The Automatic Stay In Bankruptcy
Posted on August 20th, 2010
The instant bankruptcy is filed, for either Chapter 7 or Chapter 13, a protective umbrella called the automatic stay is triggered which protects the debtor and the debtor’s property against the continuance of any action by any creditor. For example, the automatic stay would protect and STOP a pending foreclosure. Additionally, when filing a Chapter 13 bankruptcy, that injunction extends to anyone else who is obligated to repay your debts.
However, the automatic stay is not absolute in that a creditor may restart collection proceedings by asking the court for permission.
Further, there are limits on how long the automatic stay lasts. For exa
Back to School Doesn’t Have to Break the Bank
Posted on August 19th, 2010
Each year, retailers and shoppers alike anticipate back to school sales with the intense focus of a professional athlete. This focus is a result of the high stakes of the event, as reports show the average family of four spends almost $600 getting their children prepared for school.
Even worse, the weakened state of the American economy has heightened the anxiety with which consumers approach late summer shopping. Fortunately, there are ways ensure that you don’t have to break the bank while shopping for school necessities.
To help frustrated consumers, the Sacramento Bee recently provided some wise strategies to carefully budget your school shopping.
Take Your Time
Don’t feel pressured to buy every single item your child needs before the first day of school. The
Teenagers `scared of debt`
Posted on August 18th, 2010
Nearly two thirds of teenagers are `scared` of debt, according to a survey for discount website MyVoucherCodes.co.uk.
Fully 64% of 1,482 teenagers (aged 14-17) questioned said that they`re actually scared of debt. 53% said they don`t trust lenders.
21% said that they didn`t plan to take out a loan or have a credit card – ever. Of the people who didn`t want to take out a loan, 89% added that a mortgage was the only kind of debt they`d ever consider taking on.
Asked about their attitude to debt, 13% said they didn`t want to end up in the same situation as their parents. Read more…
Indiana Lawyer For Bankruptcy: What Does the Means Test Mean For Vehicles?
Posted on August 17th, 2010
Even though I’m an Indiana lawyer for bankruptcy, it often happens that clients come to talk with me who are far from certain that filing bankruptcy in Indiana is the best thing for them. Sometimes, people just want my advice as a debt consolidation lawyer. Or perhaps they want my help to stop foreclosure on their home.
Needless to say, the subject of just how bankruptcy in Indiana works comes up in the discussion, and invariably that comes around to the Indiana means test. The means test is a standard by which the court determines if someone is eligible to file bankruptcy in Indiana, and which type of bankruptcy they qualify for.
As part of providing Indiana bankruptcy information, I explain that, if your income is less than the median income earned by Indiana residents during the last six months, you could probably qualify to file either Chapter 7 bankruptcy, or you could file under the new Chapter 13 bankruptcy laws of Indiana. If your income is less than the median, on the other hand, Chapter 13 could be your only option.
Once I’ve explained the means test to my clients, my next step as a bankruptcy attorney in Indiana is to explain that federal law actually sets standards for each kind of expense. There are allowable amounts that people who file bankruptcy in Indiana are allowed to keep for their own use, to support themselves and their families, before they’re expected to make debt repayments. For example, one reader asked about his family of six, and was told that the allowance would be around $1900 a month for food, housekeeping supplies, apparel and services, personal care products and services, and miscellaneous.
Well, there’s an allowance for car expenses as well, which include lease payments or car payments, gasoline, and maintenance. In the Midwest region, for example, the monthly vehicle allowance is $210 for one car, $420 for two.
One of the Columbus bankruptcy lawyers from the Zuckerberg bankruptcy law offices there brought an interesting case to my attention. In this court case, debtors had filed Chapter 13 bankruptcy and had claimed a vehicle allowance as part of their allowable expenses. The thing was, though, they both owned their cars free and clear. The question before the court, then, was – could they still claim the car expense allowance and use the money for other expenses?
The court’s answer was, very simply “yes”. These two debtors had no monthly car loan to pay or lease obligation, either prior to filing bankruptcy or now, but they were allowed to claim an allowance for avehicle expense anyway!
Goes back to what I was saying yesterday – all’s fair in bankruptcy!