). But being around other consumer bankruptcy attorneys reminds me why I love helping people file bankruptcy. We’re all committed to helping clients move beyond the burdens that debt places on people. When potential clients contact me they often ask whether filingRead more
Paying Student Loans in Chapter 13 Bankruptcy
In the past, debtors filing Chapter 13 bankruptcy were hindered by unimaginative and unwieldy federal rules and policies towards the payment of federal student loans. When a Chapter 13 was filed, the Department of Education would kick debtors out of any income driven repayment plan they’d been on prior to filing bankruptcy. Debtors would lose 3-5 years of repayment of their federal loans, delaying the possible discharge of their loans after a certain number of years, depending on the termsRead more
Avoid Foreclosure Relief Scams
With pandemic-related moratoriums on home foreclosures ending soon, scam foreclosure relief companies will also start taking advantage of desperate homeowners again. Both federal and state law limit what companies can do for people struggling to pay their mortgage. “Foreclosure consultants” are regulated by state law and federal regulations apply to companies claiming to offer mortgage assistance relief services. Here are some of the rules applying to these companies: Foreclosure relief companies must provide detailed notices explaining a homeowner’s rights, includingRead more
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