• Home
  • Bankruptcy in Brief
  • ABC’s of Bankruptcy
  • Considering Bankruptcy
  • True Stories
  • Chapter 13
  • Blog
  • About
  • TOC

Northern California Bankruptcy Lawyer

On The Bankruptcy Soapbox

The Soap Box
  • How bankruptcy works
  • Mortgage Matters
  • Consumer Rights
  • You & Your Lawyer
  • Small Business
  • Family Law

What T-Boz Missed When Chapter 13 Dismissed

By Cathy Moran

 

 

 

T-Boz Watkins got her Chapter 13 case tossed out of court for not following the rules of Chapter 13 bankruptcy.

While Jay Fleischman at ConsumerHelpCentral laid down the law, so to speak, in listing the rules, he didn’t remind us why they are worth following.

Chapter 13 bankruptcy: better than sliced bread

You cannot beat the deal in  Chapter 13:  you get to keep your assets, by making payments over as long as five years, to give your creditors what they would have gotten had you filed Chapter 7.

You get the protection of the automatic stay for the life of the plan, keeping creditors from reaching your money or your assets, while you make payments.

You get a bankruptcy judge who will enforce the rights you get in Chapter 13, including making all creditors honor your plan.

You get to change the terms of your plan if things change and you can’t live with the original terms.

You get the broadest discharge of debts available in bankruptcy.

Somehow, following the rules doesn’t seem so onerous.

Oh, and I didn’t mention that you can catch up on your mortgage, strip off undersecured loans or other liens on your home, or pay the delinquent taxes without penalty through the plan.  All without any negative tax consequences for ditching the debt.

Pay attention

I know the pattern that may have been at work in T-Boz’s case.  After all the stress of living with impossible debt and making a difficult decision to file bankruptcy, you let down.

The pressure’s off, you’ve made it to a safe haven, and the adrenaline stops running.

Not so fast.

If you don’t pay attention and give the rules of the Chapter 13 road the attention they deserve, you’ll find yourself out of court and out of luck.

It’s not hard; it just takes focus.  And the prize is worth it:  a debt free future.

Image courtesy of 60 in 3

More from the Soapbox

  • How to fight back against EDD’s Form 1099GHow to fight back against EDD’s Form 1099G
  • Tax Tips & Tidbits To Pay LessTax Tips & Tidbits To Pay Less
  • Closing Up ShopClosing Up Shop
  • Bankruptcy Alphabet: E is for ExemptionsBankruptcy Alphabet: E is for Exemptions
  • Wage garnishment ends with bankruptcy filingWage garnishment ends with bankruptcy filing

Filed Under: Chapter 13, How bankruptcy works

About Cathy Moran

I'm a veteran bankruptcy lawyer and consumer advocate in California's Silicon Valley. I write, teach, and speak in the hopes of expanding understanding of how bankruptcy can make life better in a family's future.

Bankruptcy Basics

About The Soapbox

You’ve arrived at the Bankruptcy Soapbox, a resource of bankruptcy information and consumer law.

Soapbox is a companion site to Bankruptcy in Brief, where I try to be largely explanatory and even handed (Note I said “try”).

Here, I allow myself to tell stories and express strong opinions. We dig deeper into how to consider bankruptcy and navigate a bankruptcy case.

Moran Law Group
Bankruptcy specialists for individuals and small businesses in the San Francisco Bay Area

How Bankruptcy Works

How To Pay For Bankruptcy When You’re Flat Broke

One of the cosmic ironies of our legal system is that it costs money to file bankruptcy. Bankruptcy gets you out of debt only if you have the money to file. The costs of bankruptcy include the filing fee collected by the court; the required credit counseling; and, if you're smart, an experienced lawyer to make sure … Read more

More Posts from this Category

643 Bair Island Road
Suite 403
Redwood City, CA 94063
Phone: (650) 694-4700
Phone: (650) 368-4700

Categories

All content copyright © Moran Law Group. All rights reserved.