Photo by Bermix Studio on Unsplash. You could pay your medical bills through many forms of borrowing—from putting them on a credit card to a home equity loan. What makes sense? About one-fourth (26%) of American adults (18-64 years old) reported that they or someone in their household had problems paying medical bills during the previous year. This is according … 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