Bankruptcy Law
How Chapter 11 Works
A chapter 11 case begins with the filing of a petition with the bankruptcy court serving the area where the debtor has a domicile or residence. A petition may be a voluntary petition, which is filed by the debtor, or it may be an involuntary petition, which is filed by creditors that meet certain requirements.…
Read MoreHow Chapter 7 Works
A chapter 7 case begins with the debtor filing a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets. (3) In addition to the petition, the debtor must also file with the court: (1) schedules…
Read MoreStop the Foreclosure and Save your Home in a Chapter 13 Bankruptcy
Chapter 13 bankruptcy can be an option if you are facing foreclosure after falling behind on your mortgage payments. It will allow you to pay off the amount owed through a repayment plan, usually within 3-5 years, depending on your income and other circumstances.
Read MoreTaxes in Bankruptcy Proceeding
In Washington, you may retain any property that falls into one of the exemptions categories if you file bankruptcy. However, there are certain debts that you will not be able to discharge even in bankruptcy, among them are certain non-dischargeable taxes, as for example, back taxes are not dischargeable unless the tax meets discharge requirements.…
Read MoreFavorite Tax Provision Expired: Avoiding Taxes on Cancelled Mortgage Debt
If your debt to someone else has been canceled or forgiven, the canceled amount may be taxable. Generally, to the extent that a loan from a lender is not fully satisfied and a lender cancels the unsatisfied debt, you have cancellation of indebtedness income. The Mortgage Debt Relief Act of 2007 generally allows to exclude…
Read MoreLoan Modifications Before, During and After Bankruptcy
A loan modification does not re-establish liability on the loan. While the terms of the loan might change, the loan is not being refinanced. Refinancing the property into a completely new loan would re-establish liability, but not a loan modification.
Read MoreThe TOP 5 Pros and Cons of Filing for Bankruptcy
To file or not to file, that is the question… The decision of whether or not to file for Bankruptcy depends heavily on your personal situation. For some, filing for Bankruptcy can be just the helping hand they need to get out of the hole and get their financial life on track. For others, Bankruptcy…
Read MoreContemplating Bankruptcy?
Bankruptcy is a viable solution for many individuals and businesses, but there is items you should know before filing or you may lose your personal or real property. When a bankruptcy is filed, a debtor is entitled to claim certain bankruptcy exemptions. Exemptions are values in personal and real property a debtor in eligible to…
Read More5 Things to Always Avoid When Getting Ready To File
There’s a lot to pay attention to if you’re getting ready to file for Bankruptcy. Ultimately, you want to make sure that you’re doing everything by the book so as to avoid any and all risks you may be taking. Filing for Bankruptcy is designed to give you a fresh start, so the last thing…
Read MoreWhen Chapter 13 Bankruptcy Is Better Than Chapter 7 Bankruptcy
For some debtors, Chapter 13 bankruptcy is a better option than Chapter 7 bankruptcy. And sometimes Chapter 13 is the only option because a debtor is not eligible for Chapter 7 bankruptcy. It’s important to sort out the issues and decide which form of bankruptcy is best for you. Many debtors assume that Chapter 7…
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