The means test was enacted in 2005 as a way to more systematically determine who may receive a chapter 7 bankruptcy discharge. Despite all the subsequent litigation, issues, and technicalities associated with the means test, the means test is an income qualification. If you make too much money, the bankruptcy code wants you to pay [...]
Continue Reading →Underwater mortgages (house is worth less than the amount owed) are hovering around 25% of all homeowners; yet individuals, and debtor advocates, are perplexed by the rules surrounding inferior mortgages on primary residence in chapter 13 bankruptcy. Chapter 13 bankruptcy allows a debtor to remove the 2nd mortgage (or 3rd, or 4th mortgage) so long as the [...]
Continue Reading →Once financial distress hits, at some point, an individual must prioritize expenses, and the choices often are, pay rent, buy food, or pay creditors. Well, credit cards are the lowest priority expense and therefore you should stop paying on the cards if can no longer afford to do so. If bankruptcy is in your future, [...]
Continue Reading →Question:
My wife and I have filed chapter 7 bankruptcy proceedings. How will this action affect our assets such as automobiles, housing, etc. What assets are exempt, or put another way, what, other than debt, can we expect loose.
Answer:
Not to be flippant, but don’t you think you should have figured that out, i.e. [...]
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I bought a franchise in 2009. I’ve been getting by, but only by borrowing money to keep the business afloat. I believe I’ve gotten myself in over my head. I’ve used personal credit cards for business expenses and I don’t want to borrow any additional funds. I’d like to get out [...]
Continue Reading →Home Owners Association dues can be a real pain in bankruptcy. Reason being, HOA dues are an ongoing, recurring expense. As such, HOA dues that come due after the homeowner files bankruptcy are still the responsibility of the homeowner. Allow me to explain.
A common scenario: Don Debtor is unable to afford his home [...]
Continue Reading →As the admonition states at the ancient Oracle of Delphi, “know thy self,” the same idea rings true as you enter the halls of the Bankruptcy system, “know thy budget.”
The most important aspect of an individuals’ bankruptcy is their budget. Your budget determines if you qualify for Chapter 7 Bankruptcy; your budget determines how [...]
Continue Reading →A chapter 13 bankruptcy is a payment plan to get back in control of your debt. A chapter 13 is not necessarily designed to pay back your debt in full, you only pay back what you can really afford; also, you can save a home from foreclosure and deal with other debts such as tax [...]
Continue Reading →When filing for bankruptcy, there are certain assets you may retain in bankruptcy and certain assets you will either have to manage prior to or within bankruptcy; surrender; or pay the trustee to keep in bankruptcy. Assets you are able to keep are dictated by your State Exemptions Laws (See Colorado Revised Statutes if you [...]
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Debt is Slavery!
Debt is a voluntary form of slavery. Okay, I know, that sounds like a bold, rather kook’ish statement, but bare with me. Aside from committing a criminal act, being in debt gives others the most power over you, the most power to limit your time and money. In that sense, debt seriously limits your freedom. [...]
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