Chapter 7 Bankruptcy

Chapter 7 offers many advantages over Chapter 13: faster process – 5 months vs. 5 years lower cost more complete relief from debts When I meet with a prospective client, I start my evaluation by by asking “can this person fit into a Chapter 7?”

Social Security benefits are well protected in bankruptcy.  And that often means they’re protected even from Social Security. Sometimes folks are overpaid by Social Security.  It can happen routinely.  You are on disability but beginning to work again.  When you earn money, you report it to Social Security but, even if you are making too […]

Did you know that your time in Chapter 7 is an ideal time to negotiate extremely favorable buy outs or payment terms for secured debts?  Because you have the option to surrender secured collateral that may have lost significant value, secured creditors are usually willing to accept pennies on the dollar. While most people see […]

Should a Debtor in a Chapter 7 bankruptcy in Florida reaffirm their mortgage or second mortgage?  Good Question.  The Creditors think so. The case law is unclear (at least to me), and the debtors want a ride through (ability to pay as you go without reaffirming or redeeming).  This is one issue where the Bankruptcy […]

Missouri bankruptcy filers have more protection for their tax refunds now.  Particularly working families have more certainty their financial needs won’t be disrupted when they need to file Chapter 7. Last year the Missouri legislature unanimously passed a bill that, among other things, provided an exemption for a “public assistance benefit.”   I theorized at the […]

Chapter 7 bankruptcies fix things; Chapter 13s allow the debtor to fix things.   There are two main types of bankruptcies for consumers, and many articles have been written here at the Bankruptcy Law Network about the differences between Chapter 7s and 13s.  You can look at posts by Susanne Robicsek, Kevin Gipson and me, […]