In an earlier blog, we discussed the limitations on discharging a tax liability through a Chapter 7 bankruptcy filing. You can, however, use a Chapter 13 debtor reorganization to reduce the amount you must pay every month. In addition, you may actually be able to discharge some of your tax debt at the end of the Chapter 13 process. The tax debt … [Read more...]
When Can You Discharge Tax Debts in Chapter 7?
March 5, 2019 by Leave a Comment
Can You Lose Individual Retirement Account Assets in a Bankruptcy? In a Chapter 7 bankruptcy filing, you can typically discharge certain debts in exchange of allowing some of your assets to be placed in the bankruptcy estate, where they may be sold to satisfy creditors. Among the debts typically identified as non-dischargeable are family law … [Read more...]
Chapter 7 or Chapter 11—What’s Right for Your Business?
February 28, 2019 by Leave a Comment
Determining Your Options It's a documented fact—one third of new businesses don't make it a full year, half shut their doors within five years and only a third make it 10 years. If your company is struggling to meet its financial obligations, a bankruptcy filing may allow you to get a fresh start. But should you seek to discharge debts in Chapter … [Read more...]
Support Obligations and Bankruptcy—Your Options
February 20, 2019 by Leave a Comment
Managing Child Support and Spousal Support Debt in Bankruptcy If you're struggling to keep your head above water financially, and a big part of your monthly outlay is for child or spousal support, you may have questions about whether you can use the bankruptcy laws to get some relief. Here's an overview of your options. Chapter 7 May Not Be Used … [Read more...]
Student Loan Arrearages—Chapter 7 or Chapter 13?
February 12, 2019 by Leave a Comment
Suppose that you're struggling to meet your obligations and the bulk of your debt is tied to student loan repayments. You're not alone. Statistics indicate that more than 44 million debtors owe over $1.5 trillion in student loan debt, and that that average total amount of debt for graduates of the class of 2018 was $29,800, with many former … [Read more...]
Can the Funds in an IRA Be Part of Your Bankruptcy Estate?
February 4, 2019 by Leave a Comment
Can You Lose Individual Retirement Account Assets in a Bankruptcy? When you file for protection under Chapter 7 of the bankruptcy laws, a "bankruptcy estate" will be created, into which certain assets of yours will be transferred. If those assets are not exempt under state or federal law, the bankruptcy trustee may choose to sell them to pay down … [Read more...]
Can You Have a Discharge Revoked?
January 31, 2019 by Leave a Comment
Are There Actions That Can Lead the Bankruptcy Court to Reverse the Discharge of a Debt? When you file for protection under Chapter 7 of the bankruptcy laws, you have the right to permanently rid yourself of the legal obligation to repay certain debts. Under the bankruptcy laws, that's referred to as the "discharge" of a debt. Once a debt is … [Read more...]
Can You Discharge Income Tax Arrearages?
January 24, 2019 by Leave a Comment
Is There a Process for Getting Rid of Tax Debts? Under Chapter 7 of the bankruptcy laws, once you qualify by taking the means test, you can permanently discharge certain debts in exchange for the sale of non-exempt assets. Some debts either cannot be discharged at all or have limited dischargeability. Family law obligations, such as child support, … [Read more...]
What Happens If a Creditor Attempts to Collect on a Debt that Has Been Discharged?
January 17, 2019 by Leave a Comment
What Are Your Options If a Creditor Attempts to Collect on a Debt That Has Been Discharged? If you successfully make it through the Chapter 7 bankruptcy process, the bankruptcy court will issue an order discharging certain debts in exchange for the sale of some of your property. A discharge means that you no longer have any legal obligation to … [Read more...]
What Is a Chapter 13 “Super Discharge”?
January 10, 2019 by Leave a Comment
Permanently Eliminating Debt Through Chapter 13 Reorganization It's a common misperception that if you want to discharge debt, you have to file a Chapter 7 bankruptcy petition. Unfortunately, with the means test that's required to qualify for Chapter 7, many people incorrectly believe they can't discharge debt in bankruptcy. The reality—Chapter 13 … [Read more...]
