Unexpected Benefit: Prevent the Forced Repayment by a Favored Creditor

Wasson and ThornhillBankruptcy Law

Prevent the forced repayment of a pre-bankruptcy payment to a relative or friend. If other solutions don’t work, Chapter 13 usually will.   Our last two blog posts have been about one of the more confusing parts of bankruptcy: the law of preferences. This law says that if a creditor takes or receives money from you within the 90 days … Read More

Unexpected Benefit: Force a Creditor to Return Your Money

Wasson and ThornhillBankruptcy Law

Filing bankruptcy stops garnishments and collections, but it also may be able to make a creditor return your money recently taken from you.     Bankruptcy’s “automatic stay” is one of the most immediate and powerful benefits of filing bankruptcy. It immediately stops almost all creditor collection actions against you, your income, and your assets. See Section 362 of the U.S. Bankruptcy Code. … Read More

12 Unexpected Benefits of Bankruptcy

Wasson and ThornhillBankruptcy Options

Financial Freedom

Bankruptcy gives you immediate and long-term relief from your creditors. But there are many other unexpected benefits of bankruptcy.      The next 12 blog posts will be about some of the most powerful and surprising benefits of bankruptcy. You’re likely considering bankruptcy because you need financial relief. You need immediate relief from debt collection pressures. You need long-term relief from having to pay … Read More

Beyond Paying Your Chapter 13 Plan

Wasson and ThornhillChapter 13

Object to a Creditor's Proof of Claim to Qualify for Chapter 13

To finish your case successfully, sometimes beyond paying your Chapter 13 plan you may need to pay a debt directly and do some other things.   The bankruptcy court’s approval of your payment plan (at the Confirmation Hearing) happens about 2-to-4 months after filing your case. At that point your Chapter 13 case is fully on its way. You likely … Read More

Finishing a Chapter 13 Case Successfully

Wasson and ThornhillChapter 13

Finishing Your Chapter 13 Case

Although a Chapter 13 case lasts so much longer than a Chapter 7 one, it often has huge advantages. But you have to complete it successfully.     Once your Chapter 13 payment plan gets approved at the “confirmation hearing,” your case is on its way. Now you have to comply with that plan to get the advantages that Chapter … Read More

Finishing a Chapter 7 Case Successfully

Wasson and ThornhillChapter 7

An Example of the Judge's Ruling in a Dischargeability Proceeding

Most likely your Chapter 7 case will be completed successfully. But be aware of these essential steps to make sure it does happen.   You’ve filed a Chapter 7 “straight bankruptcy” case, which stopped all creditor collections actions against you. About a month later you’ve gone through the Meeting of Creditors with the Chapter 7 trustee. Now within two more … Read More

The Chapter 13 Confirmation Hearing

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The Chapter 13 Confirmation Hearing

At the Confirmation Hearing (which you almost never need to attend) the bankruptcy judge “confirms” (approves) your Chapter 13 payment plan.   The Chapter 13 Plan As we said last week about the Meeting of Creditors, a Chapter 13 case is all about “the plan.” The plan is your financial road map during the 3 to 5 years that you … Read More

The Chapter 13 Meeting of Creditors

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The Chapter 13 Meeting of Creditors

At the Chapter 13 Meeting of Creditors you, your lawyer, & the trustee discuss your payment plan and any creditor & trustee questions.   The Chapter 13 Payment Plan The core of your Chapter 13 “adjustment of debts” case is the payment plan. The plan is a detailed outline of who you will pay, how much, and when. A Chapter … Read More

The Chapter 7 Trustee Opposing Your Discharge of Debts

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The Chapter 7 Trustee Opposing Your Discharge of Debts

In most Chapter 7 cases nobody opposes your discharge of debts. They get written off. But the trustee is one who might raise issues.   Last week we discussed the role of the Chapter 7 trustee in reviewing your assets at the “meeting of creditors.” Today we get into the other main job of the trustee, to, “if advisable, oppose … Read More

Don’t Lose the Automatic Stay Because of a Recent Bankruptcy Filing

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Avoid Having No Automatic Stay

If you filed a recent bankruptcy case that was dismissed, either wait one year to file your new case or you must justify the prior dismissal.   The last few blog posts have been about situations in which the automatic stay is temporary, but still very effective. These situations have involved individual debts or sets of debts—such as income taxes … Read More

Stop Student Loan Collections to Have Time to Deal with It

Wasson and ThornhillStudent Loans

Stop Student Loan Collections to Have Time to Deal with It

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

Wasson and ThornhillIncome Taxes

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

Wasson and ThornhillAutomatic Stay

Creditor’s Dischargeability Objection

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

Wasson and ThornhillBankruptcy Advice

Benefits of Investments During Bankruptcy

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