How Does Chapter 13 Work?

Chapter 13 bankruptcy is a reorganization plan for individuals. It uses your disposable income over a three to five year period to pay some or all of what you owe to creditors. As you will see below, it’s a complex proceeding and is difficult to complete without the assistance of an attorney. Why file aContinue reading “How Does Chapter 13 Work?”

How Do I Pass the Chapter 7 Means Test?

What is the means test? I decided that if I’m going to start helping people prepare and file a bankruptcy, I’d better see if I could figure out how to fill out the required forms and calculate the means test. I’m sure glad I did. It would be really embarrassing if I couldn’t figure itContinue reading “How Do I Pass the Chapter 7 Means Test?”

Are You Eligible to File Bankruptcy?

The easy answer is “anyone,” but of course, it’s a little more complicated. Chapter 7 and Chapter 13 bankruptcies are available to most individuals (and are the most often used by individuals). Since this website talks mostly about individual bankruptcies (sometimes referred to as “consumer bankruptcies”), I’m going to confine this discussion to chapter 7Continue reading “Are You Eligible to File Bankruptcy?”

What is Chapter 7

A chapter 7 bankruptcy is a liquidation proceeding. If you qualify, chapter 7 liquidates your non-exempt assets (most chapter 7 debtors do not have any non-exempt assets) and eliminates all of your dischargeable debts. If you have assets that are not exempt, the bankruptcy trustee is entitled to sell those non-exempt assets and use theContinue reading “What is Chapter 7”

Best Reasons to File Bankruptcy

Bankruptcy gets a bad rap in the press. Always has. Always will. But there are some good reasons to file bankruptcy. Critics would have you believe that people who file bankruptcy intentionally max out their credit cards on luxury items, then file bankruptcy so they don’t have to pay anything back. While that undoubtedly occursContinue reading “Best Reasons to File Bankruptcy”