This time of year, people who are considering filing bankruptcy worry about whether they will lose their income tax refund if they file bankruptcy. The short answer is: no, you do not have to give up your tax refund in bankruptcy – as long as you do some planning. Many people deliberately overwithhold on their [...]
Category Archives: chapter 7
Filing Bankruptcy Without Losing Your Tax Refund
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Bankruptcy Planning in Unstable Economy
Face Your Fear The gloom and doom headlines are scary. Many families are behind on their home mortgages, and foreclosures are increasing. The “invisible bread line” of people on food stamps grows longer each day. Unemployment continues to soar. Worry and even fear is natural in these times. But worry or fear never helps. Looking [...]
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Living with Student Loan Debt
With the declining economy and lack of jobs, more people are going back to school. They hope more education will qualify them for a higher paying job. They live on student loans and borrow to pay all expenses. Unfortunately, more education is no longer a guarantee of a higher paying job or even a job. [...]
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Worried About Losing Property in Bankruptcy?
Many people struggling with overwhelming debt do not consider bankruptcy because they believe if they file bankruptcy, they will lose property. This is not true. According to the National Association of Chapter 7 Trustees, 90% of the people who file bankruptcy are “no asset” cases. Does this mean 90% of the people filing bankruptcy don’t [...]
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Tips for People Struggling with Debt Who have Social Security Income
Social security benefits are not counted as “income” for purposes of the means test. Because of this, your eligibility for a Chapter 7 is more likely. In addition, it is not counted in determining “current monthly income” in a Chapter 13, which can make your Chapter 13 payment lower. In other words, if you receive [...]
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The Means Test Gets Meaner for Texans
Qualifying for a Chapter 7 bankruptcy is getting ready to get harder. In a Chapter 7 bankruptcy, if you pass the means test, you are able to file a chapter 7 bankruptcy, and get rid of unsecured debt, such as credit cards and medical bills; or secured debt (if you want to surrender the item). [...]
How Small Business Can Prepare if Bankruptcy is a Possibility
The owner may need to file an individual bankruptcy and dissolve the company. Sometimes a bankruptcy for both the individual and the LLC is best. If the owner believes that the business would be viable if it didn’t have to service the overwhelming debt, starting over by filing a Chapter 7 and starting a new business may work. Meet with a qualified bankruptcy attorney before making any decisions on how to proceed. Pre-bankruptcy planning is essential.