Chapter 13 Bankruptcy Information

Every chapter 7 or chapter 13 bankruptcy filing involves a creditors meeting which occurs about one month after the case is filed.  This meeting can unexpectedly become the perfect storm where, if enough of the wrong factors jell together, the debtor may blurt out the “forbidden reason” for spending down his or her bank accounts before the bankruptcy was filed.

This is where the debtor testifies, with the tape recorder capturing every word, sneeze or other sound, that he or she spent the money so the trustee wouldn’t be able to take it.  Then, the room will turn silent while the bankruptcy trustee slowly opens the U.S. Code laying on the table.  The trustee will turn the page to section 727(a)(2) of the bankruptcy code, which reads:

So, when do you decide that your debt problems are so bad that you need to file for bankruptcy? Do you only have a few inches of debt in your financial basement, or are you drowning in debt? Do you need to declare a state of financial emergency?

Here are a few considerations.  You know it is time to call a bankruptcy lawyer when you experience the following:

So, when do you decide that your debt problems are so bad that you need to file for bankruptcy? Do you only have a few inches of debt in your financial basement, or are you drowning in debt? Do you need to declare a state of financial emergency?

Here are a few considerations.  You know it is time to call a bankruptcy lawyer when you experience the following:

Bankruptcy debtors who receive substantial mileage reimbursement checks from their employers often puzzle over how to account for this “income” on their bankruptcy statements or in the means test.

Because these schedules form the basis for qualifying for chapter 7, or for calculating the proper amount of a chapter 13 payment, large mileage reimbursement checks can unfairly skew the debtor’s income upwards if sufficient thought is not devoted to how to lists such checks.  The bankruptcy debtor’s attorney might even wonder if such checks should be listed at all.

Bankruptcy debtors who receive substantial mileage reimbursement checks from their employers often puzzle over how to account for this “income” on their bankruptcy statements or in the means test.

Because these schedules form the basis for qualifying for chapter 7, or for calculating the proper amount of a chapter 13 payment, large mileage reimbursement checks can unfairly skew the debtor’s income upwards if sufficient thought is not devoted to how to lists such checks.  The bankruptcy debtor’s attorney might even wonder if such checks should be listed at all.

“Bankruptcy: What is Chapter 13 Bankruptcy?” provides a general overview of a Chapter 13 bankruptcy.

But exactly how does Chapter 13 bankruptcy work?  Will I be able to keep my house?  My car?

These are questions that I hear often from clients who are considering their bankruptcy options.

This article discusses the purpose for which Chapter 13 bankruptcy was originally intended before the credit card lobby got their hands on Congress and the Bankruptcy Code.

“Bankruptcy: What is Chapter 13 Bankruptcy?” provides a general overview of a Chapter 13 bankruptcy.

But exactly how does Chapter 13 bankruptcy work?  Will I be able to keep my house?  My car?

These are questions that I hear often from clients who are considering their bankruptcy options.

This article discusses the purpose for which Chapter 13 bankruptcy was originally intended before the credit card lobby got their hands on Congress and the Bankruptcy Code.

Bankruptcy lawyers always tell people to use cash whenever possible.  We tell you that to help you save money — and to make it harder to overspend.  Cash feels precious to us while credit cards or even debit cards do not.

It turns out that cash also makes you feel good.  Yes, I know, this is not news.

It really is though.  Kathleen Vohs of the University of Minnesota has discovered that physically handling — counting money — can make you feel less pain.  The study is described here.  The study compared how much pain test subjects felt when touching hot water after, for example, counting cash versus counting blank slips of paper.  The results indicated that your brain feels less pain after handling money.