We all know that individual tax returns are due on April 15 (or a day or two later if April 15 is on a weekend). But Congress inserted a little tax time craziness into sections 1308 and 1307 of the new and drastically unimproved Bankruptcy Code of 2005. Section 1308(a) states: (a) Not later than [...]
Chapter 13
Bankruptcy! I don’t want to file bankruptcy! Hey, if you do want to file, there is something wrong with you. But you want to keep your house? Avoid foreclosure? Which option hurts more: losing your home, or, filing bankruptcy? We humans make decisions based on our emotions: we shy away (or run, if you are [...]
Filing a Chapter 7 or Chapter 13 bankruptcy can get your Driver’s License back for you when you have lost your license because of no have insurance! Many States require people that own cars to have motor vehicle liability insurance. These laws, often called compulsory motor vehicle liability laws, generally require that if you own a car, that [...]
I wrote about attorney fees as a means test deduction some time ago. BAPCPA’s provision, codified at section 707(a)(2)(A)(iv) of the Bankruptcy Code, says that priority claims are deducted from income. Priority claims include a Chapter 13 debtor’s counsel’s fees. See sections 507(2), 503(b)(2), and 330(a)(4)(B). Therefore, our attorney fees are a means test deduction. Oddly, the [...]
As a Consumer Bankruptcy Attorney, I really enjoy explaining the benefits of Chapter 7 Bankruptcy and Chapter 13 Bankruptcy to a potential client. Bankruptcy is a financial planning tool, plain and simple, kind of like a Swiss Army Knife. Inside this one tool, you have many different options. I enjoy watching their faces light up [...]
The majority of Chapter 7 bankruptcies in most jurisdictions end up being no-asset cases. This means that all the debtor’s assets are exempt. In such a case there are no assets for the trustee to administer and distribute to creditors. An exempt asset is an asset that can be removed from a debtor’s estate under [...]
