Before bankruptcy, I tell my clients to stop the automatic withdrawals to those internet payday loans.  They always find it’s so hard to get their banks to help.  Today’s  New York Times says the same thing.

Since many bankruptcy filers end up filing soon after getting their tax refund back, they are often curious as to whether any of their creditors can seize the refund before it gets to them.  For many, the only way to afford the fees to file bankruptcy is by using that tax refund money.  Only state and federal agencies can intercept a tax refund.  So normally, only the IRS or possibly ORS will have the right to take that money.  However, if a creditor has a judgment against you, they could seize that money as soon as it enters your bank account since creditors with judgments have the right t

Payment Plans Are Available You most certainly can get on a payment plan to file a bankruptcy.  In fact, most people do not have the ability to pay the lump sum which is the court costs and the attorneys’ fees, all at one sitting.  What I like to do is offer a client a reasonable+ Read MoreThe post Can I make payments to file a bankruptcy? appeared first on

All Creditors Must Be Listed If you are filing bankruptcy, then all of your creditors must be listed.  This includes credit cards, personal loans, auto payments, mortgage payments and any other debt, including debts owed to family members.  I understand that many people have lived off credit cards, they love the convenience of credit cards+ Read MoreThe post

Bankruptcy is a tool for helping people recover from overwhelming debt. It is a complicated tool, though. To help you understand your options better, let’s clear up some of most confusing myths about bankruptcy.

The amount that creditors receive in a Chapter 13 depends upon a number of factors.  The first factor is what type of creditor are they?  Are they a secured creditor, secured by either real estate or a vehicle or some other item?  Or are they an unsecured creditor such as a credit card, a medical bill, a personal loan or a debt for some type of service?  Depending on what type of creditor will dictate to what amount they are paid back.  General unsecured creditors can be paid as little as 10% on the dollar or they can be paid back 100%, depending upon the particular case.  Secured creditors

The trustee has many functions and duties throughout a Chapter 13 bankruptcy case, but none more important than the administration of the Chapter 13.  Now, what I mean by administration is the trustee has the duty to first make sure that the debtor has proposed a plan that is confirmable.  Two, the trustee then has to administer the payments that come through from the debtor and administer those to the various creditors pursuant to the terms of the Chapter 13 plan.  Child support arrearages get paid first.  Administrative fees get paid next.  Attorneys’ fees can often get paid next or pro r

If you file a Chapter 13 prior to your car being sold at auction for sale, then you do have the ability undercurrent Chapter 13 bankruptcy law to recover your vehicle.  Now, the lender has the right to immediately bring a Motion to Modify the Automatic Stay to avoid the bankruptcy if you are not adequately protecting that creditor, if you don’t have valid auto insurance on that vehicle naming the lien holder as a loss payee or if any other requirements of the Bankruptcy Code are not satisfied to the point where the lender can bring a motion to avoid the bankruptcy and either repossess the v

Case Overview This is the case of Gary Kaplan from St. Charles, Illinois.  Mr.