Can I use Bankruptcy to wipe out my car loan and still keep my car?

  I heard something very disturbing last night. A potential client (“PC”) came in for an initial consultation, wanting to file for bankruptcy. She had very little debt, comparatively speaking, of course. Her biggest problem was that she was not earning enough money to pay her monthly expenses. While I explained to her that a bankruptcy will not fix that problem and offered alternative possible solutions, she inquired about her car. She has a 2008 vehicle that she purchased new. Her payments are almost $400 / month, which is a lot for her. She can’t afford this car and wants…

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What are the types of bankruptcy and what are the differences between them?

For most individuals, the primary types of bankruptcy you will consider filing are a Chapter 7 or a Chapter 13 bankruptcy.  A Chapter 7 is what is sometimes referred to as a “straight” or liquidation bankruptcy and the Chapter 13 is referred to as the “repayment” bankruptcy. The primary difference between them is that the Chapter 7 wipes out all eligible debt without any repayment and in a Chapter 13, you typically pay back a portion of your debts. This article will focus on who is eligible for a Chapter 7 and why you would opt for that Chapter. In…

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Chapter 7 and Inheritances

What happens if, after you file for a Chapter 7 bankruptcy, a parent, spouse or other family dies leaving you some money or other items of significant value? Does this affect your bankruptcy? Are you entitled to keep the inheritance or must you turn it over to the Trustee or your creditors? The answer to these questions is, of course, it depends. What does it depend on? Let’s discuss. You file for a Chapter 7 bankruptcy. You are a typical “no asset” case, meaning you don’t have any assets to be liquidated and distributed to your creditors. You may or…

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I can’t file for bankruptcy – I’ll lose my house (car, boat, etc.)!

  This has got to be the #1 misconception I hear on an almost daily basis from people. They often refuse to consider filing for bankruptcy relief because they believe, often incorrectly, that they will lose their home or car. This is not necessarily true and one should not refuse to consider bankruptcy as an option under the (oft-mistaken) belief that it always is true.  Let me explain. For the purposes of this discussion, I am going to focus on the more frequently used chapter of bankruptcy law – Chapter 7. This is the chapter under which you get rid…

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