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...]
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...]
Writing off Non-Support Debts to an Ex-Spouse
October 4, 2016 by Leave a Comment
Confusing Divorce Debts and Bankruptcy Law In a Chapter 7 "straight bankruptcy" case you CANNOT discharge—legally write off—ANY obligations arising from your divorce decree. This includes support-related and non-support divorce debts. But under Chapter 13 "adjustment of debts" you CAN discharge NON-SUPPORT divorce debts. This is a confusing … [Read more...]
Pay off Newer Income Taxes at Your Own Pace through “Adjustment of Debts”
September 7, 2016 by Leave a Comment
Chapter 13 vs. Chapter 7 with Income Taxes Chapter 13 is a court-approved payment program which usually takes three to five years to successfully complete. While you might think that being in a payment program doesn't sound nearly as good as simply discharging (legally writing off) your debts in a Chapter 7 case, the fact is that some debts … [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 Keep Your Home through Chapter 7
May 22, 2016 by Leave a Comment
Whether you can keep your home when filing a Chapter 7 case mostly depends on the answers to two questions: Are you current or close to current on your mortgage and other debts on your home, and Is the equity in your home protected by your "homestead exemption"? Let's focus today on your mortgage. If You Are Current on Your … [Read more...]
How to Keep a Vehicle Even If You’re Behind on Payments
April 22, 2016 by Leave a Comment
Falling behind on a vehicle loan is scary because of the very real threat of having your vehicle repossessed. It is all too easy for this to happen—vehicle lenders' contracts usually legally allow them to do as soon as you are late on your payment. Limited Help with a Chapter 7 "Straight Bankruptcy" Once you have fallen behind on your … [Read more...]
