Chapter 7 will stop student loan collections. Then either write off the student loans through “undue hardship” or have time to deal with it. Our last blog post was about a Chapter 7 bankruptcy stopping a tax garnishment only temporarily. In that situation this was OK because it gave time to set up a payment program with the IRS/state. … Read More
Stop Tax Collections to Start Monthly Payment Plan
Filing Chapter 7 bankruptcy gives you a break from income tax collections, precious time to deal with a recent tax you must still pay. We ended the last blog post saying that sometimes a Chapter 7 bankruptcy will stop a wage garnishment only temporarily. One such situation is if the IRS (or state tax agency) is chasing you on … Read More
Avoiding Wage Garnishment by Filing Bankruptcy
Filing bankruptcy avoids a wage garnishment from hitting your paycheck. Bankruptcy prevents a garnishment as long as it is filed fast enough. Last time we got into how hiring a Louisville bankruptcy lawyer can stop a creditor from suing you. Sometimes it can also stop a creditor which has already sued from getting a judgment against you. But these … Read More
A Bankruptcy Lawyer Can Give You Immediate Relief
Hiring a bankruptcy lawyer can buy you some immediate relief from your creditors, and prevent some crucial irreparable financial harm. What relief can you get when you get a bankruptcy lawyer? Relief After vs. Before Filing Bankruptcy The moment you file a bankruptcy case, all or most of your creditors must legally stop collecting their debts. The law that accomplishes this is called … Read More
A Handy Summary to Chapter 7 vs. 13 for Your Secured Debts
Here is a handy summary of when to reaffirm your secured debt (like a vehicle loan) under Chapter 7 vs. cramming it down under Chapter 13. The last 4 weeks of blog posts have been about options for keeping collateral through Chapter 7 and Chapter 13. Mostly these options have involved reaffirming a secured debt in Chapter 7 or … Read More
Protecting Your Vehicle If It’s Worth Too Much
Often your car or truck is fully protected in bankruptcy through an exemption. But if it’s worth too much bankruptcy can still protect it. How Chapter 7 and Chapter 13 affect your vehicle and vehicle loan can determine which of these options you choose. That’s why we’ve focused the last several blog posts on the differences between these options. … Read More
Cramdown Timing Condition Only Applies to Vehicle Bought for Personal Use
The 910-day condition on doing a vehicle debt cramdown only applies if the vehicle was “acquired for the personal use of the debtor.” The Cramdown Advantage The last several blog posts have been about the advantages of Chapter 13 cramdown, especially the cramdown of vehicle loans. Cramdown can be an excellent way to keep your vehicle. It usually allows … Read More
No Timing Conditions for Cramdown on Non-Purchase Collateral
No need to comply with the timing conditions when doing a cramdown of a secured debt if the collateral was not purchased with the debt. The Cramdown Advantage Last week we got into Chapter 13 cramdown of vehicle loans and furniture loans. Cramdown can be an excellent way to keep personal property that’s securing a loan. It allows you … Read More
Does Your Creditor Has a Valid Security Interest?
Whether your creditor has a security interest determines whether it has rights against your vehicle or other collateral. Find out for sure. Reaffirmation vs. Cramdown The last four blog posts have compared Chapter 7 reaffirmation with Chapter 13 cramdown of a secured debt. With reaffirmation you keep the vehicle or other collateral but continue to owe the debt. Usually … Read More
Examples of When to Reaffirm a Debt, When to Use Chapter 13
Here are examples of when to reaffirm a secured debt (like a vehicle loan) in a Chapter 7 case or instead use a Chapter 13 case. The last blog post was about when to reaffirm a secured debt under Chapter 7 and when to handle that under Chapter 13 instead. This kind of comparison of options can get a … Read More
Furniture Loan: Reaffirm or Cramdown?
Here’s an example of when it’s better to reaffirm or cramdown a furniture/appliance loan, to use a Chapter 7 case or a Chapter 13 one. Last time we showed how cramdown on a vehicle loan can reduce the payments and the total amount you pay. The amount you save monthly and in total may be enough to justify filing … Read More
Vehicle Loan: Reaffirm or Cramdown?
Here’s an example of when it’s better to reaffirm or cramdown a vehicle loan, to use a Chapter 7 case or a Chapter 13 one. We’re in a series of blog posts about choosing between Chapter 7 “straight bankruptcy” and Chapter 13 “adjustment of debts.” Along these lines two blog posts ago we outlined when to reaffirm a secured … Read More
When to Reaffirm a Debt, When to Use Chapter 13
Reaffirming a secured debt, like a vehicle loan, can be a good way to keep that collateral/vehicle. But Chapter 13 is sometimes better. The last 5 blog posts in December were about keeping the collateral you want by “reaffirming” the debt. “Reaffirmation” applies only to Chapter 7 “straight bankruptcy”cases. (We’ve focused mostly on reaffirming a vehicle loan.) Today we … Read More
A New Year, a New Financial Start
It’s a new year. What could be a better resolution than to get a new financial start for 2018!? What could be better than that? An Overall New Financial Start Get a new start by discharging (permanently, legally writing off) all or most of your debts. If you have mostly consumer or small business debts you have two main … Read More