Chapter 13 bankruptcy is based on the principle of debt reorganization, rather than asset liquidation—you take all of your debts, put them into a pile, and then make repayments into that pile over a three to five year period. (If you need more information about the basic difference between Chapter 7 and Chapter 13, look…
In 2005, Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act, known more familiarly for its unwieldy acronym/nickname, BAPCPA (pronounced “bap-see-pa”). One of the critical, and most criticized, inventions of BAPCPA was the creation of the “means test.” The key principle behind the means test was the idea that individuals with high levels of…
In considering the benefits and drawbacks of filing for bankruptcy, the decision as to which type of bankruptcy to file is extremely important. Below is a basic primer on the two main forms of consumer bankruptcy: Chapter 7 Bankruptcy under Chapter 7 is what attorneys and others frequently call “liquidation” bankruptcy. The primary benefit of…