Example: Catch up on Past-Due Support

Wasson and ThornhillChild & Spousal Support

This example shows how well Chapter 13 can protect you from aggressive collection of past-due support and give you a safe way to catch up.   Today we put what we explained in the last three weeks of blog post into a sample Chapter 13 plan. It shows how powerfully Chapter 13 helps you if you owe past due child … Read More

How to Catch up on Unpaid Support with Chapter 13

Wasson and ThornhillChild & Spousal Support

If you owe unpaid support, Chapter 13 gives you a sensible, affordable, and sane way to catch up, while protected from support enforcement.   The last two weeks we’ve shown how Chapter 13 can stop the collection of unpaid child and spousal support. First we talked about how this benefit is much better than Chapter 7 can provide. Then we … Read More

Chapter 7 and Unpaid Child or Spousal Support

Wasson and ThornhillChild & Spousal Support

If you are behind on child or spousal support, Chapter 7 writes off all or most of your other debts so that you can catch up on your support.     If you are behind on child or spousal support payments Chapter 7 may or may not be a good solution. Chapter 7 “straight bankruptcy” is the most common type … Read More

Priority Debts in Bankruptcy

Wasson and ThornhillBankruptcy Law

In bankruptcy some debts are treated much, much better than others. Priority debts are treated much better in various important ways.   Debts Are Different So the Law Recognizes Some Differences The law does not treat all debts the same. That’s because you have different kinds of creditors that you owe for very different reasons. The law tries to be … Read More

Debts NOT Discharged in Bankruptcy

Wasson and ThornhillDischarge of Debts, Uncategorized

Bankruptcy wipes out most debts. The only ones that aren’t are explicitly not discharged under federal bankruptcy law.   Debts Covered by the Discharge The basic rule is that bankruptcy discharges all your debts unless a particular debt fits a listed exception. Focusing on Chapter 7 “straight bankruptcy” today, you will likely receive an Order of Discharge from the bankruptcy court within … Read More

Unexpected Benefit: Use Chapter 13 to Stop Collection of Support Arrearage

Wasson and ThornhillChild & Spousal Support

Neither Chapter 7 nor Chapter 13 stops ongoing child/spousal support payments. But Chapter 13 CAN stop collection of support arrearage.    Most Debts Filing bankruptcy stops—or “stays”—the collection of most debts. (See Section 362(a) of the U.S.  Bankruptcy Code about the “Automatic Stay.”) Then at the end of the bankruptcy case most debts are discharged—legally written off. (Sections 727 and 1328 of the Bankruptcy Code.) At that point … Read More

Chapter 7 with a Current Mortgage But Other Liens

Wasson and ThornhillHome Mortgages

Here are 3 more Chapter 7 scenarios when you are current on your home mortgage but have other liens on your home.   Our last blog post was about situations in which Chapter 7 works well enough in the following 3 debt situations: Second or third mortgages Property taxes Income tax with a lien recorded on your home In general, … Read More