Bankruptcy exemptions are an important part of the bankruptcy system. In Chapter 7 bankruptcy, exemptions determine what property you get to keep, whether it be your home, car, pension, personal belongings, or other property. If property is exempt, you may keep it during and after bankruptcy. If property is nonexempt, the trustee is entitled to […]
In short, the answer to this common question is Yes, but not always. Many people believe that income taxes are not dischargeable in bankruptcy. In fact, you are able to discharge federal, state, or local income taxes in both a Chapter 7 and a Chapter 13 bankruptcy if your tax debt meets certain rules. These […]
Yes, in certain circumstances, you may eliminate a mortgage lien from your house in a bankruptcy. This process is called “Lien Stripping.” Lien stripping is only available through a Chapter 13 bankruptcy, and is not available in a Chapter 7. You may strip a lien as long as (1) it is not the first position […]
When you file a Chapter 13 bankruptcy, your debt is divided into three categories: Priority, Secured, and Unsecured. Priority debt includes unpaid income taxes and employment taxes as well as past due child support and alimony. Priority debts must be paid in full through your Chapter 13 plan. Secured debt also must be paid through […]
Student loans are becoming a giant burden for individuals in the United States. According to the Student Loan Debt Clock, Americans currently owe over $1.3 Trillion in student loans. So, if you are one of the many who owe student loans and are having trouble repaying them, can bankruptcy help? The short answer is that […]
On September 8, 2015, a federal judge halted garnishments in Gwinnett County, ruling that the state law that governs the process is unconstitutional. According to the Judge in the case, the law is flawed in three respects: (1) it fails to require that debtors be notified of certain exemptions that can be used to protect their […]
NPR had an intelligent story this morning about bankruptcy, making the point that bankruptcy may be the secret weapon to the US economy. Bankruptcy is designed to give people and businesses a fresh start, to allow them to shed the burden of a bad financial situation so that they can begin contributing positively to the economy […]
The means test is the test that determines who is eligible for a Chapter 7 bankruptcy. Most people facing bankruptcy would rather file a Chapter 7 because it completely eliminates most debts and you are not required to make monthly payments. If you do not pass the means test, you will have to file a […]