A chapter 13 bankruptcy is often viewed as a repayment or reorganization plan, while a Chapter 7 bankruptcy is called a liquidation.   In a Chapter 13, priority debts (back taxes, child/spousal support) are usually paid in full, followed by short-term secured debt (cars, arrearages on mortgages, property taxes, etc.) being paid, and then, if the Debtor’s [...]

Yesterday, major news sources reported that the money set aside by Congress for the “Cash For Clunkers” program was being depleted rapidly (as explained in my blog, “Cash For Clunkers:  Short Deal“).   In Detroit, car dealers were reportedly staying open late into the night in order to have customers be assured of the rebates before [...]

In my bankruptcy practice, I talk to a lot of people who tell me how high their credit score is, or was.  I hear a lot about that from other so-called experts–how important it is to have a good credit score.  There are books, DVDs, seminars, and TV shows devoted to advising you how to [...]

This week, the New York Times reported that consumers who had been the victim of fraud by unscrupulous debt collectors may be getting money back if the New York attorney general is successful in the lawsuit filed against two collection agencies and 35 attorneys.
According to the article, the debt collectors had sued the consumers and [...]

What is an Automatic Stay?
Creditors have many weapons in their arsenal to try to collect on  a debt:

Repeated telephone calls to your house;
Repeated telephone calls to you at work;
Letters, Letters, Letters;
Letters from an attorney;
Lawsuits;
Garnishments.

And this in when the creditor is being nice.
When someone files for bankruptcy they get what is called an automatic stay.
The automatic [...]

When you file a Chapter 13 to restructure your debts, you usually keep making your regular mortgage payments.
In some districts, you make those payments to the Chapter 13 trustee, essentially consolidating all you debt payment.  In those districts the trustee is referred to a conduit for mortgage payments.  In others, you make your mortgage payments [...]

If you decide to file bankruptcy, you must first calculate your “current monthly income.”  Current monthly income (“CMI”) is a highly artificial number that can have big implications on whether you are allowed a Chapter 7 discharge or how much you must pay to your creditors in Chapter 13. Calculating CMI also requires your attorney to [...]

For many years consumer advocates have claimed that the arbitration provided in credit card disputes was not fair to the consumer.  It seemed that the arbitrators always just rubber stamped the claims made by the credit card companies.
Two weeks ago, Minnesota Attorney General Lori Swanson filed a complaint against one of the biggest Arbitration companies, the [...]

States, cities, towns and villages all over the country are in financial distress.  Some, like the village of Johnson City in Broome County, New York are considering merging into the surrounding town of Union.  Others are not paying their payrolls on time, or drastically cutting back on essential services.  At least one town in Indiana is [...]

Don’t Ever Buy Thoughtlessly or you will have DEBT.  If you review your spending patterns you will see that you did not think twice about many of your purchases.  As a result you ask yourself down the road, why did I purchase ***?  In the past I have written about changing your mind set before [...]