Helpful Bankruptcy Law Change
The new pandemic relief law includes some helpful changes to bankruptcy law, including some protection of the $600 economic impact payments.
Protecting Potential Equity in Your Home through Chapter 7
Protecting current home equity is a sensible focus when considering bankruptcy. Protecting potential equity can be critical.
Protecting Your Home Equity through Chapter 7
You can protect the equity in your home if the amount of equity is no more than the homestead exemption applicable to residents of your state.
Chapter 7 vs. 13 When Your Vehicle is Worth Too Much
Usually your car or truck is protected in bankruptcy with a vehicle exemption. Or if the vehicle is worth too much Chapter 13 can protect it.
Chapter 7 or 13? You May Be Surprised
Chapter 7 takes about 4 months, while Chapter 13 takes 3 to 5 years, and likely costs more. But that doesn't begin to answer which is better.
Buy Time to Get Current on Home Property Taxes
Falling behind on home property taxes creates a special problem. The tax collector will likely be much less pushy than your mortgage lender.
Catching up on Property Taxes on Other Than Your Home
If behind on property taxes on property that isn't your home, either Chapter 7 or Chapter 13 may buy you the time to save this property.
Example of a Simple Chapter 7 “Asset Case”
Chapter 7 "asset" cases may sound scary. They needn't be. We walk you through a very straightforward example to demystify this.
A Chapter 7 “Asset Case”
Most Chapter 7 cases are "no-asset" ones. So, what's an "asset case," and is it good or bad for you?
When a Chapter 7 Trustee Doesn’t Liquidate Non-Exempt Property
Just because you own something that isn't exempt does not necessarily mean that your Chapter 7 trustee will liquidate it. Maybe not.
A “No Asset” Chapter 7 Case
Most individual consumer Chapter 7 cases are "no asset" ones. This means that the Chapter 7 trustee doesn't liquidate any debtor assets.
Proceeds, Rents, or Profits as “Property of the Estate”
Assets acquired after filing under Chapter 7, such as wages, can's be reached by the trustee. But watch out for proceeds, rents and profits.
“Property of the Estate” and “Death Benefits”
The 180-day rule applicable to life insurance proceeds also applies to death benefits overall. Death benefits may also often be exempt.
“Property of the Estate” May Include Life Insurance Proceeds
The 180-day rule applies to life insurance proceeds in a Chapter 7 case. But life insurance proceeds are often exempt, or protected.
“Property of the Estate” Excludes Powers You Exercise for Another’s Benefit
If you have a power of attorney over someone's assets, or any similar power, those assets are not affected by your bankruptcy case.
