Avoiding the Disadvantages of a 5-Year Chapter 13 Case

Wasson and ThornhillPre-Bankruptcy Planning

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

Which Month You File Chapter 13 Can Cut Years Off Your Case

Wasson and ThornhillPre-Bankruptcy Planning

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

Wasson and ThornhillPre-Bankruptcy Planning

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

Wasson and ThornhillPre-Bankruptcy Planning

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