Today I got yet another client who was disgusted to have wasted his money with a debt settlement company. Why was he so eager to file bankruptcy? Just like many other clients before him, he was upset because he had just been served with a lawsuit from one of his credit card companies. This happens time and time again. In … Read More
I Filed Chapter 7 Bankruptcy About 5 Years Ago, But Now Have New Debts
A client recently came into my office with about $18,000 in credit card debt. He had filed Chapter 7 in early 2005, but he had taken out several credit cards after his case was completed. He had become unemployed back in 2008 for awhile, and although he was now working, he simply couldn’t get back on track with his credit … Read More
What’s a “Cure and Maintain” Chapter 13 Bankruptcy?
I’ve seen a lot of cases in my 17 years as a Pittsburgh bankruptcy lawyer. The most common Chapter 13 bankruptcy case is one in which a homeowner files for Chapter 13 relief in order to protect his home from mortgage foreclosure. Here’s a chronology of a recent Chapter 13 case that I filed in April 2010. My clients, a … Read More
If I File Bankruptcy, How Will it Affect a Co-signer?
First, it’s important to know a couple of concepts. When you file either Chapter 7 or 13 and you have a co-signer on a specific debt, your bankruptcy filing will not discharge (wipe out) your co-signor’s liability. If you receive a bankruptcy discharge order, then only your liability is wiped out. Moreover, co-signed loans are set up by banks and … Read More
Can I Repay Any Debts After My Chapter 7 Bankruptcy Case?
Let’s talk about two kinds of debts that you can repay after your Chapter 7 case has been concluded. First, there are secured debts like car loans and mortgages. Many clients typically say when we sit down to review their Chapter 7 petition and paperwork: “But, I don’t want to include my car loan and mortgage in the bankruptcy.” Well, … Read More
My House Is Up For Sheriff’s Sale–Is It Too Late to File Chapter 13?
As you know, in Allegheny County, Pennsylvania, sheriff’s sales on real estate are held on the first Monday of each month starting at 9 am. Although you can theoretically file a bankruptcy case at 8:55 am on Monday to prevent your sheriff’s sale from going forward, you don’t want to be quite that risky and wait that long. I often … Read More
How to Get a Car Loan While in Chapter 13 Bankruptcy
First off, one big caveat: I am writing about Chapter 13 bankruptcy as practiced in Western Pennsylvania. Specifically, this is the Court known as the Western District of Pennsylvania. As discussed in a previous post, all secured loans (for example, car loans and mortgages) are paid “inside the plan” on a monthly basis in Chapter 13 cases in Western Pennsylvania. … Read More
When Is My First Chapter 13 Plan Payment Due?
The easy part of this question is the answer: your first Chapter 13 payment is due within 30 days of filing your Chapter 13 plan. This is a rule embedded into Federal Bankruptcy law and it’s pretty clear. Your attorney will tell you this numerous times before your case is filed. Additionally, the Trustee’s office will send you a letter … Read More
What is “credit repair” and why you shouldn’t pay anyone for it
I recently posted about “Debt Settlement” companies and why you shouldn’t pay for services that you might be able to handle yourself. Today’s pet peeve is the “credit repair” industry. Anyone who promises to erase negative events from your credit report is promising you more than they can deliver. No one can “erase” negative occurrences such as lawsuits filed or … Read More
You’re in Debt–what are your non-bankruptcy alternatives?
My hat goes off to you for just acknowledging that you’ve got to do something about your debts. Obviously, it’s a bad situation to be in, so here are your alternatives for getting out of it. If you don’t do anything though, then you’re likely to get sued if you default on a credit card. And that will damage your … Read More