When you file a Chapter 7 “straight bankruptcy” case, usually you can keep everything you own. These 10 points show how this works. Property exemptions usually protect all that you own, but they are trickier than may seem: Exemptions are categories of protected assets, usually with a ... Read More »
Your Income Tax Debt Paid through an “Asset Chapter 7 Case”
Have your Chapter 7 trustee pay your income taxes out of the proceeds of sale of assets that you don’t need. Here’s an unusual way of paying your income tax debt. The circumstances don’t line up very often, but when they do this procedure can work very nicely. Turning Lemons ... Read More »
Peace on Earth, Good Will to All: Merry Christmas!
Bankruptcy can bring you financial peace. And in that process you will likely be treated with respect and good will. A Tough Time of Year This season of gift-giving is hard when money is tight. It’s very hard when you can’t give to your kids and other loved ones what you would ... Read More »
Bankruptcy Timing and the Holidays: Gift-Giving and “Fraudulent Transfers”
Gift-giving, or selling for much less than actual value, can cause problems ahead of bankruptcy, but only if it’s a large gift. “Fraudulent Transfers” Usually Not an Issue This blog post is about a topic to be aware of but one that’s seldom an issue for consumers or ... Read More »
Chapter 7 and Chapter 13–Exempt and Not Exempt Assets
Most of the time everything you own is exempt, meaning it’s protected in a Chapter 7 bankruptcy. If not, Chapter 13 can usually protect it. Our last blog post was about keeping or surrendering assets which are security on a secured debt—such as a vehicle on a vehicle loan, a home with a home ... Read More »
Making Sense of Bankruptcy: “Converting” from a Chapter 7 Case to a Chapter 13 One
The ability to convert to a Chapter 13 case can be extremely important if something unexpected happens soon after filing a Chapter 7 case. Here’s the sentence that we’re explaining today: If you file a Chapter 7 ‘straight bankruptcy” case you can “convert” it ... Read More »
Making Sense of Bankruptcy: Avoid Dangerous “Preference” Payments
Be careful about trying to be nice and paying back relatives and friends in order to keep them out of your bankruptcy case. Here’s the sentence that we’re exploring today: You may be tempted to pay certain special creditors before filing bankruptcy—such as relatives or ... Read More »
Making Sense of Bankruptcy: Should You File a Chapter 7 or Chapter 13 Bankruptcy if You Want to Continue Operating Your Business?
If you have a business that you need to continue of operate, choosing the right form of bankruptcy involves risks and opportunities. Here’s the sentence that we’re explaining today: Chapter 7 and 13 are very different procedures if you are continuing to run your business, with ... Read More »
Making Sense of Bankruptcy: Should You File a Bankruptcy for Your Closed Business and a Separate One for You Personally?
With a recently closed or about to close failing business, you often can’t and seldom need to file a bankruptcy for the business itself. Here’s the sentence that we’re explaining today: If your business is or was a sole proprietorship, it can’t file a bankruptcy ... Read More »
Making Sense of Bankruptcy: What Happens if My Chapter 7 Trustee Wants to Take Something from Me?
You may or may not care if the trustee takes an asset from you, you can fight and/or negotiate, or you can benefit from letting it happen. Here’s the sentence that we’re explaining today: Usually in a Chapter 7 case the bankruptcy trustee does NOT take anything from you because ... Read More »
