Think about filing bankruptcy in early 2016 if you had some extra source of money in mid-2015.
Some people can take advantage of the peculiar way that bankruptcy law calculates “income” for purposes of the “means test” by filing their Chapter 7 case with the right timing. Doing so could qualify them for Chapter 7 when otherwise you may not.
Others can take similar advantage of the way “income” is calculated for purposes of determining their Chapter 13 “commitment period”—the minimum length of time they have to pay into their court-approved payment plan. With the right timing their commitment…
Bankruptcy can bring you financial peace. While doing so you will be treated with respect and good will. We wish you a Merry Christmas.A Tough Time of Year
This season of gift-giving is hard when money is tight. It’s very hard when you can’t give to your kids and other loved ones what you would like to give.
This season of hospitality is hard when you want to be generous in sharing your home and food but don’t have the means to do so.
The goal of bankruptcy is to give you relief from your debts and…
Filing in December (or any other month with increased income) could result in a much shorter Chapter 13 “adjustment of debts” case.
Two weeks ago we showed how filing bankruptcy by December 31 could enable certain people to file a Chapter 7 case instead of being forced into a Chapter 13 one. They could have their debts discharged (legally written off) within 3 or 4 months under Chapter 7. Otherwise under Chapter 13 they would be required to go through a 3-to-5-year payment plan. And they would only get a discharge of their remaining debts if they’d successfully make it…
If you cause an accident and hurt someone while driving under the influence, bankruptcy does not write off debts from that bodily injury.
There are 3 different kinds of liabilities that can come from driving while intoxicated and getting into an accident: 1) personal injuries to others, 2) property damage, and 3) criminal traffic citation. Today we focus on the first of these.
Personal Injury or Death from Driving while Intoxicated
If you are in a traffic accident and you are injured and there’s not enough insurance to pay for your medical bills, usually you can file a bankruptcy…
Gift-giving during the holidays could raise issues ahead of bankruptcy, but only if the gift in question is a large one.“Fraudulent Transfers” Usually Not an Issue
This blog post is about a topic to be aware of but one that’s seldom an issue for consumers or small business owners filing bankruptcy. However, in part because “fraudulent transfers” often involve some version of gift-giving, it’s particularly worth getting an understanding of this during the holiday season.
We’ll briefly explain here what a “fraudulent transfer” is, its two different forms, why neither are a problem for most people, and when you…
You may be extra motivated and better able to repay a personally important debt this time of year. But since that could be a “preference” maybe you shouldn’t.Careful about Paying a Favored Creditor
Around the holidays you may be extra motivated to pay back a personal loan. The relative or friend may be in real need of the money and pressuring you to pay it. Or if you are considering bankruptcy you may not want it to involve this person, or to have him or her know about it.
You might feel be better able to pay this debt.…
If you can avoid it, don’t take any cash advances during the holidays when contemplating filing bankruptcy.
In our last blog post we explained the “luxury” presumption of fraud. This provision in bankruptcy law increases the risk that you would not be able to “discharge” (legally write off) a very particular kind of debt. That kind of debt would be one that resulted from a purchase or a set of purchases totaling more than $650 made during the 90 days before filing bankruptcy.
The “cash advances” presumption of fraud is closely related to the “luxury” one. (See Section 523(a)(2)(C)(i)(II) of…
If you’re thinking about bankruptcy, you must avoid using credit cards to pay for the holidays. If you use them, you may run into the luxury presumption.Using Credit Shortly Before Filing Bankruptcy
Using credit during the holidays if you’re contemplating bankruptcy is dangerous. It is fraud if you run up debt that you don’t intend to honor.
What is “Fraud” in Bankruptcy?
The bankruptcy system rewards honesty. One of the core principles in bankruptcy is that debts which are entered into honestly can later be written off, while debts entered into through cheating cannot.
When you incur a…
We show step-by-step how filing bankruptcy before the end of December can help you pass the “means test” and qualify for Chapter 7.
Have you received or are you expecting any extra money from any source during December? It’s probably the month when that’s most likely. If you are fortunate you may receive a bonus from your employer, or you’re working a part-time Holiday job or getting bigger paychecks because of overtime. Or you may get a cash gift from a parent or some other relative, either for yourself or to help buy gifts for your kids.
In our last…