Overall, Chapter 7 deals with simple debts as well or better than Chapter 13 does, which deals with more difficult debts better. Debts in Bankruptcy When deciding between Chapter 7 “straight bankruptcy” and Chapter 13 “adjustment of debts” you look at many factors. You have to meet certain qualifications (usually easy to meet) to file either one. The amount … Read More
You can put a “preferential payment” to work for you if you owe a “priority” debt–back child or spousal support, or recent income taxes.
Priority proofs of claim need to be carefully monitored in a Chapter 13 case. Make sure one’s filed so it gets paid, and at the right amount.
During the last 13 blog posts we’ve covered the automatic stay–crucial protection that filing bankruptcy gives you. Here’s a helpful summary.
Even if you file bankruptcy, certain actions can still be taken against you in divorce court, or about family law matters.
A bankruptcy trustee would pay your “priority” debts ahead of other debts in an “asset case.” But what happens in a “no asset case”?
Here’s what happens to “priority” debts in an “asset case.”
What makes “priority” debts so special?
Bankruptcy can’t write off certain kinds of debts. Chapter 13 enables you to prevent liens hitting your home from those debts.
Bankruptcy can’t write off certain kinds of debts. Chapter 7 may give you enough help to avoid liens on your home from those debts.
A support obligation is a very special kind of debt, and the resulting lien on your home has to be dealt with in a very special way.
You can’t legally write off child support or spousal support.
Most debts can be discharged–permanently eliminated–in bankruptcy. Here are the exceptions.
If you have a child or spousal support lien on your home because you’re behind on support payments, with Chapter 13 you can safely protect the home. If you are behind on your support payments, your ex-spouse and support enforcement agencies have tremendous tools to use against you to try to force you to catch up. And if you own a … Read More
We’re lingering in the Thanksgiving spirit by appreciating what Chapter 13 has to offer.