| Brooks Cotten | 0 Comments | Student Debt

Reorganizing Student Loans

There is more outstanding student loan debt in the United States today than there is credit card debt.  The credit card debacle of five years ago is being replaced by a student loan debacle, and the situation is projected to continue.

It is widely believed that you can’t do anything about student loans in bankruptcy.  However, the bankruptcy code does provide for “hardship discharge” of student loans in Chapter 7 under extremely limited circumstances that requires expensive litigation.  (Unless you are old and in terrible shape, you probably won’t qualify.) Read more “Reorganizing Student Loans”

| Brooks Cotten | 0 Comments | Bankruptcy Law

Bankruptcies and Vehicle Repossession: Q & A

Q: I was a little behind on my car payments, and my car was repossessed. Can filing a bankruptcy help me get it back?

A: Yes. Chapter 13’s are often used to cure defaults on car notes. Having the car repossessed does not in and of itself make you lose all of your rights in the car. So long as you have any remaining rights, you can usually use a Chapter 13 to force the lender to give it back and let you pay for it through your Chapter 13 plan. Read more “Bankruptcies and Vehicle Repossession: Q & A”

| Brooks Cotten | 0 Comments | Bankruptcy Law

Bankruptcies and Foreclosure: Q & A

Q: I’m behind on the house payments. My bank stopped accepting payments, and I received a letter saying that my mortgage has been referred to a lawyer for foreclosure. What does that mean? Will filing a bankruptcy help this situation?

A: “Foreclosure” is the process by which the lender on real estate takes title back from the borrower because of a default, usually by missing payments. There is no minimum number of missed payments that will trigger this action. If payments are not made according to the schedule set out in the note, the bank has the discretion to foreclose.

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| Brooks Cotten | 0 Comments | Tax Law

You may be able to discharge your old tax debt!

April 15th is tax day, and believe it or not, that may be good news if you owe old tax debt and are considering filing bankruptcy. Contrary to popular belief, some old tax debt can be wiped out (“discharged”) in a Chapter 7, or paid a mere percentage in an appropriate Chapter 13. Tax debts become dischargeable in bankruptcy if, and only if, all of the following are true: Read more “You may be able to discharge your old tax debt!”

| Brooks Cotten | 0 Comments | Bankruptcy Law

What’s the difference between Chapter 7 and Chapter 13?

Chapter 7 and Chapter 13 are different tools that are used to handle different financial problems. Chapter 13 is a debt consolidation plan used to repay debt in full or in part over a period of years. Chapter 7 is a fresh start or liquidation case that is usually finished after only a few months.

In Chapter 13, you can force secured creditors like mortgage lenders or car lenders to allow you to cure defaults over time, whether they agree or not. In Chapter 7, unsecured debts are discharged without payment, and you indicate your preference (intent) as to whether or not you want to “reaffirm” and keep paying your secured creditors. Alternatively, you may surrender the collateral and discharge the debt.

Read more “What’s the difference between Chapter 7 and Chapter 13?”