Intrigued by Chapter 13, but worried about how much your Chapter 13 payment might be? OK, let’s walk through what your payment must be by law and what you want that payment to cover to get a fresh start. Part of the power of Chapter 13 is that you write the plan, with the help […]
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What You Think About Chapter 13 Is Dead Wrong
The difference between bankruptcy’s Chapter 7 and Chapter 13 is often expressed this way: Chapter 7 is a liquidation proceeding Chapter 13 is a repayment plan And therein lies the biggest misconception about Chapter 13: 13 does not necessarily repay everything you owe. It’s a repayment plan alright, but not necessarily a 100% repayment . […]
What’s The Income Limit for Filing Bankruptcy
Actually, there’s no income limit for filing bankruptcy. None, nada, no way. Instead, there’s the infamous means test, an awkward and complex formula, written by Congress, to identify individuals who are entitled to file Chapter 7. Not everyone has to take the means test. The means test doesn’s apply to individuals whose debt is primarily […]
What The Fool Got Wrong About Filing Bankruptcy
The famous poem begins, “how do I love thee? let me count the ways”. But what if it’s not love that we are counting, but loathing? Let me count the ways I loathe the Motley Fool’s article asking should I file bankruptcy? The Fool’s underlying assumption is that people in debt flock to bankruptcy as […]
Got Tax Trouble? Don’t File Bankruptcy In December
Bankruptcy can provide tax relief, if your timing is right. Tax troubles are at the heart of so many bankruptcy filings. It makes sense: bankruptcy is a powerful and predictable tool to get out of tax debt. But filing bankruptcy before the end of the year may fix only a part of your tax problems. […]
Bankruptcy Without A Discharge: Why Chapter 20 Works
What does a Chapter 13 bankruptcy get you if it doesn’t get you a discharge? Lots, actually. It’s complicated. Powerful, but complicated. Let’s see how all the parts interact when your Chapter 13 is filed before you’re eligible for a discharge. Law limits discharge The bankruptcy code doesn’t limit when you can file bankruptcy; it […]
Why Credit Cards Win Clash of Creditors
In the tug o war of which creditor to pay, why is it that credit cards win over taxes and child support? I’m accustomed to clients who pay creditors rather than provide for their own health care, emergency fund, or retirement. That’s taking care of commitments to others before self. But I haven’t figured out […]
Debt Limits Increase For Chapter 13 Bankruptcy
Debt limits to swell to $2.75M under new legislation Legislation signed in June, 2022 raised the debt cap in Chapter 13 to $2.75M without regard to whether the debt is secured or unsecured. In the Bay Area with its eyepopping mortgage balances, that will mean more families will be eligible to file Chapter 13. The […]
Chapter 13: Know Who Gets Paid First Under Your Plan
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 […]
10 Things Every Attorney Should Know About Bankruptcy
Financial stress is everywhere. It pops up in family law, litigation, business, and our dealings with taxing authorities. Every lawyer can better serve clients if they know a bit about bankruptcy, regardless of the focus of their practice. Here’s my list of bankruptcy basics for lawyers that every practitioner should know to guide clients to […]
