Who gets paid in Chapter 13, and in what order, makes a huge different when charting your course. Sometimes, we must realize that reality exists outside of television shows. And when real-world reality hits some debtors, it’s a trainwreck. It comes up for me when Chapter 13 clients and I sit down to write the […]
How Chapter 13 Cuts Car Loan Down To Size
Car lenders who make new car loans with an underwater trade-in will face the music in Chapter 13. The Supreme Court declined to review a 9th Circuit decision that stripped car loans of their protected specially protected status in bankruptcy; as a result, Californians will continue to benefit from the debtor-friendly decision in Penrod, rising out of […]
The Zero Interest Get-Out-Of-Debt Tool: Bankruptcy For The Solvent
Once again, Chapter 13 rescued a client. He’ll get out of debt and pay off credit cards with no interest going forward. So many people tell me they could pay off the credit card balance if it wasn’t for the high interest. This client owned a home, had a job, and was solvent on paper, but […]
How Chapter 13 Saves You Money
Why should I file Chapter 13 if I have to pay all my creditors in full? Because, I said, even a 100% repayment plan under Chapter 13 saves you money. This client had a fistful of equity in a home; that equity made a Chapter 13 the required choice of chapter for the man. But […]
Chapter 13 To The Rescue In Ruinous Business Lawsuit
Twice in the last six months, Chapter 13 bankruptcy has saved clients facing catastrophic lawsuits arising out of business. And because the targets of these lawsuits filed bankruptcy before they’d spent a fortune on lawyers and before the court had a chance to award huge damages, they fit beneath the Chapter 13 debt limits. We […]
Who Gets A Slice Of The Bankruptcy Pie?
“That woman filed a claim in our bankruptcy case, and we don’t owe her any money!” The next line, or paragraph really, of my client’s email asked what was I, her bankruptcy lawyer, going to do about it. The short answer was nothing. Nada. Not a thing. I didn’t plan to do anything. Because when […]
Why I Love Chapter 13
How do I love thee, Chapter 13? Let me count the ways. Hang on, because it’s a long list. Thirteen reasons Chapter 13 rocks. I love Chapter 13 because: 1. Debtors keep control of their assets. They run their businesses. There is no trustee tasked to sell their assets. 2. Repayment to creditors […]
Chapter 13 Bankruptcy Disrupted by Coronavirus
Has your Chapter 13 bankruptcy case been turned upside down by coronavirus? You are not alone. And attorneys, trustees and judges are all working on adaptations and adjustments that will save pending cases. Practices and procedures in Chapter 13 vary widely around the country. What follows is what I see here in the Bay Area […]
Chapter 13 Dismissed After All Payments Are Made: Self Inflicted Wounds
There’s been a rash of bullet-ridden feet lately in Chapter 13 cases. Debtors seem to whip out their pistols and shoot themselves in the foot with increasing regularity. Just when their goal of keeping the house was within reach, had they paid attention, they lose it all. It happens when debtors don’t hold up their […]
At Risk of Repossession? How To Keep The Car & Pay Less
If you are one of the 7 million Americans late on your car payments and living in fear that your car will be repossessed, consider how Chapter 13 bankruptcy can save your wheels. Losing your car can accelerate a torrent of nasty financial consequences. No car, no way to work. No work, no income. So, […]
