In the April 5 issue of Bloomberg Businessweek, Aetna CEO Ron Williams was asked if premiums would go up as the result of health care reform. Williams said that absolutely they would go up and “some” of the things driving those are the additional taxes on the industry.
That was the bad news your health insurance premiums will go up, but they good news is that they are still deductible in bankruptcy in the means test. In Chapter 7 you can buy health insurance right before filing or if your premiums go up under both situations and still deduct the new higher amount in the means test. For those in Chapter 13 you can even buy it after you file and count the increased amount as an expense deduction.
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Health Insurance CEO: Premiums will go up – Still deductible in bankruptcy means test
Saturday, April 3rd, 2010Supreme Court rules that Chapter 13 plans that discharge student loans are binding even if there were legal errors in the process
Saturday, April 3rd, 2010Recently in United Student Aid Funds v. Espinoza, 08-1134, the Supreme Court Ruled that a Chapter 13 plan is binding on a creditor with actual notice even if it is legally defective. In Espinoza the Court ruled that the plan was binding even though a separate lawsuit should have been filed. The main lesson for creditors and benefit for debtors is that confirmed Chapter 13 plans are binding even if there are procedural irregularities. This is good for us!
More foreclosures in 2010 and more drops in home prices
Saturday, February 6th, 2010Mark Zandi, Chief Economist at Moody’s Economy.com and former advsier to presidential candidate John McCain said today that the foreclosure prevention intiatives have been ineffective and that we will see more foreclosures in 2010, on C-SPAN at a forum by the Urban Institute. He also said that this will cause a drop in home prices.
Additionally Zandi also said the overalll outlook for the econony is not good. My opinion is that Zandi is right. The press and the politicians have been trying to convince us that things are getting better while we all see that things are getting worse. Zandi is courageous to tell the truth that things are not getting better and that these so called mortgaqe modification programs are not accomplishing anything. It is time that Congress give bankruptcy judges the power to modify home mortgages of debtors’ primary residences.
Do make charitable donations before and during your bankruptcy
Wednesday, January 20th, 2010Many of us tithe to our churches and give money to the Red Cross such as for Haiti earthquake relief. The good news is that the Bankruptcy Code protects these donations as long as they are 15 percent of your annual income or less.
As long as your donation is to a religious or charitable non-profit organization it is protected in several ways. In Chapter 7 it does not count against you on the means test, it will be deducted from your “disposable income” as long as you intend to continue the donations every month.
A Chapter 7 trustee also cannot void charitable gifts with the 15 percent limitation. In Chapter 13 you can continue to give up to 15 percent each year during the case and it cannot be held against you. It should be listed in your budget. In short continue exercising your faith and enjoy the pleasure of giving. It is better to give than to receive!
I will be on CNN Radio this Saturday – Bankruptcy and Credit Scoring www.cnn650.com
Saturday, September 26th, 2009I will be on CNN Radio, 9 am CT, this Saturday, on Bankruptcy and Credit Scoring. Tune in at www.cnn650.com or 650 AM in Houston.
Chapter 11 is sometimes the solution
Friday, September 25th, 2009Most consumer bankruptcy attorneys do not understand Chapter 11. Most of our cases are Chapter 7 or 13, but there are sometimes that Chapter 11 is the best choice.
The most common use of Chapter 11 for indvidual debtors whose debts exceed the approximately $1 million secured and $336K unsecured Chapter 13 debt limits. Those above these amounts who have a business or other non-exempt property cannot do Chapter 7 or they will lose it to the Trustee. While Chapter 11 is expensive if done right it can provide you with some incredible benefits. One of the best advantages is that you can take more than five years to pay off your creditors. Another is that you can cram down vehicles even if you have not had them for 910 days. Finding the right attorney is hard. I represent Chapter 11 clients and I will consider taking your case even if you live outside of my area. Feel free to call (888) 305-1919 to make an appointment.More numbers false signs of a recovery
Wednesday, September 9th, 2009The Mortgage Bankers Association reported that loan applications rose 17 from the week before says the Hosuton Business Journal, perhaps in an attempt to grab headlines that the economy is improving. Asie from the fact that is just one week, it is just another example of how the media is part of the problem by portraying a recovery that is not happening.
Bankruptcy filings also increased in August, especially Chapter 13 which is usually used to save a home from foreclosure. This is a better barometer of the economy. I think it will be two years before we are out of the economic crisis because we have not seen the full fallout of the mortgage crisis. Chapter 13 remains the best option for homeowners who want to save their home from foreclosure as mortgage companies still refuse to modify most distressed borrowers loans.
Redeem your car in Chapter 7
Saturday, August 1st, 2009In Chapter 7 you have the option of redeeming your car by paying or getting a loan only for what it is worth even if that is a lot less than what you owe on it. For more information click here to find out more about your options for redemption.
The economy is going to stay bad for several years and bankruptcy filings continue to rise
Saturday, July 25th, 2009Recent hotel industry association figures released the other day indicate a 17.5 percent drop in revenue per available room. It is very hard to believe the reports of a rebound when you see such numbers. Frankly there are no credible signs of a rebound.
Until Congress comes up with a real fix for the mortgage crisis and passes the mortgaga nodification bill, things will just get worse. Right now all they seem to do is to throw money at failed businesses.
Since there is no immediate relief in sight for the economy, bankruptcy filings will continue to rise. Those who still have jobs but are susceptible to layoffs may want to make plans for what they would do if they lose their jobs.
Chapter 13 has an undeserved bad rap, it is actually a very good option
Saturday, July 18th, 2009It seems that often Chapter 13 gets a bad rap. I disagree I think it is a good chapter. Here are some good reasons to file Chapter 13, other than stopping foreclosures and repossessions:
-You keep all your property even if it is non-exempt.
-You can get another Chapter 13 discharge in two years!
-You can get another Chapter 7 discharge in six years or less sometimes!
-You have an absolute to dismissal if you want out.
-It can sometimes be less than 3 years, e.g. 6 months!
-Get divorce decree debt discharged.
-Get civil fines and penalties, including motor vehicle surcharges and toll fines discharged.
-Get divorce decree debts discharged.
These are many good reasons to file Chapter 13. Also, if you fail the means test filing 13 is not necessarily so bad, because sometimes claims of creditors can be struck and you can finish in 6 to 9 months. If you are current on your mortgage and car loans there are a lot of things you can do in Chapter 13.
One of the best things is that if you run into new financial problems you can file again and get a discharge of your new debts only two years after the first Chapter 13 filing. Even better if you had a Chapter 13 that lasted less than 3 years because most of the claims were struck, then you can file Chapter 7 and get a discharge right away!
The benefits of Chapter 13 are a little complicated to explain in general because it varies a lot depending on your circumstances, but they are many. You should definitely consider Chapter 13 if any of the above reasons appeal to you.
