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Bankruptcy Chapter 7 vs 13: Which Is The Best Option?

Debt Free Colorado

Consider your income, assets, creditors, expenditures, and your ability to pass the means test while selecting between Chapter 13 and Chapter 7. Creditors are prohibited from contacting you after your petition is filed. Chapter 7 is a disaster when it comes to secured debt. . The means test decides who can seek debt relief.

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Sixth Circuit Rules that Monthly 401(k) Contributions can be Excluded from “Projected Disposable Income” Under a Chapter 13 Plan

Foster Swift

A Chapter 13 bankruptcy plan requires a debtor to satisfy unsecured debts by paying all “projected disposable income” to unsecured creditors over a five-year period. In a recent case before the U.S. 1] Read More › Tags: 6th Circuit Court of Appeals , Chapter 13.

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Debtor Allowed to Make Voluntary Contributions to Retirement Fund While Repaying Creditors

ABI

In In re Marlena Joy Pizzo , the United States Bankruptcy Court for the District of South Carolina held that a debtor may voluntarily contribute to her retirement plan while paying creditors under a bankruptcy plan. [1] 14] Additionally, a substantial portion of Pizzo’s unsecured debts will be paid through her Chapter 13 plan. [15].

Debtor 40
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Restructuring And Insolvency: What Is A Restructuring Plan?

Hudson Weir

Debt restructuring aims to help ease a company’s financial difficulties via an agreement between a company and its creditors. In the first meeting, court permission is sought to hold a meeting of creditors (the Convening Hearing). A restructuring plan is then proposed to all of a company’s creditors.

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Will Bankruptcy Erase ALL of My Debt?

Sawin & Shea

There are exemptions depending on the property and how essential it is, but anything considered nonexempt will likely be sold to help pay off your creditors. Instead of discharging most of your debt and using your personal property to pay off creditors, a reorganization plan is filed to dela with the debt.

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What Should You Know About Medical Debts & Bankruptcy?

Sawin & Shea

Your medical bills are considered “unsecured debts” which means there is no property that can be taken from you under contract as a result of not paying your medical bills — and most unsecured debts, like medical bills, are eligible for bankruptcy. Your combined total secured and unsecured debts are less than $2,750,000.

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Chapter 13 Bankruptcy Hardship Discharge: Am I Eligible?

Sawin & Shea

Instead of fighting with your creditors, you work with them proactively in the bankruptcy process to resolve your debts. You have already paid your creditors at least as much as they would have received in a Chapter 7 bankruptcy , also known as a liquidation bankruptcy.