Ongoing retirement saving by Chapter 13 debtors has been a touchy subject since the means test became a part of the bankruptcy scene. The means test was intended to squeeze every available dollar from consumer debtors. It works by limiting the expenses that can be deducted from income in figuring what a debtor can/must pay […]
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, […]
How One Family Settled Huge Debt For Pennies
When he started the Chapter 13 trek, he owed $370,000 in personal loans and credit cards. As he completes his plan, he will have settled that debt for three cents on the dollar. No tax is due on the forgiven debt and no listed creditor can legally come back to try to collect the difference. […]
Cut Tax Penalties In Bankruptcy
Get in tax trouble and the penalties often grow huge. What starts as a manageable problem can soon tower over you. Breathe deep; there is a solution. Chapter 13 bankruptcy can cut tax penalties down to size. All tax penalties discharged in 13 Old or new, large or small, Chapter 13 discharges all unsecured tax […]
