Bankruptcy

Many bankruptcy debtors who wish to keep their motor vehicles often file a Chapter 13. They utilize the concept of the “cram down” which allows the modification of the motor vehicle contract and creates new payment provisions. But individuals who file Chapter 7 cases may also keep their motor vehicles…

foreclosure

If a homeowner has received a foreclosure notice from a lender, such a sale may be postponed by the filing of a Chapter 13 bankruptcy case. A bankruptcy filing places the automatic stay in effect which bars most collection activities by debtors. The automatic stay prevents a lender from foreclosing…

credit card

Surprisingly, many individuals who prepare for filing a bankruptcy don’t know the difference between a secured debt and an unsecured debt. Whether or not the filing of a bankruptcy case is the ultimate goal, knowing the distinction between the two types of debts is significantly important. In Chapter 7 and…

money hands

Once wages or a bank account is garnished, an ensuing Chapter 13 bankruptcy filing will typically stop the garnishment. Having wages reduced by a garnishment often causes financial stress and hardship since it reduces disposable income. Filing a bankruptcy case invokes the unique protection of the automatic stay, which is…

empty pockets

Many individuals believe that they may not discharge taxes in a bankruptcy case, and they would be correct in most, but not all, cases. While most taxes are not dischargeable in bankruptcy, income taxes may, in fact, be discharged in chapter 7, 11, and 13 cases. However, once the IRS…

fraud

Bankruptcy trustees are given the power under 11 U.S.C. § 548 to avoid certain transfers made by a debtor of assets that unfairly place them beyond the reach of creditors. A “fraudulent conveyance” is a transfer of the debtor’s assets to a third party with the intent to prevent creditors…

signing

More than one person, typically a spouse, may be liable for a secured or unsecured debt to a creditor. However, in some situations, only one of the responsible parties, or spouses, may decide to file a bankruptcy case. If a debtor decides to file a Chapter 13, the automatic stay…