The “Best Interest of the Creditor” Test
This is an analysis that we must do on every chapter 13 that we plan on filing with the bankruptcy court. The “best interest of the creditor” test is in place to make sure the creditor will be no worse off by the debtor filing for relief under chapter 13 of the code. Chapter 7 [...]
Paying your taxes with a credit card
I think it is common knowledge that most recent governmental tax liabilities are not dischargeable in a bankruptcy filing. Theses debts are given a priority status and will survive a debtor’s discharge in a chapter 7. In a chapter 13, the debtor will be required to pay the priority tax liability inside the plan. With [...]
The sneaky cross collateralized claim
I spoke in recent posts about a debtor options when in a chapter 7. The debtor can decide to retain a house or car that is secured by a mortgage or car note, but to do so he will have to “reaffirm” the debt that he owes to the lender. As a refresher, when someone [...]
Stephen Baldwin files chapter 11
Another celebrity has filed for bankruptcy protection. Stephen Baldwin and his wife Kennya Baldwin filed for Chapter 11 bankruptcy protection in New York a month ago. What is a Chapter 11 bankruptcy? This filing is analogous to the chapter 13 filing that many Americans file. The reason for Mr. Baldwin filing a chapter 11 is [...]