For debtors with regular income, saving a home with Chapter 13 bankruptcy proves effective most of the time. However, there are some problems debtors may face at the end of their Chapter 13 bankruptcy. Below are a few suggestions on how to deal with the issues as they arrive: Mortgage Late Fees Technically, mortgage servicers [...]
Borrowing Money During Chapter 13 Bankruptcy In the three to five year period of a debtor's Chapter 13 bankruptcy case, they may feel the need to borrow money. But a Chapter 13 bankruptcy debtor cannot borrow unless they have the bankruptcy trustee's permission. The first question a debtor needs to ask themselves is if it [...]
Sole Proprietors and Corporations In Bankruptcy There are some important differences in the way bankruptcy courts treat sole proprietors versus corporations. Let's take a look at a few: Individual vs. Corporate Entity The bankruptcy trustee will view a sole proprietor's business assets the same as their personal assets for the purpose of repaying creditors. This [...]
You may think you're ready to file for bankruptcy - but unless you have the aid of a bankruptcy lawyer by your side, you could end up making a crucial mistake that will ruin your finances for years. Pointing out that bankruptcy is complicated is definitely an understatement. Between the paperwork, the complexity of the [...]
Debt Forgiveness and Bankruptcy Debts forgiven in bankruptcy are never taxable. However, some debts forgiven outside of bankruptcy may create a tax liability for the debtor. Let's take a look at few tax issues debtors may face after settling debts outside of bankruptcy: Debt Settlement On Credit Cards As we have mentioned previously, many debtors [...]
Qualifying For Chapter 13 Bankruptcy Qualifying for Chapter 7 bankruptcy occupies most of a debtor's concerns when considering their options; but filing Chapter 13 bankruptcy also has its own set of requirements. Let's take a look at a few: Businesses Need Not Apply Chapter 13 bankruptcy is designed for consumers only. This means that corporations, [...]
Characteristics Your Company Needs To Survive Bankruptcy Bankruptcy is one of the most powerful tools available to businesses facing financially difficult times; but how does an owner know if their company can survive the bankruptcy process? Below are a few characteristics your company needs to survive bankruptcy: Flexibility Your company and core stakeholders are flexible [...]
Choosing the right bankruptcy attorney is one of the most important steps in filing for bankruptcy. Below are a few tips on what every debtor should consider when they hire a bankruptcy attorney: Choose Local Make sure that you chose a bankruptcy attorney who not only lives in your state; but is familiar with your [...]
What is Fraudulent Conveyance in Bankruptcy? Fraudulent conveyance is when a bankruptcy debtor transfers something of value, such as cash, real estate or other assets to someone or something else. If this transfer of wealth is made with the intention of defrauding the creditors, made while the debtor is insolvent or is transferred for considerably [...]
The most successful bankruptcy filings involve careful planning on the part of the debtor and their bankruptcy attorney. However, all pre-bankruptcy planning should be done carefully. Below are a few things debtors should use caution with when planning their bankruptcy: Quitting A Job When a debtor files for bankruptcy, they may need to take the [...]