Category Archives: Chapter 13

Car Loan Modifications in Chapter 13 Bankruptcy

Do you have a bad car loan? If your car is worth less than what you owe, it might be possible to use Chapter 13 bankruptcy to lower your balance or interest rate. If other words, you can sometimes “cram down” the principle balance of the loan. Car Loan Cramdown Basics It is commonly believed…

The Hazards of Debt Consolidation With LoanMe

In recent weeks, a lender based in California called LoanMe started flooding local radio stations with advertisements for debt consolidation loans. LoanMe offers unsecured personal loans up to $100,000 and unsecured business loan up to $250,000. Their commercials usually portray a house wife or business owner stressing over credit card debt, offering the appealing simplicity…

Fix the Hole First, Then Bail the Water

You’ve read in the past about signs that might warrant delaying a bankruptcy.  In this article, I want to focus more on unresolved addiction or behavioral issues. Sometimes you need to fix the hole in your boat before you can get rid of the water that’s in it. When I review a client’s matter for…

5 Signs That You Should Wait to File Bankruptcy

A few years ago, I wrote an article called 5 Signs That It May Be Time to File Bankruptcy.  It proved to be very popular and a number of my colleagues requested permission to use in on their websites.  There are also instances when the timing of a bankruptcy filing is nearly as important as the…

Bank of America Is Not Your Friend

Although this blog article could be about any lender that has offered a loan modification to a borrower, I’m going to pick on Bank of America because of what recently happened to a potential client.  The subheading for this article could also be “do not ignore important legal notices”.  Bank of America “wants to be…

Getting Back Garnished Wages

Sometimes a client waits to see me until after a creditor has obtained a judgment and is having money taken out of the client’s paycheck.  Although I always want to file a bankruptcy before a client receives notice of a wage garnishment, it may be possible to get some of the money back after the…

I Spent Too Much on Christmas Gifts…Now What?

I have previously posted tips on how to avoid a Christmas debt hangover.  Maybe you didn’t get the memo, but that’s okay.  Pull up a chair and we’ll roll up our sleeves to see what we can do. The first thing to do is not to panic.  December is traditionally a slow time for bankruptcy…

Debt Consolidation vs. Bankruptcy

Dave Ramsey is right when he says that debt consolidation is “nothing for than a con” that addresses the symptoms and not the disease.  However, he misses that mark when he says that bankruptcy is an evil to be avoided. When Congress amended the Bankruptcy Code in 2005, it added a provision requiring debtors to…

Getting Rid of Tax Debts Through Bankruptcy

“You can’t get rid of taxes in bankruptcy.” True or false? A lot of people, even many bankruptcy attorneys, believe that taxes cannot be discharged in bankruptcy.  There are many tax debts that do survive bankruptcy such as “trust fund” taxes (i.e. taxes withheld from an employee’s paycheck).  However, some income taxes can be discharged…

Understanding Bankruptcy Basics

What Kinds of Bankruptcy Are There? There are two main types of consumer bankruptcy: Chapter 7 and Chapter 13. Chapter 11 is mainly for large companies like Chrysler and General Motors and for individuals who have too much debt to qualify for Chapter 13.  Chapter 12 applies to family farmers. Chapter 7 is what comes…