Bankruptcy Blog Archives

Since October 17, 2005 it has become tougher to file a Chapter 7 Case. Whereas before the Reform Act, filing a Chapter 7 case was not as scrutinized as it is today. When preparing to file a Chapter 7, you must first qualify. In order to qualify, your income cannot exceed the IRS guidelines (which [...]

What is a Motion for Relief? Upon filing of a Bankruptcy the Automatic Stay falls into place, in effect staying the creditors’ hands from further collection of the debt listed in the bankruptcy. If a creditor then wants to be allowed to collect this debt they have to file a motion with the court to [...]

Under the new bankruptcy law you have to file a credit counseling course prior to your case being filed. This is a new requirement that we did not have under the old laws. There are many approved credit counseling agencies that offer this. Our firm uses bkcert.com. The second course is the debtor education or [...]

When you file a Chapter 13 case, you are set up on a monthly payment schedule. This monthly payment schedule is referred to as your reorganization payments. For most people these payments are set up to cure the delinquency owed to their mortgage company, car creditor, taxing authority, and at times, back child support, and [...]

Many people that file Chapter 13 bankruptcy are doing so due to loss of income. When they file, they are still looking for a job, so on their schedules we list prospective income as part of their income. However, the Trustee wants something more concrete to show that the Debtors will be able to make [...]

The primary complaint of Chapter 13 debtors under wage order is the fact that wage order directives are not activated quickly enough to keep them current with the Trustee when payment increases. In the case of payment increase due to plan modification, the debtor is responsible to send in any amounts due above the current [...]

There are two different types of exemptions that people use to protect their house, cars, and bank accounts. Anything that is considered to be an asset, your attorney will use Federal or State Exemptions to protect your assets. Federal Exemptions are normally used to protect your assets when filing for a Chapter 13 or a [...]

A chapter 13 is a plan that is most often used when a person’s home is going into a foreclosure or their car is about to be repossessed. The chapter 13 is a plan the can force the car creditor or mortgage company to accept a new plan to help you keep what you are [...]

Many people I meet with are concerned about the new law changes with regards to bankruptcy and specifically if they qualify to file a bankruptcy case. When Congress passed the new Bankruptcy Reform Act that took effect in October 2005, it changed the way many attorneys had to look at filing certain cases for clients. [...]

Today I will be working on returning calls to my Chapter 13 debtors. I have recently had an increase in Chapter 13 dismissals due to failure to make the first plan payment. After discussing the options of reinstatement or refile with debtors it seems that reinstatement may cause issues for confirmation if not reinstated immediately. [...]