Discharge more income tax debts through smart timing. You may be able to do so by filing your bankruptcy after certain dates of 2019. The right timing of the filing of a bankruptcy case can make a tremendous difference. Our last 8 blog posts have all been about smart timing. If you need to use the bankruptcy laws to … Read More
Avoiding the Disadvantages of a 5-Year Chapter 13 Case
There are financial, credit record, risk, and emotional disadvantages to a 5-year Chapter 13 case that you might avoid through smart timing. Our last two blog posts were about how the last 6 calendar months of income of a person filing a Chapter 13 case can determine whether his or her Chapter 13 payment plan lasts only 3 years … Read More
An Example Showing How Smart Timing Can Shorten a Chapter 13 Case
Smart timing of your Chapter 13 case can reduce its length by as much as two years, saving you tons of money and letting you get on with life. In our last blog post we explained how your last 6 calendar months of income can determine whether your Chapter 13 payment plan lasts 3 years or instead 5 years. … Read More
Which Month You File Chapter 13 Can Cut Years Off Your Case
If you definitely need a Chapter 13 case, which month you file it can make the difference between your payment plan lasting 3 years or 5. In two blog posts last month (November 12 and 19) we showed how filing bankruptcy by the end of December 31 might allow you to file a Chapter 7 “straight bankruptcy” case instead … Read More
A Preference Example
Here’s an example of a preference—paying a favored debt before filing bankruptcy. If you know what it is, it’s usually not hard to avoid. Last week we explained why paying a creditor before filing bankruptcy could cause problems during bankruptcy. That’s especially true if the creditor you pay is one that you have personal reasons to favor. We explained the circumstances in which such a … Read More
Paying a Special Debt Before Bankruptcy Could Be a Preference
You may feel like paying a special debt, and during this time of the year you may even get some extra money to do it. Maybe you shouldn’t. Last week we explained how giving a significant gift before bankruptcy could cause problems during bankruptcy. This also applies to selling something for much less than it is worth. Such a gift or sale might … Read More
When Gift-Giving Is a Fraudulent Transfer, and When It Isn’t
Gift-giving, including selling something for much less than it’s worth, can be a problem in a latter bankruptcy. But usually it’s not. Most people filing bankruptcy have neither a need nor the desire to hide anything from their creditors. There’s no need because most people’s assets are already protected through state and federal laws. There’s no desire because most … Read More
Showing How the Means Test Can Work for You
Here’s an example showing how the means test can work for you, especially if you file your Chapter 7 case before the end of 2018. The month of December is the month that people receive more income than any other month of the year. According to the federal Bureau of Economic Analysis (part of the U.S. Department of Commerce), for at … Read More
Filing Bankruptcy in 2018 May Help You Pass the Means Test
When you file your bankruptcy case can determine whether you qualify for Chapter 7. Filing sooner may help you pass the means test. Timing Can Be SO Important There are lots of ways you could greatly benefit from meeting with a bankruptcy lawyer sooner rather than later. You may save yourself lots of money by choosing an option that … Read More
Unexpected Benefit: Keep Vehicle Lease in Chapter 13
Chapter 13’s main advantage over Chapter 7 with a vehicle lease is that you get much more time to catch up if you’re behind on your payments. Vehicle Lease Assumption under Chapter 7 Our last blog post showed how to keep a leased vehicle by “assuming” the lease in a Chapter 7 case. This means you keep making the … Read More
Unexpected Benefit: Keep Vehicle Lease in Chapter 7
If you want to keep your vehicle lease and are current you likely can under Chapter 7. You “assume” your lease contract and all of its terms. Our last three blog posts have been about rejecting a vehicle lease and giving the vehicle back to the lessor. You can do this either through Chapter 7 or 13. The result is the … Read More
Unexpected Benefit: Reject a Vehicle Lease in Chapter 13
Chapter 7 is the cleanest way to reject a vehicle lease and owe nothing. But if you have other reasons to be in Chapter 13, that works too. Ending a Vehicle Lease in Chapter 7 Our last blog post was about how a Chapter 7 “straight bankruptcy” can get you out of a vehicle lease. You can “reject” a … Read More
Unexpected Benefit: How to Reject and Owe Nothing on Your Vehicle Lease
Chapter 7 gives you the option to either assume or reject your vehicle lease. If you reject it you’d owe nothing more. Here’s how that works. Getting out of a vehicle lease in a Chapter 7 case requires simply that you formally state that you “reject” it. Then you owe nothing more. Last week we showed how a vehicle … Read More
Unexpected Benefit: Get Out of a Vehicle Lease with Bankruptcy
A vehicle lease is legally different from a vehicle loan in many ways. In the end it can be more expensive. Escape a lease with bankruptcy. The Temptation of a Vehicle Lease Leasing can seem like a sensible way to get a new vehicle. You often pay less money down and pay lower monthly payments. So leasing can sometimes … Read More
Unexpected Benefit: Vehicle Loan Cramdown, Illustrated
Chapter 13 can often give you the ability to reduce both your monthly payment and the total you pay on your vehicle loan. Here’s how it works. Cramdown in Chapter 13 Last week we introduced cramdown as an extremely helpful tool for reducing the cost of your vehicle loan. Cramdown can often: Reduce your monthly payments—sometimes significantly. Reduce the … Read More