By Scott Riddle Posted in Bankruptcy Basics,Chapter 13As discussed in more detail in this post about Chapter 13 Basics and this post about Chapter 13 Plans, and Chapter 13 payments, the basic goal of Chapter 13 is to pay back some or all of your debts over a period of time. Usually, the payment period lasts from three to five years. An… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Creditor Law,Debt Collection & ForeclosureDo you have a friend or relative who just throws money away by spending every penny or running up credit cards and debt on unnecessary things? All of know people who do that to some extent. What if a relative is personal friends with a Nigerian Prince and sends him money on occasion? What if… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13You know that in a Chapter 13 case you have to pay into a Chapter 13 Plan, usually for a period between 36 and 60 months. The amount of your payment is based on your disposable income. How are these payments made to the Chapter 13 Trustee? In the great majority of cases, they are… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13As discussed in our posts on the Chapter 13 Plan and Disposable Income to be paid in the Plan, we are able to include in our budget the “ownership expenses” of vehicles, which basically means the monthly payments due on the car loan or lease (and not “Transportation Expenses” such as gas and maintenance). In… Continue Reading
By Scott Riddle Posted in Chapter 13As we have discussed in other posts, the money that has to be paid into a Chapter 13 Plan is based on calculations of disposable income. Calculating disposable income is both a science and an art, and a good, experienced Bankruptcy lawyer will know how to propose a plan that is in the best interests… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7Household size is an important factor in many consumer Bankruptcy cases. Most importantly, the Means Test figures are based on the size of the household so it is important in determining eligibility for Chapter 7 or Chapter 13 and in calculating disposable income to be paid in the Chapter 13 plan. It is also relevant… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7As discussed in more detail in other posts, to qualify for a Chapter 7 case most people have to “pass” the Means Test, which is based on your income for the six month period before filing. It is normally a straightforward calculation – add up all income you have received in the last six months… Continue Reading
By Scott Riddle Posted in Chapter 13,Chapter 7It is not uncommon for people who file for Bankruptcy to receive an inheritance either during their Bankruptcy case or shortly after their case is over. Is the inheritance part of the Bankruptcy estate and can the Trustee take the inheritance? In either a Chapter 7 or Chapter 13 case, if your relative passed away… Continue Reading
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 13In our overviews of Chapter 13 cases and Chapter 13 Plans, we used the term “Disposable Income.” Disposable Income is one of the most important components of a Chapter 13 case and Plan because that is the portion of your income that you have to contribute to the Plan (via the Chapter 13 Trustee) to… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13The primary difference between a Chapter 7 case and a Chapter 13 case is the Chapter 13 Plan. If you do not qualify for a Chapter 7 case under the Means Test, or you qualify but want to take advantage of benefits of Chapter 13 (such as lien stripping), then you will submit a Chapter… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13Chapter 13 Bankruptcy is one of the two most common types of Bankruptcy filed by individuals, with the other being Chapter 7. The primary distinguishing factor of Chapter 13 is that individuals pay a portion of their income (their “disposable income“) into a Chapter 13 plan over three to five years. Because of this, people… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7The Bankruptcy “Means Test” is a form that must be completed by most individuals filing for Bankruptcy. The Test is used in determining whether an individual or couple qualify for a Chapter 7 case or whether they have sufficient disposable income (or “means”) to pay something to creditors in a Chapter 13 plan. Importantly, the… Continue Reading
