Yes, it’s a requirement of the Bankruptcy Code. If you want to keep your car loan, you’ll need to agree to reaffirm that particular debt. Even though you’re going to receive a discharge of your debts in Chapter 7, if you fail to make car loan payments then the secured creditor holding that reaffirmed debt […]
In a Chapter 13 bankruptcy, a key part of the process is a plan which the debtor and the debtor’s attorney file with the Bankruptcy Court. This plan explains how the classes of creditors are going to be paid. The rules for Chapter 13 plans are quite rigid with the statute stipulating how the debtor […]
Chapter 7 provides the greatest possible relief from dischargeable unsecured claims (credit cards, mortgage deficiencies, medical bills, etc.). The debtor keeps exempt property and the case is closed after about four or five months. This makes a Chapter 7 Bankruptcy a very desirable remedy. Sometimes, though, a Chapter 13 Bankruptcy is an alternative that can’t […]
A Ponzi scheme is a criminal activity where someone who buys and sells investments – collects money in exchange for promising an enormous return. The Ponzi criminal then pays the first people investing in the scheme with the money that the last people invested. The scheme is criminal and fraudulent because there’s really no investment, […]
The short answer to that question is definitely “No!”. Don’t do that because it would be considered a transfer with the intent to defraud, hinder, or delay your creditors, if done approximately within a year before bankruptcy. And, if you do make such a transfer, the court will deny you a discharge if the trustee […]
The short answer to that question is: yes, the trustee can indeed sell property owned jointly. The trustee has the power, under the Bankruptcy Code, to sell property free and clear of the interest of a co-owner in that property. As long as the trustee turns the net proceeds in that property over to the […]
In Chapter 7 bankruptcy, a debtor needs to complete a form that discloses all income and authorizes certain expense deductions to determine if the person qualifies for Chapter 7. This is called the means test. The income includes wages, interest, dividends and, if applicable, alimony and child support the debtor receives. If after adding this […]
The rules concerning the venue of where a debtor can file a bankruptcy case offer a variety of choices. A person or entity seeking bankruptcy may file a case where they: Live Intend to live permanently Work Have most of their property Have a related person or entity that has already filed for bankruptcy An excellent example of […]
The answer to this question depends on if you have equity in your home and if you’re behind in your mortgage. If there is no equity in your home, which means that the amount that you owe on the mortgage is more than the house is worth, and you are current on that mortgage, you’re […]
Chapter 7 relief is not necessarily denied to a debtor just because their income is above the median income for their state. Such debtors may still qualify for Chapter 7 relief, but they will have to complete the seven page long form instead of completing the one page short form. The long form contains a […]
