The means test is a formula established by federal bankruptcy law meant to evaluate whether or not a debtor is able to pay his or her outstanding debts. The means test requires debtors who are contemplating filing for bankruptcy to calculate their average monthly income from all sources in the six months prior to the intended bankruptcy petition filing date.…
If you have fallen behind on paying a number of debts and have decided to file for bankruptcy, you may still be able to protect your car from repossession through either a Chapter 7 or Chapter 13 bankruptcy petition. Once you file for bankruptcy under either of these chapters, the automatic stay goes into effect, preventing all creditors from contacting…
Lien stripping is a debt-relief strategy available primarily in Chapter 13 bankruptcies whereby junior liens on your property, provided they are wholly unsecured, are eliminated. Junior liens include any loans taken on a piece of property in addition to your first mortgage. Most typically, junior liens are second or third mortgages, home equity loans, or home equity lines of credit…
A common concern of clients when deciding whether or not to file for bankruptcy is the effect this type of legal proceeding will have on their credit rating and their ability to obtain loans, home mortgages, credit cards, and other forms of credit. A bankruptcy may remain on your credit record for a period of up to 10 years from…