Do rising real estate values matter if you are thinking about filing bankruptcy?
Not that long ago, the values of many homes here in California Bay Area have dropped dramatically and the real estate bubble has burst. Or has it? The real estate market has been bouncing back in many parts of the Bay Area. A fairly typical situation was described by my …
What happens to joint or co-signed loans or leases when you file bankruptcy?
If you have any any joint or co-signed loans or leases, typically your liability for them will be cleared when you file bankruptcy, if the debt is of type that can be discharged. For example, if you co-signed a student loan, your liability for the student loan will not be …
If you have unfiled taxes for prior years, will these tax liabilities go away or get discharged in bankruptcy?
No. Prior to the changes in bankruptcy laws in 2005, the scope of the discharge of taxes was considerably broader. Discharge of debts in a Chapter 13 case was aptly called a “super” discharge. While you can still discharge some old tax liabilities, be sure that all of your returns …
If you are in a Chapter 13 bankruptcy, can you include taxes in the payment plan?
Yes. You can repay unsecured income taxes at 0% interest through the Chapter 13 plan and avoid interest and penalties. Secured taxes (tax liens) can be repaid at low interest. Some of the old personal taxes can be wiped out completely. Past due property taxes, not just personal taxes, can …
How much do you pay back in Chapter 13?
In any Chapter 13 case, monthly payments are sent to a bankruptcy trustee over a period of three to five years. Some creditors usually get repaid fully, for example, IRS and your car lender if you are keeping the car, and some creditors get nothing or some percentage of what’s …
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