Disadvantages of a Badly-Timed 5-Year Chapter 13 Case
Following up on last week's scenario, here are the financial, credit record, and other disadvantages of a forced 5-year Chapter 13 plan.
Filing Chapter 13 in January May Greatly Shorten Your Case
Do you need a Chapter 13 case? WHEN you file it can mean the difference between a payment plan that takes 3 years and one that takes 5.
Scenario: Filing Chapter 13 Now Shortens a Case by Two Years
Here's a scenario showing how the timing of your Chapter 13 filing can shorten your payment plan from 5 years to only 3.
An Example of a “Preference”
A "preference" makes more sense when you see an example. Here's one. This also helps explain how to avoid creating one.
If you pay on or pay off certain debts it may create a preferential payment
Do you feel like you should pay on or pay off a certain debt now, even though you're behind on all your debts? It may be dangerous to do so.
Fraudulent Transfers Around the Holidays
Giving a gift, including selling for much less than an asset is worth, may be a fraudulent transfer--treated as hiding assets from creditors.
An Example Why Passing the Means Test May Be Easier in 2018
Filing bankruptcy before the end of December may help you qualify for Chapter 7 bankruptcy. Here's an example showing how this could work.
Pass the Means Test by Filing Bankruptcy in 2018
The timing of your bankruptcy filing can determine whether you qualify for quick Chapter 7 vs. paying into a Chapter 13 plan for 3-5 years.
The Surprising Benefits: Keeping Your Vehicle Lease under Chapter 13
You can keep your leased vehicle under Chapter 7 if you're current. If not, or have other reasons to do a Chapter 13 case, that works too.
Benefits under Chapter 7: Keeping Your Vehicle Lease
If you file a Chapter 7 case and write off your other debts, will you want to keep your vehicle lease? You can if you're current on it now.
The Surprising Benefits: Ending Your Vehicle Lease under Chapter 13
Chapter 7 gets you out of a vehicle lease owing nothing. Chapter 13 is more complicated but can give you pretty much the same good result.
Chapter 7: Rejecting a Vehicle Lease
Rejecting a vehicle lease in a Chapter 7 case simply requires a formal statement that you reject it. The Option of “Rejecting”... Read More
Successfully Completing a Chapter 13 Case
A Chapter 13 case lasts a long time, but can have many advantages. Many of those advantages come only if you successfully finish it.
The Criminal Action Exception to the Automatic Stay
The automatic stay immediately stops most collection actions when you file bankruptcy. But it doesn't stop a "criminal action or proceeding."
Giving a Creditor “Adequate Protection”
To be able to keep your property that's collateral or security on a secured debt, you must give that secured creditor "adequate protection."
