The U.S. bankruptcy laws were enacted to give debtors a second chance, to allow you to put financial problems behind you and start over again. Under Chapter 7, you have the right to permanently discharge certain debts in exchange for the sale of non-exempt assets. It's important to understand, though, that those rights are not absolute. If you've … [Read more...]
The Vehicle Cramdown Process in Bankruptcy
April 10, 2018 by Leave a Comment
If you're struggling to meet your financial obligations and have decided that a personal bankruptcy filing is your best option, you want, if possible, to structure the bankruptcy in such a way that you get to keep your car, so that you can get to and from work. There's a special procedure, known as a "cramdown," that allows you to keep your vehicle … [Read more...]
Do I Qualify for Protection under Chapter 13?
March 5, 2018 by Leave a Comment
When the bankruptcy laws changed in 2005, it became more difficult to file for liquidation under Chapter 7. You must now submit to means test to determine whether you have the ability to repay your creditors over a 3-5 year period. If so, then your only recourse for a personal bankruptcy is under Chapter 13. But that doesn't mean that you … [Read more...]
Exceptions to the “Automatic Stay”
November 15, 2017 by Leave a Comment
The "Automatic Stay" The "automatic stay" is one of the most powerful tools of bankruptcy. It's the law that automatically goes into effect right when your bankruptcy case is filed, and stays—or stops —all collection activity against you and your property. Although the "automatic stay" protects you against just about anything a creditor can do … [Read more...]
Stop Wage Garnishment in Texas with Bankruptcy
October 18, 2017 by Leave a Comment
Texas is one of the few states in the country that generally don't allow the garnishment of wages for collection of consumer debts. But there are major exceptions where garnishments CAN occur, including: child support and alimony federal taxes student loans if your employer is out of state a judgment against you was entered in another … [Read more...]
Stop a Vehicle Repossession with Chapter 7 or13
September 25, 2017 by Leave a Comment
One of the most powerful tools of bankruptcy—the "automatic stay"—can stop your car or truck from being repossessed by its creditor. The automatic stay is the law that automatically goes into effect the moment your bankruptcy case is filed to stay—or stop —all collection activity against you or your property. Filing a Chapter 7 or Chapter 13 case … [Read more...]
Stop a Home Foreclosure with Chapter 7 or 13
August 16, 2017 by Leave a Comment
The bankruptcy power called the "automatic stay"immediately stops a home foreclosurethe moment your bankruptcy is filed. What happens after that depends on whether you file a Chapter 7 or Chapter 13 case, and on what you want to accomplish. Buy Some Time with Chapter 7 A Chapter 7 "straight bankruptcy" cancels an immediately pending foreclosure … [Read more...]
A More Complicated Chapter 13 Case
July 18, 2017 by Leave a Comment
In the absolutely simplest Chapter 13 case you pay a monthly amount each month based on what you can afford and it's divided prorata among your unsecured debts. So, say, you pay $300 for 36 months, and all of your debts are paid 20% of what you owe, and at the end of the case all the remaining debts are discharged—written off. But Chapter 13 … [Read more...]
A More Complicated Chapter 7 Case
June 14, 2017 by Leave a Comment
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...]
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...]
