Chapter 13 bankruptcy, and Chapter 11 bankruptcy, are payment plan bankruptcies, unlike Chapter 7 bankruptcy, which is to wipe out debt. Being payment plans, you pay some of your debts in Chapter 13 or Chapter 11, but perhaps a small percentage. How much you pay depends, among other things, how much you make. But,…
image by: Dreamstime Bankruptcy attorneys file bankruptcy, themselves, both Chapter 13 payment plan bankruptcies, or Chapter 7 liquidation bankruptcies, more often than we get million dollar fees. But, what is news? Over a billion (yeah, B as in Billion) in attorney fees, on a bankruptcy case? Yah, you betcha. “These fees are higher than my…
G Is For Guilty image credit: Dreamstime Most of us have been taught to pay our bills. If you borrow money, you should pay it back. We get mad at our “friends” who don’t pay us back. Whether it is money for furniture, a truck, a car, a boat, a house, a vacation, a student…
DETROIT BANKRUPTCY COURT This is it! Home of the Detroit, Michigan bankruptcy court. Nothing marking it other than the address: 211 West Fort. The initial, usually, only, court date is held here on the third floor, for both Chapter 7 and Chapter 13 creditor meetings, or, 341 hearings. Well, for certain counties in the Eastern…
Many clients ask me who will find out if I file bankruptcy? Does my boss have to know? I don’t want my relatives and friends to find out. All court proceedings are matters of public record, unless the Judge orders the records sealed at the request of a party, and it must be for special…
The creditor lobby would have you believe that people who file bankruptcy are the ones committing fraud. They sold the bankruptcy law reforms as a way to stop the rampant fraud going on, people filing bankruptcy to skip out on their debts, debts which they could afford to pay. That was the company line. Debt…
DISCLAIMER: NOTHING IN THIS POST IS MEANT AS TAX ADVICE, CONSULT A PROFESSIONAL I was shocked to hear that some of my clients were about to pay income tax because of 1099-C forms received on rental properties they had abandoned. Being my clients, they had already filed Chapter 7 and received discharges. Which means, no…
(image from hikojune.xanga.com website) The means test was made law in 2005, at the behest of the creditor lobby to stop abusive bankruptcy filings, which were supposedly costing the average American family $400 per year.. An obtuse formula is used to weed out those who supposedly can afford to pay something to their…
I always tell people, if you are an electrician, go ahead and rewire your house, if you are a plumber, put in that new sink, but, if you are not, get someone who does know how to do those things. Same with filing bankruptcy. 1. It is easy to flub a procedural requirement, not file…
You probably don’t have a car-furniture combination like the one in the picture. But, you probably have a car or cars or vehicles of some kind, and, most likely, some furniture. And there are lots of bankruptcy myths circulating about what happens to your stuff if you file Chapter 7 or Chapter 13. Chapter 13…
