In the simplest version of a Chapter 7 case: you easily pass the "means test" based on your income all your assets are protected by "exemptions" you either have no debts with collateral or else are current on these debts, and all your debts get discharged (legally written off). But what if your case isn't so straightforward? If Your … [Read more...]
The Big Differences between Chapters 7 and 13
May 18, 2017 by Leave a Comment
The two main consumer/small business bankruptcy options are quite different. Each one has its advantages and disadvantages. So, for many people Chapter 7 is much better, for others Chapter 13 would be. And for others it's a closer call. Even if you have your mind set on one or the other, it's important to discuss both alternatives with your … [Read more...]
Non-Bankruptcy Alternatives
April 17, 2017 by Leave a Comment
Bankruptcy is not the best option for everyone. If your financial problems look like they can be solved other ways, those alternatives should be explored. Consider both their advantages and disadvantages honestly. Here are three bankruptcy alternatives, highlighting their risks and concerns: 1. Debt Settlement: Once a debt goes into extended … [Read more...]
Is it Moral to File Bankruptcy?
March 7, 2017 by Leave a Comment
The Obligation to Pay Our Debts Sure, we all have a moral obligation to pay our debts. But you may well have a higher moral obligations to get relief from those debts. Think about it this way. Consider whether to file bankruptcy as a "business decision." Corporations make business decisions whether it's best for the business to file bankruptcy. … [Read more...]
Who Does What in Bankruptcy?
February 15, 2017 by Leave a Comment
It's a lot easier to make sense of bankruptcy if you know who's who in the process. Debtor: The person or business filing bankruptcy. A debtor and spouse can file a joint petition in bankruptcy. The debtor has various duties which your attorney will help you with. The debtor's most important duty is simply to be honest and cooperative throughout … [Read more...]
The Bankruptcy Chapters
January 18, 2017 by Leave a Comment
A Summary of the Chapter Options Each Chapter of bankruptcy is designed for certain kinds of debtors, and certain kinds of circumstances. For consumers and small business owners, usually either Chapter 7“straight bankruptcy” or Chapter 13“adjustment of debts”is appropriate, or occasionally Chapter … [Read more...]
So What is Bankruptcy?
December 8, 2016 by Leave a Comment
Bankruptcy is not a single thing. It's a set of different legal options for people and businesses to deal with their debts. It's in the U.S. Constitution The U.S. Constitution specifically authorizes bankruptcy. It gives Congress the "Power . . . To establish . . . uniform Laws on the subject of Bankruptcies throughout the United States." (See … [Read more...]
Passing the Income Side of the Means Test in Texas
November 16, 2016 by Leave a Comment
Most people can pass the means test and qualify for Chapter 7 "straight bankruptcy" simply because their income is no more than the "median income" for their state and family size. So if you are considering bankruptcy, this blog post can help you find out if you are among the many people whose income easily qualifies them for Chapter 7. The Point … [Read more...]
Write off Older Income Taxes Through “Straight Bankruptcy”
August 22, 2016 by Leave a Comment
To discharge (write off in bankruptcy) an income tax debt, the tax must meet four main conditions, as follows: 1. Three years passed since the tax return was due? Every income tax obligation has a fixed date for which its tax return must be filed, of course usually by April 15 of the following year. Three years must have passed from that due … [Read more...]
How to Prevent Future Judgment Liens
July 22, 2016 by Leave a Comment
Letting a creditor get a judgment against you is dangerous, for a lot of reasons. One of the biggest dangers is a judgment lien on your home. You can often prevent them from hitting the title to your home, and can really help yourself if you do. Creditor Judgments Happen All Too Easily It's very easy to get a judgment against you. If you … [Read more...]
