Archive for January, 2015

Utah New Year Resolution #14: Pay Your Debts As Much As You Can Based on Your Budget, and Then Write Off the Rest

Chapter 13 is a very flexible and powerful way to pay your creditors a reasonable amount over a reasonable time, and then be done.   The title of this blog post, and the above sentence, summarize well how this “adjustment of debts” version of bankruptcy works. There are, however, both limitations in what Chapter 13 can do, and also some incredibly powerful ways that it can improve your financial life. How Chapter 13 Works In a Chapter 13 case, you and your attorney put together a creditor payment plan based mostly on your income and expenses. So in many respects…

Utah New Year Resolution #13: Consider Bankruptcy If You’ve Helped Cause a Vehicle Accident

If you contributed to the cause of an auto accident, you are now probably facing financial problems from various directions. Here’s how bankruptcy can help.         The Ways You May Be Hurting Financially If you caused an accident, or helped cause it, your financial problems can include:
  • If you were driving while uninsured, you could owe huge amounts of money for the bodily injuries to the other driver(s), passengers in the other vehicles and in your own, and to any injured pedestrians. You could also owe for property damage to the other vehicle, the vehicle you were driving if it wasn’t

Utah New Year Resolution #12: Bankruptcy for Vehicle Accident Victims

If medical bills aren’t being paid, bankruptcy can give you immediate and permanent relief.   The Accident Financial Dilemma If you’ve been seriously injured in a vehicle accident, there are many scenarios in which you could be hurting financially, even if the accident was not your fault and you had insurance. The other driver may have been uninsured. So if you had only the legally required liability insurance, there would be no auto insurance to pay for your injuries. Then if you had no medical insurance, you would have to pay for all of your medical expenses—which could easily total many…

Utah’s New Year Resolution #11: Determine Whether Bankruptcy Can Help with Your Student Loans

It is hard to get rid of student loans through bankruptcy. But sometimes you can and it’s worth knowing whether and how it can help.   What it Takes to “Discharge” a Student Loan You may have heard that student loans can’t ever be written off in bankruptcy—that is, “discharged.” That’s not true. Certain types of debts can’t ever be discharged, like unpaid child support. Student loans are more like income taxes, which can be discharged under certain conditions. But income taxes are generally easier to discharge than student loans—you just have to wait a certain amounts of time after the…

Utah’s New Year Resolution #10: Resolve a Business or Personal Lawsuit through Bankruptcy

If you or your business is stuck in litigation that is sucking you dry financially and emotionally, bankruptcy may be your best way out.   Getting Stuck in Litigation You may not have been a candidate for filing bankruptcy when, many months or even a year or two ago you or your business got sued. Or maybe you did the suing yourself to try to correct a wrong that was done to you, and bankruptcy might have been the furthest thing from your mind at the time. But whether you are the plaintiff or the defendant in this lawsuit, things aren’t…

Utah New Year Resolution #9: Save Your Promising Business

Could you make a go of it in your small business if you could just get some relief from your creditors? Especially the tax collectors? Consider Chapter 13.   Make the Tough Decision Whether Your Self-Employment or Small Business Can Thrive If you are operating a small business by yourself, or with a partner and/or spouse, deciding whether to put more time and effort into it or instead to close it down can be an incredibly difficult decision. If you have already decided to close it down, see our very last blog post about how either Chapter 7 “straight bankruptcy” or…

Utah’s New Year Resolution #8: Close Down Your Business But Protect Yourself from Your Creditors

It’s hard to close down a business you’ve invested so much in. But bankruptcy can help, by writing off the debts of the business, or giving you a safe way to pay some of them.   It’s Time to Throw in the Towel It’s hard to let go of something you’ve invested so much time and energy and money in. But you’re trying to face the reality that your business is not providing enough money for you to live on. And it’s just not heading in the right direction. In your head you know that continuing to try to push the…

Utah’s New Year Resolution #7: Overcome the Financial Problems Caused by Your Divorce

Chapter 13 can solve past-due support problems. But it’s even better at  in dealing with non-support divorce debts.   The Sacredness of Child and Spousal Support A few days ago we talked about ways that bankruptcy can help specifically with child and spousal support, especially situations in which a person has fallen behind on support. (See New Year Resolution #5.) The Chapter 13 type of consumer bankruptcy is a particularly strong tool for this often otherwise very tough debt to be chased on. Chapter 13 stops the aggressive collection of past-due support in order to give time—as much as several…

Utah’s New Year Resolution #6: Stop or Prevent Creditor Lawsuits and Judgments

If you’ve been sued by one or more creditors and they have a judgment, you can stop them from garnishing your paycheck.   Lawsuits When you get sued by a creditor, you have a certain amount of time to respond to the lawsuit after you receive the “summons and complaint.” By responding we mean formally filing a document in the court where the lawsuit was filed, usually called an “answer,” stating which allegations in the complaint you agree with and which you deny and disagree with. If you respond on time, the case goes through a process of “discovery”: the facts…

Utah’s New Year Resolution #5: Solve Your Child or Spousal Support Arrearage Problem, Permanently

Support enforcement collection methods used against you can be very powerful. Fight back with something even stronger–Chapter 7 or 13.   An Especially Vicious Cycle Falling behind on child and/or support payments creates an especially vicious cycle of debt. That’s because the law gives your ex-spouse and the support enforcers extremely powerful weapons against you. Once you fall behind, extraordinary collection pressures can be put on you, means of intimidation that are way beyond what other creditors, and even tax collectors, can do. Support enforcement laws differ somewhat state to state. But in all or most states, besides your wages…