Tag Archives: chapter 13

Could the Coronavirus Pandemic Lead to More Bankruptcies?

Life is changing for billions of people across the globe as coronavirus (SARS-CoV-2) continues to spread. Here in the United States, there is uncertainty over how a possible shutdown could affect businesses and consumers. In Italy, where authorities are testing thousands of cases each day, most businesses are shut down. An “Italy-style shutdown” is underway in parts of the United States. California recently ordered its residents to stay indoors, with some exceptions. Depending on how the crisis unfolds, recent events could spark numerous personal and business bankruptcies. How Could the Coronavirus Pandemic Affect Families and Individuals? Medical debt is a factor in some bankruptcy cases. For people with chronic health conditions, or those who suffer a serious injury, they could face unaffordable medical bills. People in this situation are likely to have problems paying their other debts. The same could be true by the time the dust settles on the…
Read More »

Posted in Bankruptcy | Tagged , , , , , | Comments Off on Could the Coronavirus Pandemic Lead to More Bankruptcies?

Actions to Avoid Prior to Filing Bankruptcy

Whether you plan to file for bankruptcy under Chapter 7 or Chapter 13, there are definite actions you need to avoid in order to be sure your debts are discharged or that the court will approve your reorganization plan. These are suggestions and not intended to be a complete list. Your bankruptcy attorney will provide you more detailed information. Avoid transfers of assets that may appear to be preferential. If you repay loans to family members within one year prior to filing your bankruptcy petition, or completely pay some creditors in the 90 days preceding your filing, the trustee has the option of filing an adversary proceeding and asking for the funds to be returned to your estate. The funds will then be used by the trustee and distributed among all your creditors. Quit using your credit cards 70 to 90 days before filing. If you max out your charge…
Read More »

Posted in Bankruptcy | Tagged , | Leave a comment

Chapter 13 Bankruptcy: What is a Reorganization Plan?

Chapter 13 bankruptcy offers debt relief to those who are deeply in debt and behind in their payments on their mortgage but want to keep their home. Chapter 13 is called a reorganization. Additionally, some individuals or families do not qualify for a Chapter 7 bankruptcy, so must look at Chapter 13 as an additional bankruptcy option for them. If you are in this situation, you can file a Chapter 13 petition with the bankruptcy court and stop all collection action. This gives you the time you need to get your financial situation in order with Chapter 13 plans lasting up to 5 years. There are several requirements you must meet. First, you must receive credit counseling from an organization approved by the court before you file your petition. Your tax returns for the previous four years must have been filed. Most importantly, you must show the court you have…
Read More »

Posted in Bankruptcy | Tagged , | Leave a comment