A Preference Example

Wasson and ThornhillPre-Bankruptcy Planning

Here’s an example of a preference—paying a favored debt before filing bankruptcy.  If you know what it is, it’s usually not hard to avoid.   Last week we explained why paying a creditor before filing bankruptcy could cause problems during bankruptcy. That’s especially true if the creditor you pay is one that you have personal reasons to favor. We explained the circumstances in which such a … Read More

When Gift-Giving Is a Fraudulent Transfer, and When It Isn’t

Wasson and ThornhillBankruptcy Law

Gift-giving, including selling something for much less than it’s worth, can be a problem in a latter bankruptcy. But usually it’s not.   Most people filing bankruptcy have neither a need nor the desire to hide anything from their creditors. There’s no need because most people’s assets are already protected through state and federal laws. There’s no desire because most … Read More

Unexpected Benefit: Keep Vehicle Lease in Chapter 13

Wasson and ThornhillVehicles & Bankruptcy

Chapter 13’s main advantage over Chapter 7 with a vehicle lease is that you get much more time to catch up if you’re behind on your payments.   Vehicle Lease Assumption under Chapter 7 Our last blog post showed how to keep a leased vehicle by “assuming” the lease in a Chapter 7 case. This means you keep making the … Read More

Unexpected Benefit: Keep Vehicle Lease in Chapter 7

Wasson and ThornhillVehicles & Bankruptcy

If you want to keep your vehicle lease and are current you likely can under Chapter 7. You “assume” your lease contract and all of its terms.     Our last three blog posts have been about rejecting a vehicle lease and giving the vehicle back to the lessor. You can do this either through Chapter 7 or 13. The result is the … Read More

Unexpected Benefit: Vehicle Loan Cramdown, Illustrated

Wasson and ThornhillVehicles & Bankruptcy

Chapter 13 can often give you the ability to reduce both your monthly payment and the total you pay on your vehicle loan. Here’s how it works.   Cramdown in Chapter 13 Last week we introduced cramdown as an extremely helpful tool for reducing the cost of your vehicle loan. Cramdown can often: Reduce your monthly payments—sometimes significantly. Reduce the … Read More

Unexpected Benefit: Dealing with Your Vehicle Loan in Bankruptcy

Wasson and ThornhillVehicle Loans

Bankruptcy gains you lots of leverage with your vehicle loan. Chapter 7 helps simply by getting rid of most or all of your other debts.   Here’s the Problem You’re paying on a car or truck. You absolutely need this vehicle for getting to work, and to keep your life going. You can’t do without it. But you’re having trouble … Read More

Unexpected Benefit: Use Chapter 7 to Permanently Stop Student Loan Collections

Wasson and ThornhillStudent Loans

Chapter 7 bankruptcy can temporarily stop student loan collections. Here are several ways it can stop these collections permanently.   Bankruptcy gives you tools to deal with special debts—including those you can’t easily write off. Last week we got into income taxes. Today we discuss student loans, focusing on this special kind of debt in Chapter 7 “straight bankruptcy.” Next … Read More

Unexpected Benefit: Use Chapter 13 to Escape a Tax Payment Plan

Wasson and ThornhillIncome Taxes

Chapter 7 can sometimes help you deal with unaffordable income tax payment plan. But Chapter 13 is often a better way to escape a tax mess.   Tax Agreement Payments Too High We laid out the problem last week. You’d entered into a monthly payment plan with the IRS or your state because you couldn’t pay what you owed. But … Read More

Unexpected Benefit: Use Chapter 7 to Escape a Tax Payment Plan

Wasson and ThornhillIncome Taxes

Breaking an IRS/state income tax payment plan usually has very bad consequences. But filing bankruptcy lets you escape a tax payment plan.        Tax Installment Agreement You Can’t Afford It’s a common problem. You owed income taxes a year or two ago when you sent in your tax returns. Money was very tight so you couldn’t just pay it … Read More

Unexpected Benefit: Remove a Judgment Lien from the Title to Your Home

Wasson and ThornhillCreditor Lawsuits

Usually you can’t change a secured debt into an unsecured one, even in bankruptcy.  But you often CAN remove a judgment lien from your home.   We’re on a series of blog posts about the powerful but less obvious benefits of bankruptcy. Bankruptcy can do much more than just give you immediate and long-term relief from your debts. Today we … Read More

Unexpected Benefit: Negotiate Out of a Preference Mess

Wasson and ThornhillBankruptcy Law

Your lawyer can likely negotiate with your Chapter 7 trustee to prevent the forced repayment of your prior payment to a relative or friend.   Our blog post two weeks ago introduced an uncomfortable problem: preference payments to a friendly creditor. (Please read that blog post before reading this one.) Then last week we discussed two possible solutions to this … Read More