The concept of “cramdown” in Chapter 13 Bankruptcy can help you keep your car for a lower payment if you are upside down by reducing the principal of your loan and the interest rate you are paying. Let’s look at an example. Suppose you bought a car in 2008 for $20,000. After driving it for…
Many clients come to me focused on getting a Chapter 7 case filed, which I am happy to help with. However, even if you qualify for a Chapter 7, here is a list of some advantages of filing a 13 instead: The upfront costs are lower. Chapter 7 clients are required to establish a payment…
I sat down with a client yesterday who thought she would never get credit again if she decided to file a case. She had talked to a collection agency which implied that a bankruptcy case would mean she would never be able to use a credit card again. The truth is you will receive approximately…
Student loans are almost impossible to discharge entirely through a bankruptcy filing in Asheville and around Western North Carolina. However, in some situations you are allowed to favor student loan creditors in your Chapter 13 case. By setting up this type of plan, you can reduce the amount you owe on student loans instead of…
Yesterday, I sat down with a client who explained how she had tried to do the “right thing” by signing up with a debt consolidation service. I had not heard of the company to which she had been paying $419 monthly for the past year, so I did a Google search on them. Attorney Generals…
Debt collectors have a poor reputation for being willing to do or say just about anything if it will get you to pay them money for a past debt. Their best strategy, the one most effective, is imposing fear or guilt on one of their targets. Filing a bankruptcy case stops collector calls immediately when…
Many people have made large investments in their homes with the idea that doing so offered security to their family. With our housing crisis, those same folks have seen their equity washed away by tumbling prices. Chapter 13 bankruptcy offers a chance for clients to catch up on payments after they have fallen behind, and…
The choice of bankruptcy attorneys is a personal one, and you have great choices when selecting an Asheville Bankruptcy attorney. I have a rule in my office of only agreeing to represent someone if I truly enjoy their company during our initial consultation. That way, I’ll have reasons beyond my ethical obligations and fees to…
One problem I see regularly in Western North Carolina is folks who are paying monthly minimums on credit cards instead of feeding their retirement account with that same money. Of course, the same people are the ones who tell me, “These credit cards are my debts, and I intend to pay every last one of…
Chapter 7s are used to eliminate unsecured debt: credit cards, medical bills, personal loans, mortgage deficiencies, car repossession deficiencies etc. The process is quick, and the relief is dramatic. The means test determines whether you qualify for Chapter 7 relief or not. The means test is broken down into two parts. If you are below…