The big news in recent days is the City of Detroit's effort to free itself from its financial woes by filing for bankruptcy. Yes indeed, Chapter 9 of the US Bankruptcy Code has in recent years been utilized by various cities and counties to get a fresh start. Most people are familiar with an individual's [...]
Every month I visit with clients who are getting sued or on the verge of getting sued in the Wisconsin Circuit Court or Wisconsin Small Claims system. Most often these lawsuits are collection lawsuits brought by credit card companies but sometimes they are personal injury lawsuits...like cases arising from car accidents. The filing of a [...]
Now that we're in tax season, it is appropriate to say a little something about federal and Wisconsin state income tax refunds. The main thing to know is that a debtor's right to receive a federal and Wisconsin state income tax refund may be considered an asset of the bankruptcy estate unless the refund can [...]
Most clients these days have some type of retirement account, whether it be a 401k, 403B, SEP, profit sharing plan, or an IRA. Clients contemplating bankruptcy understandably want to know, "Is my retirement account safe?" or "Am I going to lose that if I file for bankruptcy?" Fortunately, the general answer has been that a [...]
The term "chapter 13" refers to the chapter of the bankruptcy code which allows individuals with regular income to pay off all or a portion of their debts through a court ordered plan. A chapter 13 bankruptcy is sometimes called a repayment plan, reorganization or wage earner's plan. It allows individuals with steady income to [...]
You may be eligible for HAMP if you meet all of the following criteria: -You obtained your mortgage on or before January 1, 2009. -You owe up to $729,750 on your primary residence or single unit rental property -You owe up to $934,200 on a 2-unit rental property; $1,129,250 on a 3-unit rental property; or [...]
Home Affordable Modification Program If you are not unemployed, but you’re still struggling to make your mortgage payments, you may be eligible for the Home Affordable Modification Program (HAMP®). HAMP may lower your monthly mortgage payments in order to make them more affordable and sustainable for the long-term. If you currently occupy your home as [...]
Chapter 7 refers to the specific part of the United States bankruptcy code that deals with this particular type of bankruptcy. In a Chapter 7 bankruptcy, a person's debts, those that are dischargeable that is, are completely "discharged" or eliminated. Individuals are generally able to keep their houses, cars and all other property as part [...]
Unlike in a Chapter 7 bankruptcy, where a debtor may have certain non-exempt assets liquidated, in a Chapter 13 bankruptcy, the debtor maintains possession of assets. There is no liquidation of assets in a Chapter 13 bankruptcy. This distinction serves an important purpose for individuals who need to seek relief under the Bankruptcy Code but [...]
It is important in drafting your bankruptcy that you list all of your assets... especially if you want to keep them! What do you mean by "assets"? Generally speaking, the term "assets" refers simply to all of your property. It does not matter if the property is worth a lot, or just a little. If [...]