Chapter 13 Bankruptcy

Bankruptcy and Tax Debt: What Happens to Tax Debt in Bankruptcy

06/27/11

If I had a nickel for every time I am asked this question, I would have a lot of nickels. The elimination of tax debt in bankruptcy can be a little tricky, and I often like to meet with clients to go over the necessary documents together before I make the assessment of whether or [...]

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Depression, Financial Ills and Bankruptcy

06/24/11

Recently in San Diego, two extreme examples of apparent financial woes have led to tragic ends. http://www.signonsandiego.com/news/2011/jun/07/services-held-two-familie... http://www.signonsandiego.com/news/2011/jun/22/court-documents-show/ I am not trained in the matters of the impact of financial burdens on one’s mental health. I am a counselor, however, a counselor at law. As such, one of my primary duties is to listen to [...]

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What to do if a creditor sends you a Form 1099 trying to make income out of your discharged debt

06/22/11

Creditors who were discharged in bankruptcy are not supposed to send you 1099 forms because a bankruptcy discharge is not a taxable event.  Some do it in and out of bankruptcy in order to get you to pay a debt.  I think it is a violation of the automatic stay if done during the bankruptcy [...]

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Assessing Your Financial Situation Pre-Bankruptcy

06/22/11

Often, people wait too long to file bankruptcy.  Considering bankruptcy to be a last resort is probably a wise thing to do, and there are often many things an individual can do to prevent bankruptcy.  However, waiting too long can mean that bankruptcy protects less of your assets than it might otherwise be able to, [...]

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How Bankruptcy Can Help Avoid Contempt Order Regarding Child Support or Spousal Support

06/22/11

By: Aaron Huff Many are reeling from the recent United States Supreme Court ruling in Turner v. Rogers which asserts that there is no right to counsel for civil defendants facing jail time in a contempt matter.  Under the Supreme Court’s ruling, the 14th Amendment’s due process clause allows a state to provide fewer procedural [...]

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Most Chapter 13 Cases Do Not End in a Discharge

06/18/11

Chapter 13 Discharge Rare? Chapter 13 bankruptcy involves crafting a repayment plan to your creditors over a 3-5 year period. If like many chapter 13 debtors, your income is too high to qualify for chapter 7 bankruptcy, your repayment plan will take place over a 5 year period. At the end of the repayment plan, [...]

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Medical Expenses and Bankruptcy

06/17/11

It is no secret than many Americans are one tragedy away from financial hardship in the form of accidents, the loss of a job, a divorce, or an unexpected illness.  More than half of all bankruptcies are reportedly the result of overwhelming medical expenses. Even (relatively) small medical bills can become overwhelming quickly because the [...]

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Private School Tuition in Chapter 13 Bankruptcy

06/16/11

Everyone filing for Chapter 13 bankruptcy knows they will make a plan that must be approved by the bankruptcy court in order for them to proceed.  But what may be included in that plan?  The Bankruptcy Code uses vague terminology such as “fair” and “reasonable” to define what costs a debtor can claim are necessary [...]

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Can You Modify a First Mortgage in Bankruptcy?

04/25/11

Can You Modify a First Mortgage in Bankruptcy? Nope. While there have been rumblings about new legislation that would allow first mortgages to be modified in bankruptcy, the current state of the law does not allow first mortgages to be modified on a debtor’s primary residence. How About a Second Mortgage? Now, before you get [...]

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