Archive | January, 2012

T is for Taxes

January 25, 2012  |   Posted by :   |   General bk   |   7 Comments

They say there are only 2 things guaranteed in life, death and taxes. So it’s no surprise that taxes are often part of a person’s debt problems. Like student loans, even if a bankruptcy can’t discharge taxes, it can still be part of the solution. First off, bankruptcy can’t do anything for taxes that aren’t […]

Read More »

S is for Student Loans

January 23, 2012  |   Posted by :   |   General bk   |   4 Comments

Most everyone knows that student loans are generally not discharged in bankruptcy, but that doesn’t mean that bankruptcy can’t be used to help you with a student loan problem. First, it is possible to discharge student loans, but it is difficult. To see what it takes to discharge a student loan in Hawaii, look at […]

Read More »

R is for Repossession

January 18, 2012  |   Posted by :   |   General bk   |   12 Comments

What happens when you don’t make the payments on your car loan? Car gets repossessed (or repoed). Tow trucks start circling, looking for an opportunity to hook up the car. If your car is repossessed, you still have a short time to pay off the loan or work out a deal with the lender. Once […]

Read More »

Q is for Qualified Retirements

January 17, 2012  |   Posted by :   |   General bk   |   9 Comments

The bankruptcy code has some generous exemptions for retirements. The bankruptcy code grants an almost limitless exemption for retirement accounts like 401k, 403b, IRA and Roth IRAs. It also allows exemptions for other traditional retirements like pensions and retirement annuities. The general rule of thumb is if the retirement has a tax exempt status from […]

Read More »

P is for Preference

January 16, 2012  |   Posted by :   |   General bk   |   9 Comments

A preference in bankruptcy is a situation where a debtor “prefers” one creditor of the same class over another creditor. In more precise terms, it is a payment or transfer by an insolvent debtor, made to a creditor on a preexisting debt which allows the preferred creditor to receive more than they would in a […]

Read More »

O is for Objection to Discharge

January 14, 2012  |   Posted by :   |   General bk   |   3 Comments

Just because you file you bankruptcy doesn’t mean you will get your discharge. For various reasons, the court can sustain an objection to your discharge. Some denials are automatic, such as filing another bankruptcy too soon or not getting your credit counseling before filing. Some denials are based on a debtor’s bad actions, such as […]

Read More »

N is for No Asset Report

January 13, 2012  |   Posted by :   |   Ch7 bk   |   9 Comments

In a Chapter 7 bankruptcy, the bankruptcy trustee is responsible for reviewing your case and seeing if there are any assets that can be used to pay creditors. In most cases, there are no nonexempt assets (See my previous post on Exemptions for more background) or the assets that are not exempt aren’t worth enough […]

Read More »

M is for Mortgage Arrears

January 12, 2012  |   Posted by :   |   Ch13 bk,Ch7 bk   |   10 Comments

You’ve been out of work for a few months and collecting unemployment. Since unemployment only replaces a portion of your income, you fell behind on your mortgage. Now the mortgage company is demanding you come current immediately, or they will foreclose on your house. What do you do? Mortgage arrears is a fancy term for […]

Read More »

L is for Lien Stripping

January 11, 2012  |   Posted by :   |   Ch13 bk,Ch7 bk   |   10 Comments

Lien stripping, in a nutshell, is converting a secured debt to an unsecured debt. The most common place to find this is in stripping a second mortgage in a Chapter 13. In a down market, there are ample opportunities to strip mortgages, especially people who got 80/20 mortgages. To strip a second mortgage, the second […]

Read More »

K is for Keeping Secured Loans

January 10, 2012  |   Posted by :   |   Ch13 bk,Ch7 bk   |   8 Comments

A secured loan is one where you have pledged something as collateral on the loan. The most common secured loans are car loans and mortgages. What you want to do with the property securing the loan will affect how you treat the debt. If you want to keep the secured property and the debt is […]

Read More »