The new pandemic relief law includes some helpful changes to bankruptcy law, including some protection of the $600 economic impact payments.
Protecting current home equity is a sensible focus when considering bankruptcy. Protecting potential equity can be critical.
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.
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 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.
Falling behind on home property taxes creates a special problem. The tax collector will likely be much less pushy than your mortgage lender.
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.
Chapter 7 "asset" cases may sound scary. They needn't be. We walk you through a very straightforward example to demystify this.
Most Chapter 7 cases are "no-asset" ones. So, what's an "asset case," and is it good or bad for you?
Just because you own something that isn't exempt does not necessarily mean that your Chapter 7 trustee will liquidate it. Maybe not.
Most individual consumer Chapter 7 cases are "no asset" ones. This means that the Chapter 7 trustee doesn't liquidate any debtor assets.
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.
The 180-day rule applicable to life insurance proceeds also applies to death benefits overall. Death benefits may also often be exempt.
The 180-day rule applies to life insurance proceeds in a Chapter 7 case. But life insurance proceeds are often exempt, or protected.
If you have a power of attorney over someone's assets, or any similar power, those assets are not affected by your bankruptcy case.