A Chapter 13 bankruptcy case can be used to pay child support arrears and tax liability for prior years. However, in order to stay in a bankruptcy case, debtors must continue to pay child support during the pendency of the case and they must file future tax returns and make arrangements to pay future taxes […]
In Chapter 13 bankruptcy debtors propose a plan to reorganize their debt. This plan states that the debtor will make a payment to a trustee for thirty-six to sixty months. The trustee takes this money and makes payments to the creditors as stated in the plan. The debtor must also prove that they can afford […]
Secured and priority creditors are often provided interest on claims paid in Chapter 13 plans. In fact, in Texas some of these interest rates are set by statute. Claims for child support arrears receive 6% interest. Claims for unpaid property taxes are entitled to 12% interest. However, determining whether claims for mortgage arrears receive interest […]
When you are in bankruptcy you are expected to be frugal with your money. This means that if you have unnecessary monthly expenses for luxury items the Chapter 13 trustee and judge may oppose approval of your Chapter 13 plan. Luxury items include but are not limited to, a boat, a motorcycle not used as […]
I have found that bankruptcy cases are more difficult for my clients with high income for two reasons. First, they are used to living a certain way, and sometimes feel entitled to their lifestyle and insulted that I would suggest they slim down their budget. Success in Chapter 13 bankruptcy requires self-discipline and a willingness […]