Years back I had a man who had his DWI reduced and he failed the driver intervention program. He failed on the first question of the test. They asked, “What is the first thing you do when you get into your car?” His answer: ”Turn on the jams (radio).” Lacks a certain amount of common…
You finally decide to file bankruptcy. I do not expect you to be a lawyer, or to even know the law. There are two things you should never ever do financially, especially in the lead up to bankruptcy. Each basically involves debt consolidation instead of bankruptcy. When should you do them? NEVER! The things you…
Before you see me you need to avoid common mistakes in bankruptcy planning. You need information about bankruptcy. Maybe you need to file. Perhaps you are looking to find the right attorney for a loved one. For whatever reason, you are here with me now. I want to tell you a story. It is about…
What happens if you borrow too much money from your 401k to file bankruptcy? A client recently created this problem. She desperately needed to file a chapter 7 as the result of a very large garnishment. With the garnishment, she was unable to come up with the money to file bankruptcy to stop the garnishment. …
You can use your 401k payroll deduction to reduce your chapter 13 plan payment dollar for dollar. It may be hard to believe, but you may be part of the community who has excess income for bankruptcy purposes. Excess income is determined in the following ways: The good-faith income test In a chapter 13 the…
Chapter 13 cases can be dismissed following confirmation while they are pending. Normally this step is taken by the Chapter 13 trustee himself. When he does money is the issue. For some reason you have might failed to make plan payments when due. Commonly it happens if you or your spouse loses a job or…
Do you know you can keep your 401k and file bankruptcy? Yes, all of it. The first post I did for this site cautioned against using your it as an ATM. Recently the news reported that record numbers of middle income families had tapped retirement funds for emergencies. Think about having a 401k retirement nest…
Have you thought of cashing out your 401k instead of filing bankruptcy? The plan says you can always take a loan, or get the money if it is a hardship. If stopping the bill collectors isn’t a hardship, what is? Need breathing room, don’t you? Put your foot on the brake! Your 401k is not an…