If you are filing for bankruptcy, one thing you might want to keep in mind is your upcoming relationship with the trustee assigned to the case. Although debtor-trustee relationships are sometimes combative, they don’t have to be, and usually aren’t. All in all, debtors fare better, and things go smoother, when the trustee is in [...]

Here’s a little primer on Lien Stripping and Cramdown by a Massachusetts bankruptcy lawyer who has done many of these cases. If you are a homeowner and wish to restructure your debt repayment under Chapter 13 bankruptcy it may be possible to have the court discharge the second mortgage on your home through a process [...]

Talk to a bankruptcy lawyer, and it won’t be long before he’ll start spouting off about “chapters,” as if he was the deranged leader of Oprah’s book club: “First you’ve got Chapter 7, then Chapter 13, and there’s always Chapter 11, and even chapters 9, or 12 and 15 . . . ” Potential bankruptcy [...]

It’s one of the most popular questions at my office, and perhaps rightfully so: “How long does a bankruptcy take?” It’s also not really the right question to be asking, but let me explain: If someone is asking “How long does it take to get started?”, the answer is simple: usually right away. Call for [...]

One difference between filing for bankruptcy under Chapter 7 and filing under Chapter 13 concerns how the means test for the different chapters treat contributions to retirement accounts such as 401(k) and IRA plans. In Chapter 7, any contributions you make are ignored. However, in Chapter 13, contributions to a retirement plan can reduce the [...]

If you are thinking of filing for bankruptcy, and still need basic transportation to get to work and tote your family, you could be helped by the notion of “cramming down a car.” Don’t worry; it’s nothing like the picture at left! Actually, its the car loan that you want to cram down, not the [...]

When you file a bankruptcy case, the debtor must choose a particular chapter of the bankruptcy code (chapters 7, 11, 12 and 13 are the most common), and the rules of the chose chapter are then applied to the case. The initial choice of chapter is not forever binding, however. Indeed, debtors have a great [...]

Russell DeMott is a bankruptcy attorney in South Carolina, and he has posted a hilarious article on the internet outlining the differences between Chapter 7 bankruptcy trustees and Chapter 13 bankruptcy trustees. Attorney DeMott’s thesis is that Chapter 7 trustees act like voracious wolverines, chewing through all the debtors they come across in a desperate [...]

Should people be encouraged to start saving money after they have filed a bankruptcy case? Sounds like a no-brainer right? Unfortunately, Chapter 13 of the bankruptcy code does not just discourage saving, but may actually prohibit it. At issue is one line in Chapter 13 that requires debtors who file under that chapter (usually homeowners [...]

Thinking about a Chapter 13 bankruptcy case? Before you can file a case under this chapter of the bankruptcy code, there are a number of “tests” a debtor must pass. Here’s a way to keep track of them all: Debt limits: Chapter 13 has upper debt limits, but no lower limits. The current upper limits [...]