Tax returns can be a trap for the unwary in Chapter 13 bankruptcy. Often, bankruptcy debtors do not have their tax returns squared away and filed before filing for bankruptcy. When non-tax creditors are pursuing you, and you need quick relief, often tax returns are the last thing on your mind. However, the need to [...]
Nicholas Ortiz, Boston Bankruptcy Attorney
The L.A. Dodgers baseball franchise filed for bankruptcy protection today. After a search, I think this is the only place on the “free internet” that the Los Angeles Dodgers’ Bankruptcy Petition can be viewed in its entirety. The list of largest creditors is interesting because it includes many of the Dodger players, including former [...]
I wanted to write something about what makes those who procrastinate file bankruptcy. First of all, procrastination and bankruptcy often go hand in hand. The unknown is scary and making a move during a period of insecurity is hard. Bankruptcy often feels optional at the beginning: maybe that loan modification, family help, or creditor concession [...]
The government can garnish 15 percent of disposable pay to collect a defaulted student loan. They do not need a court judgment to do so. “Disposable pay” means the amount of money left in your paycheck after amounts required by law, like taxes, come out. However, you are always guaranteed to be left with an [...]
The Income-Based Repayment Plan (“IBR”) for student loans is designed to be a better plan than the older Income-Contingent Repayment Plan (“ICR”). Here are some details: * The IBR applies to Direct Loans and government-guaranteed FFEL student loans. * You cannot be in default and enter the IBR, but after you get out of default, [...]
Vendors are often afraid to sell to a bankrupt debtor on normal credit terms. At first glance, this makes a lot of sense. A debtor who is liquidating in bankruptcy doesn’t seem like a very good credit risk. However, what about those businesses seeking to reorganize in Chapter 11? The bankruptcy laws provide incentives and [...]
