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 […]
Category Archives: Chapter 13
Presto, change-o! Converting a bankruptcy case
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 […]
Also posted in Chapter 7, Practical tips
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The different kinds of bankruptcy trustees
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 […]
Also posted in Chapter 7
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Should bankrupt debtors be allowed to save money?
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 […]
Posted in Chapter 13
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Chapter 13 Tests
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 […]
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Bankruptcy and divorce: can the bankruptcy court step in and re-do your divorce settlement?
Bankruptcy and divorce — those handmaidens of a whopping mid-life crisis — are serviced by competing court systems with competing and confusing rules and requirements. Here is a guide to (at least partially) untangling the mess. First, since 2005 there has been a notion in the bankruptcy courts of something called a “domestic support order,” […]
Also posted in Chapter 7, The Bankruptcy Code
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Confusion reigns on whether a means test is needed when converting a bankruptcy case to Chapter 7
If you file a Chapter 7 bankruptcy case, debtors with mainly consumer debts have to also file a “means test,” which proves they qualify for Chapter 7 relief based on their recent income. If you file Chapter 13 case, there is no pure means test (although there are qualifications), but you file a very similar […]
Also posted in Chapter 7, The Bankruptcy Code
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Is renting out your house a way to save it?
Under the present bankruptcy law, it is very difficult to use a Chapter 13 bankruptcy plan to impose your own mortgage modification on the primary lender for a residential home. There have been near constant efforts to get the Congress to change this, but so far the pleas have fallen mostly on deaf ears. The […]
Also posted in Real estate, Secured loans
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Can a bankruptcy trustee tell you where to do your banking?
Can a bankruptcy trustee force you to do business with a certain bank after a case is filed? In Massachusetts, the answer appears to be “no,” but it’s not for lack of trying. In a Chapter 13 case, if the debtor is self-employed or runs a small business, they are required to establish a new […]
Posted in Chapter 13
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The basics of lien stripping and second mortgages
Time for a little stripping, anyone? I’m not suggesting that you show up at the Cabaret Lounge with a fistful of dollars; instead, I’m thinking you might want to know how to get rid of a second mortgage with a Chapter 13 bankruptcy case. Brett Weiss, an attorney from Maryland, explains the basics of how […]
Posted in Chapter 13
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