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
Unexpected Benefit: Better Ways to Save Your Vehicle with Chapter 13
Chapter 7 can’t directly help much your vehicle loan. But Chapter 13 can: it can buy you much more time and likely lower your payments. Problems to Solve Last week we addressed the kind of help Chapter 7 “straight bankruptcy” provides on your vehicle loan. Mostly it clears the deck of your other debts so that you can afford … Read More
Unexpected Benefit: Dealing with Your Vehicle Loan in Bankruptcy
Bankruptcy gains you lots of leverage with your vehicle loan. Chapter 7 helps simply by getting rid of most or all of your other debts. Here’s the Problem You’re paying on a car or truck. You absolutely need this vehicle for getting to work, and to keep your life going. You can’t do without it. But you’re having trouble … Read More
Unexpected Benefit: Whether to Use Chapter 13 to Write Off Divorce Debts
Chapter 13 does write off certain divorce debts. But it does so with some important conditions and disadvantages that you need to consider. Last week we explained how Chapter 7 cannot write off non-support divorce debts, but Chapter 13 can. We said if you owe a significant debt created by your divorce decree (for other than child or spousal … Read More
Unexpected Benefit: Write Off a Divorce Debt
Chapter 7 does not write off any divorce debts. But Chapter 13 can write off a divorce debt if it is not for child or spousal support. “Discharging” a Debt or Legal Obligation When you successfully complete a consumer bankruptcy, you get a discharge of some or all of your debts. When a debt is discharged the creditor is … Read More
Unexpected Benefit: Chapter 13 Defeats an Income Tax Lien on a Nondischargeable Tax
If Chapter 7 doesn’t write off enough another debts so you can afford to pay the tax, Chapter 13 gives you much more time and protection from the tax lien. Last week we discussed how Chapter 7 handles a recorded tax lien on a tax that bankruptcy CAN’T discharge. The tax debt already can’t be discharged (legally written off in bankruptcy). … Read More
Unexpected Benefit: An Income Tax Lien on a Nondischargeable Tax
Hit with an income tax lien on a tax that bankruptcy can’t discharge? Bankruptcy is all the more valuable so that you can afford to pay off that tax. We’ve been talking about the effect of an income tax lien on an income tax that bankruptcy CAN discharge–legally write off. A tax lien can turn that tax from one you don’t … Read More
Unexpected Benefit: Dealing with a Recorded Income Tax Lien with Chapter 13
Chapter 13 is better with a recorded tax lien because it protects you permanently from the IRS/state. And saves you big money on that tax. Last week’s blog post was about dealing with a recorded tax lien by filing a Chapter 7 “straight bankruptcy” case. Usually the IRS’ or state’s recording of a tax lien against you effectively requires … Read More