exempt Tag

26 Jun Chapter 13 Bankruptcy Plan Payments Can be Lowered if Your Income Decreases

When a Chapter 13 bankruptcy plan gets confirmed by the Bankruptcy Court, the monthly payments you are supposed to pay to the trustee are set by the confirmation order. But they are not always set in stone. A Chapter 13 bankruptcyPlan can usually be modified if there is a significant and unanticipated change of circumstances, such as an unexpected reduction in income. In many cases your lawyer can make a motion to modify the confirmed plan. If you have less money to pay to the trustee, you can propose to lower the monthly payments. You can also propose tolower the percentage being paid to the unsecured creditors, and toextend the duration of the plan to 60 months, if it not already a 60 month plan. If you are proposing to lower your monthly payments, you will also have to submit a new budget (Schedules I & J). This amended budget must show that your current household income and expenses have decreased your disposable income to the amount you are proposing to pay in your modification. There may be some limitation to how much you can lower your payments to the Trustee.
Read More

30 Sep Can I Keep My Non-Exempt Assets in Bankruptcy?

If you file a Chapter 7 Bankruptcy, the Chapter 7 trustee will determine if the items you own (your assets) are exempt.  To the extent that they are exempt, they are protected from the reach of the trustee and your creditors.  Exemptions are determined by the Federal Bankruptcy Law or the Exemption laws of your state. In New York State, for example, you can exempt $50,000 of equity in your home, $2,400 in your vehicle, $600 in tools, and $2,500 in household goods.  If, say, your vehicle is worth $6,000 with nothing owed against it, then the Chapter 7 trustee can take the vehicle, sell it, give you your $2,400 exempt value, and use the rest to pay towards your creditors. If you file Chapter 7 and want to keep an asset that is worth more than the applicable exemption, you usually can, if you offer to buy out the trustee’s interest. 
Read More

29 Sep Can I File Bankruptcy if My Only Income is Social Security?

If your only income is Social Security or SSD, you can file bankruptcy. But you may not have to. If you do not plan on going back to work, you may not need to file bankruptcy because you are considered to be "judgment proof". That means that while your creditors can sue you and obtain a judgment, they may not be able to collect anything from you. Creditors generally cannot recoup any money from your social security income. You should determine, however, if you own any other real or personal property that creditors could get their hands on. It is best to review your situation with an experienced consumer bankruptcy attorney.
Read More