Chapter 13 Bankruptcy Information

When you file bankruptcy, you might think you’ll have a trial in a courtroom with a judge ruling on whether you can discharge your debts.  Clients in my Charleston, South Carolina bankruptcy practice often have that misconception of the bankruptcy process.  It makes sense to think of a judge in a courtroom because that’s how things are done in most other types of cases such as divorces or other state court cases.  But that’s not how it works in bankruptcy court.

When you file bankruptcy, you might think you’ll have a trial in a courtroom with a judge ruling on whether you can discharge your debts.  Clients in my Charleston, South Carolina bankruptcy practice often have that misconception of the bankruptcy process.  It makes sense to think of a judge in a courtroom because that’s how things are done in most other types of cases such as divorces or other state court cases.  But that’s not how it works in bankruptcy court.

If you work at a large retailer, the store probably offers a “store brand” credit card.  If you’re getting stretched financially, you probably shouldn’t take advantage of this “benefit.”  If you are getting deeper in debt, definitely don’t.

Bankruptcy lawyers frequently see clients who have charged a large balance on the store’s branded card and are now worried they could lose their job if they “file bankruptcy on the boss.”   That’s a big problem.

You have to list all your creditors -  All of them – when you file bankruptcy.

If you work at a large retailer, the store probably offers a “store brand” credit card.  If you’re getting stretched financially, you probably shouldn’t take advantage of this “benefit.”  If you are getting deeper in debt, definitely don’t.

Bankruptcy lawyers frequently see clients who have charged a large balance on the store’s branded card and are now worried they could lose their job if they “file bankruptcy on the boss.”   That’s a big problem.

You have to list all your creditors -  All of them – when you file bankruptcy.

In my previous article, I discussed the purpose for which Chapter 13 bankruptcy was originally intended before the credit card lobby convinced Congress that people who file for bankruptcy are bad people.

The October 2005 enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) saw the introduction of a new requirement to file bankruptcy: The Means Test.

It is not literally a test that a debtor needs to take and pass to file bankruptcy.

In my previous article, I discussed the purpose for which Chapter 13 bankruptcy was originally intended before the credit card lobby convinced Congress that people who file for bankruptcy are bad people.

The October 2005 enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) saw the introduction of a new requirement to file bankruptcy: The Means Test.

It is not literally a test that a debtor needs to take and pass to file bankruptcy.

Now that you have visited with your bankruptcy lawyer and paid him the required fees, probably the last thing that you are thinking is, “how can I torpedo my own bankruptcy case?”

This has been addressed previously but the question keeps coming up.  In figuring out a chapter 13 plan payment, there are several “tests” that must be considered.  One test is the “best interests of the creditors” test as set forth under 11 U.S.C. § 1325(a)(4).  Basically, we analyze your case as a chapter 7 case which means that, if you have “stuff” that is “non-exempt,” you must pay for the “non-exempt” value of that “stuff” if you want to keep it.  Or, as Dewey Newcomb said in “Legally Blonde,” “come again?”

This has been addressed previously but the question keeps coming up.  In figuring out a chapter 13 plan payment, there are several “tests” that must be considered.  One test is the “best interests of the creditors” test as set forth under 11 U.S.C. § 1325(a)(4).  Basically, we analyze your case as a chapter 7 case which means that, if you have “stuff” that is “non-exempt,” you must pay for the “non-exempt” value of that “stuff” if you want to keep it.  Or, as Dewey Newcomb said in “Legally Blonde,” “come again?”

This has been addressed previously but the question keeps coming up.  In figuring out a chapter 13 plan payment, there are several “tests” that must be considered.  One test is the “best interests of the creditors” test as set forth under 11 U.S.C. § 1325(a)(4).  Basically, we analyze your case as a chapter 7 case which means that, if you have “stuff” that is “non-exempt,” you must pay for the “non-exempt” value of that “stuff” if you want to keep it.  Or, as Dewey Newcomb said in “Legally Blonde,” “come again?”