By Scott Riddle Posted in Chapter 7One basic principle of Bankruptcy is that there is usually no “marital penalty” and individuals are still able to file for Chapter 7 or Chapter 13 based on their own financial circumstances and not the separate finances of their spouse. In fact, even in a joint Bankruptcy case filed by spouses, there are still technically… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7One thing that Bankruptcy lawyers generally agree on is that it is very difficult to get a discharge of student loans and other educational obligations under the Bankruptcy Code and the cases that interpret the law. We discussed the legal test in this post, and under the law we often say that a discharge takes… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7Update – Lien Stripping is no longer allowed in any Chapter 7 case. In this post about lien stripping, we discussed the significant benefits of “stripping,” or removing, second or third liens from homes when the value of the home is less than the higher priority liens. The ability to strip these wholly unsecured liens… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 11,Chapter 13,Chapter 7The Bankruptcy discharge is what it is all about. It is why people file for Bankruptcy, even though they also benefit from the automatic stay, lien stripping and other advantages in Bankruptcy. Even if some debts are excepted from the discharge, the Bankruptcy discharge typically frees up enough money to that the individual or couple… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7One of the more common concepts in Bankruptcy Court, and most other courts, is that if a party does not respond or object to the relief requested by another party, the relief is deemed unopposed. Most commonly, that comes up when a defendant does not timely file an answer to a complaint and a default… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7The great majority of people who have to file a Bankruptcy case receive a full discharge of all of their unsecured debt, such as credit cards and medical bills, and many also receive a discharge of their secured debts unless they choose to reaffirm the debts. However, there are categories of debts that are not… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7One of the great benefits of a Chapter 13 case (and, as discussed below, Chapter 7 cases in some states) is the ability to “strip,” or remove, a second or junior lien from your house if the value of the house is less than the outstanding balance of the first, or senior, lien. For example,… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7Student loans have become a huge burden in the United States. Recent statistics show that current outstanding student loan debt is more than $1.1 Trillion. That is “Trillion” with a “T.” We can point our fingers in many directions to cast the blame for this high number, including lenders, borrowers, schools, and the federal government,… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7When people buy a house, they probably consider it the biggest investment of their life to that point. It is probably also their largest debt. For homeowners facing Bankruptcy, the most important question they have in initial meetings with lawyers is whether they will be able to keep their house after they file. One important… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7If you own a house, chances are real good that your home loan is your largest debt – maybe even larger than all your other debts combined. It makes sense that people who have to consider Bankruptcy are very concerned about what will happen to their home. The most common question is whether they will… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 11,Chapter 13,Chapter 7A “Discharge” in a Bankruptcy case is a permanent release from personal liability for certain debts. A discharge comes in the form of a Court order, and is permanently enjoins a creditor from trying to collect a discharged debt. In most personal Bankruptcy cases, the discharge of debt is the most important goal in the… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7Chapter 7 Bankruptcy is one of the two most common types of Bankruptcy filed by individuals (the other being Chapter 13). The major distinction between the two is that there is no payment plan in a Chapter 7 case and a typical Chapter 7 cases only lasts about 4 months instead of 3-5 years for… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 11,Chapter 13,Chapter 7Much like the question of whether there is a Constitutional right to file for Bankruptcy, the question of whether the Bible mentions or supports a Bankruptcy filing is one that comes up more in lawyers’ marketing materials than in actual discussions with clients. The analysis is just as often inaccurate, if not misleading. However, unlike… Continue Reading
