Stripping a Second Mortgage with Chapter 13

Wasson and ThornhillHome Mortgages

Under the right circumstances bankruptcy can strip a second (or third) mortgage off your home’s title, and radically reduce how much you pay.   Summary Do you have a second or third mortgage on your home? Imagine if you could stop paying that monthly mortgage payment. Imagine over the course of the next 3 to 5 years paying only as … Read More

A Powerful, Affordable, Flexible Way to Catch up on Your Mortgage

Wasson and ThornhillHome Mortgages

Chapter 13 gives you a powerful, affordable, flexible, safe and successful method to catch up on your missed payment and save your home.   Chapter 7 “Straight Bankruptcy” and Chapter 13 “Adjustment of Debts” The two main consumer bankruptcy options are Chapter 7 and Chapter 13.Most Chapter 7 cases only takes a few months—usually 3 to 4 months—from filing to … Read More

Use Chapter 13 to Protect Home Equity

Wasson and ThornhillHomestead Exemption

Chapter 13 gives you a unique, safe, flexible, and practical way to protect home equity that is larger than your homestead exemption.   The Problem of Too Much Home Equity Our last two blog posts were about protecting the equity in your home through the homestead exemption. Two weeks ago was about protecting the current equity; last week about protecting future equity. The blog … Read More

The Homestead Exemption in Chapter 7 Bankruptcy

Wasson and ThornhillHomestead Exemption

The homestead exemption protects the equity you have in your home. If you don’t have too much equity, consider Chapter 7 bankruptcy.   Our last two blog posts outlined 15 separate ways that bankruptcy can protect your home now and/or in the future. We’ll be explaining each one of these ways in 15 separate blog posts. Here is the first … Read More

Example of Vehicle Loan Cramdown

Wasson and ThornhillVehicle Loans

This example of Chapter 13 vehicle loan cramdown illustrates better than any list of rules how you can save money immediately and long-term.   Our last 3 blog posts have been about Chapter 13 cramdown of a vehicle loan. Cramdown can reduce your loan’s monthly payments, its interest rate, and the total you pay for your vehicle. Often you end … Read More

Qualify for Cramdown of Your Vehicle Loan

Wasson and ThornhillVehicle Loans

You qualify for cramdown (reducing your monthly vehicle loan payment and total paid until you’re free and clear) mostly through good timing.   Last week’s blog post was about lowering monthly vehicle loan payments through Chapter 13 cramdown. This also often reduces how much you end up paying on the loan, and often even reduces its interest rate. Cramdown usually … Read More

Keep Your Vehicle without Reaffirming Its Loan?

Wasson and ThornhillVehicle Loans

Can you keep your vehicle without signing a reaffirmation agreement and putting up with the risks of owing a debt after a future repossession?   Last week we discussed keeping your vehicle in Chapter 7 by entering into a reaffirmation agreement with your vehicle lender. Through this agreement you exclude your vehicle loan from the discharge (legal write-off) of your debts. In … Read More

Dealing with a Debt Sold to a Collection Agency

Wasson and ThornhillDischarge of Debts

You should list all your debts when you file bankruptcy, but what if one was sold to a collection agency without you knowing about it?   Our blog post two weeks ago was about needing to list all your debts in a bankruptcy case in order to write them off. This is part of a series of blog posts about … Read More

Bankruptcy Discharges Debts from Non-Intoxicated Vehicle Accident

Wasson and ThornhillVehicles & Bankruptcy

Bankruptcy discharges claims against you from a vehicle accident, even if you don’t know how much you owe. But not if you were intoxicated.   Vehicle Accident Claims If you had a vehicle accident, you could owe many kinds of debts from it.  You could be liable for the current and future medical bills, loss of wages, pain and suffering, … Read More

Student Loans that Cause Undue Hardship Can Be Discharged

Wasson and ThornhillStudent Loans

Bankruptcy does discharge a student loan, but only if it meets a tough legal standard called undue hardship. Here’s what you need to prove.   Criminal fines and restitution and child and spousal support are types of debts that bankruptcy essentially never discharges. Income taxes can be discharged but only after meeting certain conditions. We’ve covered these in our last … Read More

Bankruptcy Discharges Income Tax Debts (Some of Them)

Wasson and ThornhillIncome Taxes

Bankruptcy discharges income tax debts. They just need to meet some conditions, mostly based on when they were due and whether and when filed.   Bankruptcy DOES Write Off Income Taxes There are certain very special debts that bankruptcy never discharges (writes off). Child and spousal support is a good example. See Sections 523(a)(5) and 101(14A) of the U.S. Bankruptcy Code. Income taxes are … Read More

Bankruptcy Wipes Out Debts

Wasson and ThornhillDischarge of Debts

You know bankruptcy wipes out debts. But WHEN it does so is very different with Chapter 7 vs. Chapter 13. Either way, at the end they are gone.   The main goal of most consumer bankruptcy cases is to get a fresh financial start through writing off debts.  The legal bankruptcy term for write-off is “discharge.” In virtually all successful … Read More

Resolve Your 2018 and Earlier Income Tax Debts through Chapter 13

Wasson and ThornhillIncome Taxes

Do your 2018 taxes just add to your earlier income tax debts, making it all the more unmanageable? Chapter 13 may be your best solution.   Last week we got into a big advantage of filing a Chapter 13 “adjustment of debts” case in early 2019. Doing so enables you to include 2018 income taxes into your Chapter 13 payment … Read More

Get Rid of More Income Tax Debts through Bankruptcy in 2019

Wasson and ThornhillIncome Taxes

Discharge more income tax debts through smart timing. You may be able to do so by filing your bankruptcy after certain dates of 2019.   The right timing of the filing of a bankruptcy case can make a tremendous difference. Our last 8 blog posts have all been about smart timing. If you need to use the bankruptcy laws to … 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