A Chapter 13 bankruptcy - the 3-to-5-year legal procedure for “adjustment of debts”—can help you in two huge ways with an ex-spouse who is unhappy with you for not paying a debt you owe to him or her: It can discharge (legally write-off forever) non-support “property settlement” obligations owed to your ex-spouse through your divorce decree. It can give you time to catch up on child support, … [Read more...]
Dealing with a Debt Collector’s Threat to Fight Your Intended Discharge of the Debt
The goal of most bankruptcies is the “discharge:—the legal write-off of debts. If you are thinking about filing bankruptcy to get a fresh financial start through a discharge of your debts, and a debt collector tells you that you won’t be able to discharge that debt, is that true? Is it likely a valid threat? Idle Threats? Most of the time that a creditor or collector is telling you that a … [Read more...]
Good Reasons to File Chapter 13 Even When You Won’t Get a Discharge
A recent blog post discussed how you don’t have to wait the usual period of time to file a second bankruptcy case if that new case does not discharge any of your debts. Usually you would have to wait 4 years between filing a Chapter 7 “straight bankruptcy” and a subsequent Chapter 13 “adjustment of debts” one. But you don’t have to wait out that 4 or any of the usual time periods if you don’t … [Read more...]
Filing Bankruptcy a Second Time
The Rules for Time Required between Bankruptcy Filings How long you must wait to file a bankruptcy case after you’ve filed a previous one depends on both which Chapter the earlier bankruptcy was filed under and the Chapter of the new case being filed: 2 years from an earlier Chapter 13 case to new Chapter 13 one 4 years from earlier Chapter 7, 11, or 12 case to new Chapter 13 one 6 years … [Read more...]
Potential Traps in Surrendering an Out-of-State Home
If you have moved recently to New Jersey and own or recently owned a house in the state you lived in before, and you are surrendering that home to the mortgage company, that house could possibly still be a source of significant problems. Those problems can continue after you thought that the house was foreclosed. Also, there are important issues to keep in mind even after you file a bankruptcy … [Read more...]
Choosing Between Chapter 7 and 13 if You Have Student Loans
Discharging—legally writing off—student loans is quite difficult under either Chapter 7 “straight bankruptcy” or Chapter 13 “adjustment of debts.” The pertinent law, Section 523(a)(8) of the United States Bankruptcy Code, says is that a student loan is not discharged unless it “would impose an undue hardship on the debtor and the debtor’s dependents.” “Undue Hardship” Congress did not define … [Read more...]
Choosing Between Chapter 7 and 13 if You Owe Money to Your Ex-Spouse
The Main Differences Here between Chapter 7 and 13 Child and spousal support CAN’T be discharged (written off) under EITHER Chapter 7 “straight bankruptcy” or Chapter 13 “adjustment of debts.” But other kinds of divorce obligations—sometimes called “property settlement” debts—CAN be discharged, but ONLY under Chapter 13. Also, if you are behind in your support payments, Chapter 7 CANNOT stop … [Read more...]
Choosing Between Chapter 7 and 13 while Continuing to Operate Your Business
Chapter 7 and Chapter 13 Are Quite Different “Straight bankruptcy” Chapter 7 is a “liquidation” procedure. Your assets are reviewed, mostly by you listing them by categories in the bankruptcy “schedules,” with the help of your attorney, and being asked questions about them by the Chapter 7 trustee, both while you’re under oath. The trustee determines whether you have any assets that are not … [Read more...]
How Chapter 13 Helps If You’re Behind on a Vehicle Loan
Falling behind on a vehicle loan is a scary experience, especially if you are rely on your vehicle to get to work (or to find work!), and to take care of life’s other necessities. It is all too easy to get your vehicle repossessed—vehicle lenders’ contracts usually let them to do as soon as you are late on your payment. Limitation under Chapter 7 “Straight Bankruptcy” Once you have fallen … [Read more...]
Choosing Between Chapter 7 and 13 after Closing Your Business
If you’ve already closed down your unsuccessful business, or are thinking of closing one you are now operating, you no doubt are wondering about the best way to deal with the debts that are now saddling you from that business. The answer depends on many factors, including the type of debts that you owe. Here are the main types of business debts, and how Chapter 7 and Chapter 13 would each deal … [Read more...]
