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
Bankruptcy and Your Debts
Bankruptcy resolves your debts. How it does so depends on whether your debt is secured, priority, or general unsecured. Your debts are the reason you are reading this. You want to know how bankruptcy would deal with your debts. Will bankruptcy write off all your debts? Can you keep paying some of your debts like a vehicle loan or … Read More
General Unsecured Debts in Chapter 13
Under Chapter 13, unlike Chapter 7, you pay your general unsecured debts as much as you can for 3 to 5 years, although often not very much. Our last blog post was about how Chapter 7 “straight bankruptcy” deals with “general unsecured debts.” Mostly, they are discharged—legally, permanently written off. There are some exceptions. At the end of the … Read More
How Chapter 7 Deals with General Unsecured Debts
In a Chapter 7 case your unsecured debts are either priority or general unsecured. Chapter 7 legally writes off all or most of the latter. Last time we said there are two kinds of unsecured debts, “priority” and “general unsecured”: “Priority” debts are those that the law treats as special for various reasons. Past-due child support and unpaid recent … Read More
Unsecured Debts
Unsecured debts are not legally attached to anything you own. They have no security. Certain special unsecured debts are “priority” debts. Unsecured Debts Debts that are unsecured are those which are not legally tied to anything you own. The creditor has no “security” attached to the debt, no “security interest” in anything. It has no right to repossess or … Read More
Dealing with Simple and Difficult Debts in Chapter 7 and 13
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
Example of a Completed Chapter 13 Case
What does the completion of a successful 3-to-year Chapter 13 case look like?What happens to your assets and debts?
Different Types of Debts in a Chapter 13 Plan
The laws about the treatment of different types of creditors can often be used in your favor to pay who you want or need to pay.
Object to a Debt You Do Not Owe
If your liability dispute with your creditor spills into your Chapter 13 case, the bankruptcy court may be a good forum to fight it out.
Pay Nothing on Most Debts in Chapter 13
In some jurisdictions you can pay nothing to your “general unsecured” creditors, if all your money goes to paying higher priority ones.
Sometimes Some Creditors Are Paid Nothing in Chapter 13
Chapter 13 payment plans usually have you pay something to all of your creditors. But not necessarily. Certain creditors may get nothing.
Proofs of Claim of General Unsecured Creditors in Chapter 13
Often creditors’ proofs of claim do not affect the amount you have to pay in a Chapter 13 case. But sometimes they make a huge difference.
General Unsecured Debts Written Off under Chapter 13
To the extent you do not pay off your debts during a Chapter 13 payment plan, the remaining balance is usually legally written off forever.
Simple Debts Discharged in Chapter 7
In most straightforward Chapter 7 cases all debts not secured by any collateral are discharged–forever written off. You pay nothing on them.
The Benefits of a Second Mortgage “Strip”
“Stripping” off a second mortgage has major immediate and long-term benefits.
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