Chapter 13 is better than Chapter 7 if you need to stop the aggressive collection of past-due support, if you meet some ongoing conditions. Last week we showed how Chapter 13 stops the collection of past-due child and spousal support, while Chapter 7 doesn’t. But we ended by emphasizing that anyone can quickly lose this huge benefit of Chapter … Read More
One of the smartest ways to pay your priority debts—including recent income taxes or child/spousal support arrearage—is through Chapter 13. Priority Debts under No-Asset and Asset Chapter 7 Our last two blog posts described how Chapter 7 can sometimes be a sensible way of dealing with priority debts. (Those are ones you can’t “discharge”—legally write off–the most common being … Read More
In a Chapter 7 no-asset bankruptcy case, the trustee collects nothing from you and pays nothing on your debts, including your priority ones. Most Chapter 7 Cases Are No-Asset Cases Chapter 7—“straight bankruptcy”—is the most common type of consumer bankruptcy case. They are generally the most straightforward, lasting about 4 months start to finish. Usually everything you own is … Read More
Chapter 7 “straight bankruptcy” doesn’t stop aggressive collection of back support. But Chapter 13 does, and protects you while you catch up.