One of the most powerful tools of bankruptcy—the "automatic stay"—can stop the repo man cold. This is the law that automatically goes into effect the moment your bankruptcy case is filed at court to stay—or stop—all collection activity against you and your property. The filing of a Chapter 7 or Chapter 13 case will force a creditor to … [Read more...]
How Chapter 13 Actually Works When Behind on a Vehicle Loan
February 23, 2016 by Leave a Comment
Falling behind on a vehicle loan is scary, especially if you are really relying on that vehicle to get to work—or to find work, and to take care of life’s other responsibilities. It is all too easy to get a vehicle repossessed — vehicle lenders’ contracts generally allow them to do as soon as you are at all late on your payment. Limited Help … [Read more...]
Choosing Between Chapter 7 and 13 after Closing Your Business
February 2, 2016 by Leave a Comment
If you’ve already closed down your unsuccessful business, or are thinking of closing one you are now operating, you must be wondering what’s the best way to deal with the debts that are now saddling you from that business. The answer depends on many factors, including the type of debts that you owe. Here are some of the main kinds of legally … [Read more...]
How Chapter 13 Actually Works When Behind on a Mortgage
January 26, 2016 by Leave a Comment
One of the main reasons that people file a Chapter 13 “adjustment of debts” bankruptcy is because of the many tools it provides to enable them to hold onto their homes. One of the most important of those tools is being able to have three to five years to catch up on back mortgage payments. Advantages over Chapter 7 “Straight Bankruptcy” First, … [Read more...]
How Chapter 13 Actually Works When You Owe Income Taxes
January 12, 2016 by Leave a Comment
A Chapter 13 “adjustment of debts” bankruptcy will allow you to pay off past-due income taxes over a three-to-five year period, frequently without incurring any additional interest or penalties, and often enabling you to pay less of the tax itself. Chapter 13 Gives You Lots of Power Consumers file a Chapter 13 case instead of a “straight … [Read more...]
How Long Must You Live in Texas to Use its Generous Asset Exemptions?
December 29, 2015 by Leave a Comment
Our last blog post introduced the rules about when newer Texas residents can use this state’s property exemptions. Exemptions protect your assets when you file bankruptcy. Today we expand on this. The Timing Rule In general, you can only use the exemption protections available to Texas residents once you have lived here for 730 days—two years. … [Read more...]
How Long Must You Live in Texas to File Bankruptcy Here?
December 7, 2015 by Leave a Comment
Bankruptcy is Available Immediately, with Only Some Limited Conditions Bankruptcy is federal law, so there is no waiting period to file bankruptcy after moving from one state to another. However, even though bankruptcy is federal law it incorporate state laws in many ways. Probably the biggest practical way state laws matter in bankruptcy … [Read more...]
The Simplest Chapter 13 Case
November 19, 2015 by Leave a Comment
What Does a Simple Chapter 13 Case Look Like? Under Chapter 13, you and your attorney propose a payment plan based on your ability to pay. Through this plan you usually pay back only part of your debts, and sometimes only a small part of what you owe to at least some of your creditors, and possibly even nothing. Your plan states how much you … [Read more...]
How Chapter 7 Actually Works When Surrendering Your Home
November 5, 2015 by Leave a Comment
Including Your House Debts in Bankruptcy Both Chapter 7 “straight bankruptcy” and Chapter 13 “adjustment of debts” can help you keep your house. Be sure you talk to an attorney to understand how they can do so. Believe it or not, under some circumstances you can significantly reduce your monthly payments, and even reduce the debt against your … [Read more...]
How Chapter 7 Actually Works When Keeping Your Home
October 20, 2015 by Leave a Comment
If Current on All of Your Home Obligations A Chapter 7 “straight bankruptcy” is generally designed for more straightforward debt situations, including involving debts on your home. If you are current on all obligations secured by your home, and you intend to keep the home and keep up on your mortgage payments, your home and your mortgage will very … [Read more...]
