Pay Priority Debts through Chapter 13

Wasson and ThornhillChapter 13

One of the smartest ways to pay your priority debts—including recent income taxes or child/spousal support arrearage—is through Chapter 13.   Priority Debts under No-Asset and Asset Chapter 7 Our last two blog posts described how Chapter 7 can sometimes be a sensible way of dealing with priority debts. (Those are ones you can’t “discharge”—legally write off–the most common being … Read More

Priority Debts in an Asset Case

Wasson and ThornhillChapter 7

If you have a Chapter 7 asset case, your bankruptcy trustee collects and sells your asset and pays your priority debt with the proceeds.   Our last blog post was about what happens to priority debts in a no-asset Chapter 7 case. Most consumer “straight bankruptcy” Chapter 7 cases are no-asset ones. This means that the bankruptcy trustee does not … Read More

Challenged Co-Signed Debt

Wasson and ThornhillBankruptcy Advice

If you have a co-signed debt, your discharge of that debt may be challenged by either the cosigner or the underlying creditor.   Last week we discussed obligations on co-signed debts, both to the joint creditor and to your co-signer. In that discussion we assumed that both those obligations could be discharged (written off) in bankruptcy. But what if the … Read More

More Resolving Mortgage Accounting Disputes

Wasson and ThornhillHome Mortgages

Chapter 13 gives you a good way to resolve accounting disputes about a lender’s additional fees and charges, and whether you’ve cured the default.   Last week we described a Chapter 13 procedure to force mortgage lenders to resolve mortgage accounting disputes. This procedure focuses on changes to the monthly mortgage payment amount during the case. These are often just … Read More

Resolve Mortgage Accounting Disputes

Wasson and ThornhillHome Mortgages

It’s often hard to get straight answers from your lender about the right monthly payment amount. Here’s one way to resolve mortgage accounting disputes.   Catching Up on Your Mortgage over Time A Chapter 13 case gives you the power to catch up on your home mortgage(s) over an extended period.  This “adjustment of debts” type of bankruptcy can give … Read More

Bankruptcy Buys Time to Sell Your Home

Wasson and ThornhillSelling Your Home

Chapter 7, in the right situations, buys time to sell your home. It may buy only a couple of crucial months, or sometimes much longer.   Our last several blog posts have been about using bankruptcy to either prevent various kinds of liens hitting your home or deal with those liens if they happen. For example, in the last few … Read More

Bankruptcy Protects You from Your Homeowners’ Association

Wasson and ThornhillBankruptcy Options

Homeowners’ association debts are dangerous. Chapter 7 may help, but Chapter 13 protects you better by giving you lots of time to catch up.   Filing bankruptcy gives you limited, but potentially very useful protection from your homeowners’ association liens and debts. A Chapter 13 “adjustment of debts” filing could especially help. Your Homeowners’ Association Is a Particularly Dangerous Creditor … Read More

Prevent Income Tax Liens with Chapter 13

Wasson and ThornhillIncome Taxes

Chapter 13 can prevent income tax liens on dischargeable taxes. But it’s riskier. It takes years, and you may pay some of that tax.     Two weeks ago we showed how the filing of a bankruptcy case stops the recording of an income tax lien.  A bankruptcy filing imposes the “automatic stay.” That law makes it illegal for the … Read More

Remove a Judgment Lien from Your Home

Wasson and ThornhillCreditor Lawsuits

One great benefit of bankruptcy is the ability to remove a judgment lien from your home. It’s almost as helpful as writing off that debt.   The Problem, and the Bankruptcy Solution Do you have a judgment lien on your home? If so, the debt on that judgment is secured by whatever equity you have in your home. The debt … Read More

Catch up on Property Taxes through Bankruptcy

Wasson and ThornhillHome Foreclosures

Bankruptcy helps you catch up on property taxes: Chapter 7 discharges other debts, Chapter 13 helps with your mortgage & other special debts.   Bankruptcy Stops a Property Tax Foreclosure Filing either a Chapter 7 “straight bankruptcy” or a Chapter 13 “adjustment of debts” case stops a foreclosure by your property tax authority. Filing bankruptcy stops most forms of debt collection … Read More

Afford to Pay Your Home Mortgage through Bankruptcy

Wasson and ThornhillHome Mortgages

Chapter 7 clears away your other debts so that you can afford to pay your home mortgage. Chapter 13 does so by helping you deal with special debts.   Both Chapter 7 and Chapter 13 Improve Your Cash Flow A Chapter 7 “straight bankruptcy” case would very likely quickly write off (“discharge”) many of your debts. For many people it discharges most … Read More

Protect Future Home Equity with Bankruptcy Now

Wasson and ThornhillHomestead Exemption

An underappreciated benefit of filing bankruptcy now is that doing so will protect the equity that your home will build in the future.   Our last blog post discussed how to protect the equity currently in your home through the homestead exemption. We discussed property exemptions in bankruptcy in general, and federal and state homestead exemptions in particular. Overall we showed how … Read More

More Ways Bankruptcy Benefits Your Home

Wasson and ThornhillHome Foreclosures

Bankruptcy helps with more than just your mortgage. You can avoid, or deal constructively with, judgment, income tax, support and HOA liens.   Last week we gave you 7 ways that bankruptcy can either save your home now or protect it going forward. Here are the remaining 8 ways (#8 through #15), mostly involving involuntary liens placed on your home … Read More

List of How Bankruptcy Benefits Your Home

Wasson and ThornhillHome Mortgages

If you’re having trouble making your mortgage payments, or other home-related debts, here’s a list of the many ways how bankruptcy can help.   Here’s the List We’ve got a list of 15 separate ways that bankruptcy can either save your home now or protect it in the near future. Here are the first 7—the other 8 we’ll give you … Read More

Reducing Payments on Furniture and Other Secured Debt

Wasson and ThornhillSecured Debts

You can lower your monthly payments, the interest rate, and amount you pay on furniture purchases, secured credit cards, and pawn loans.   Our last 4 blog posts have been about Chapter 13 cramdown of vehicle loans. For most people filing a consumer bankruptcy case, their vehicle loan is their largest and most important personal property debt. But cramdown can also … Read More