When a debtor files a bankruptcy case debt collectors are required to stop all attempts to collect debt by federal law. The mechanism that stops debt collection in bankruptcy is called the automatic stay. This bankruptcy tool is especially important if you are behind on your car payments and in danger of having your vehicle […]
Tax refunds are treated differently depending on whether a debtor files bankruptcy under Chapter 7 or Chapter 13 of the Bankruptcy Code. In Chapter 7 bankruptcy tax refunds owed to the debtor are considered an asset of the bankruptcy estate. This means that if a debtor files bankruptcy before they receive their tax refund, once […]
One of the complaints I hear from my Chapter 13 bankruptcy clients is about the tendency of Chapter 13 plan payments to change during their case. Changes in the plan payment amount happen for a lot of different reasons and they are a natural part of the process. When a Chapter 13 case is filed […]
Student loan debt cannot be discharged by most bankruptcy filers. Those people who do discharge student loans must prove that repaying the debt would be an “undue hardship.” Student loans cannot be discharged in the original bankruptcy case. An adversary proceeding must be filed, which is a lawsuit within the bankruptcy court. Adversary proceedings are […]
Chapter 13 bankruptcy is a process that starts with the accumulation of data and finishes with the discharge. This type of legal process can be broken down into well-defined steps. The first step is when the paperwork is being prepared prior to filing the bankruptcy case. For debtors this is when most of their participation […]