By Jeff Field | Published August 29, 2023 | Posted in Bankruptcy | Tagged Tags: business debt, means test, promissory notes | Leave a comment
Chapter 7 is often the preferred form of bankruptcy relief for individuals, but not everyone qualifies. Most debtors must satisfy the “means test,” which is used to demonstrate that they have insufficient income to repay any portion of their debt. However, debtors who hold a large amount of business debt are exempt from the Chapter Read More
Read MoreA Chapter 13 bankruptcy allows individuals to restructure their consumer debts and to repay them over an extended period of time. Many debtors choose this form of bankruptcy in order to save a home from foreclosure or a vehicle from repossession. However, not every type of loan can be restructured under Chapter 13. People in Read More
Read MoreIf you fall behind in paying debts, you may be subject to a wage garnishment. A creditor might obtain a court order requiring your employer to impound a portion of your wages or salary each pay period and to send it to the creditor. Garnishments can be devastating as they can leave you with insufficient Read More
Read MoreChapter 7 is the simplest type of consumer bankruptcy, since it usually results in a discharge of most or all debt. It’s also the quickest. Cases are typically completed in four to six months, compared with a Chapter 13 loan, which takes years. That said, there are scenarios and circumstances that might result in your Read More
Read MoreMany people in financial distress are behind on their home mortgages. Debtors who have missed payments are at risk of losing their homes to foreclosure. One of the most effective strategies for saving a home from foreclosure is a Chapter 13 bankruptcy. This type of bankruptcy is also called a wage earner’s plan, because it Read More
Read MoreBankruptcy law generally allows debtors to discharge obligations that accrued prior to the filing of the bankruptcy petition. There are, however, exceptions, such as when a debt is obtained by fraud. Though this is generally understood to mean fraud by the debtor, the United States Supreme Court recently ruled that actions by other people can Read More
Read MorePeople who have difficulty borrowing money often get a friend or relative to be a co-signer on a loan. The co-signer is in effect a guarantor who is secondarily liable for the debt until it is paid in full. However, the situation changes if the co-signer files for bankruptcy. When a co-signer declares bankruptcy, it Read More
Read MoreBankruptcy cases can be dismissed by courts for a variety of reasons. The reasons for the dismissal have a direct bearing on the debtor’s prospects for filing a new petition. A dismissal without prejudice allows the debtor to file a new case right away. A dismissal with prejudice generally requires the debtor to wait a Read More
Read MoreIn a Chapter 13 bankruptcy, the debtor must partially repay certain unsecured debts over time according to a detailed court-approved plan. Although most debtors successfully fulfill their plan payments and receive a discharge of remaining debt, there are things that can cause a Chapter 13 to go askew. Creating a plan requires making projections of Read More
Read MoreAlthough people may fear that they’ll lose much of their property if they file for bankruptcy, the reality is that debtors who opt for this remedy usually keep most of their assets. That’s because federal and state laws allow debtors to claim exemptions — namely, categories of property that are shielded from creditors. However, the Read More
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