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A chapter 13 bankruptcy is often viewed as a repayment or reorganization plan, while a Chapter 7 bankruptcy is called a liquidation. In a Chapter 13, priority debts (back taxes, child/spousal support) are usually paid in full, followed by short-term secured debt (cars, arrearages on mortgages, property taxes, etc.) being paid, and then, if the Debtor’s [...]
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What is an Automatic Stay?
Creditors have many weapons in their arsenal to try to collect on a debt:
Repeated telephone calls to your house;
Repeated telephone calls to you at work;
Letters, Letters, Letters;
Letters from an attorney;
Lawsuits;
Garnishments.
And this in when the creditor is being nice.
When someone files for bankruptcy they get what is called an automatic stay.
The automatic [...]
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When you file a Chapter 13 to restructure your debts, you usually keep making your regular mortgage payments.
In some districts, you make those payments to the Chapter 13 trustee, essentially consolidating all you debt payment. In those districts the trustee is referred to a conduit for mortgage payments. In others, you make your mortgage payments [...]
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If you decide to file bankruptcy, you must first calculate your “current monthly income.” Current monthly income (“CMI”) is a highly artificial number that can have big implications on whether you are allowed a Chapter 7 discharge or how much you must pay to your creditors in Chapter 13. Calculating CMI also requires your attorney to [...]
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States, cities, towns and villages all over the country are in financial distress. Some, like the village of Johnson City in Broome County, New York are considering merging into the surrounding town of Union. Others are not paying their payrolls on time, or drastically cutting back on essential services. At least one town in Indiana is [...]
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My friend Jay Fleischman is on point that our clients filing bankruptcy are stressed. Let me posit that the cause of the stress is not “filing bankruptcy” but 1) the situation that lead to the decision to file; 2) fear of the unknown, fueled by bad information and unsupported assumptions about the process; and 3) [...]
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In a recent article I reported on two proposals before the Louisiana Legislature to increase the homestead exemption: one bill would have increased the exemption to $100,000.00 while the second bill would have made the homestead exemption unlimited.
The bad news is that neither of these bills passed in its original form.
However, the Louisiana Legislature did [...]
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If you have ever been in trouble with your bank, you have most likely been reported to Chex Systems. Perhaps you’ve had some NSF checks, or maybe you closed an account without settling a negative balance with the bank. No matter the reason, once you are reported to Chex Systems, managing your finances can be [...]