Category Archives:Chapter 13

What Is a Bankruptcy Means Test?

Do you want to completely wipe out your debt? When many people think of bankruptcy, they believe it as a way of completely erasing their debt. However, for the most part, bankruptcy provides two pathways. There is the liquidation of debt under Chapter 7, but there is also a court-supervised debt repayment plan with Chapter 13. At one time, a person could simply choose which path they wanted to take. Since 2005, bankruptcy law demands that many who can repay their debt file a Chapter 13, instead of a Chapter 7. This change spawned the creation of the means test.

Do Debt Reduction Services Really Work?

Prior to filing bankruptcy, some people will try a debt reduction service or debt settlement service. The hope is that, with professional assistance, they can renegotiate their payment terms. The claim of these debt relief companies is that they have the ability to work with your creditors to lower payments, eliminate interest, and possibly even lessen the total amount owed. However, do debt reduction services really work?

Can Filing for Bankruptcy Stop a Lawsuit?

Are your creditors suing you? If you are facing a civil lawsuit, you may want to consider filing for bankruptcy. In many instances, this will be your best option. A lawsuit can become stressful and costly. However, a bankruptcy will often ensure that a creditor never receives a judgment. This is because of one of the most powerful aspects of a bankruptcy, called the Automatic Stay. With very few exceptions, this injunction will stop the actions of creditors. So, a bankruptcy will stop a lawsuit.

If I File Bankruptcy, Will I Lose My Retirement Savings?

Are you saving for retirement or currently retired? Overwhelming debt can place your retirement savings at risk. Consequently, many older Americans are using bankruptcy as a solution. Yet, people often worry that filing bankruptcy will place their retirement savings at risk. Will a trustee seize your retirement savings to pay your creditors? Today’s article will help answer if a bankruptcy will cause you to lose your retirement savings.