Monthly Archives: December 2020
How Big is Your Household for the Chapter 7 Means Test?
Congress reserved Chapter 7 bankruptcy for those who are truly needy. Their thinking was that many people with substantial incomes were filing for Chapter 7 when they could really pay off their debts. So Congress created a “means test” that applicants must pass before they can file for Chapter 7 protection. Put simply, the… Read More »
Questions about the Chapter 13 Confirmation Hearing
In a Chapter 13 bankruptcy, a debtor will make monthly payments to creditors for three to five years. This is the longer of the two consumer bankruptcies (the other being Chapter 7), but Chapter 13 works in many situations. The centerpiece of a Chapter 13 bankruptcy is the payment plan, which must be confirmed… Read More »
Credit Card Issuers Are Looking for New Customers
If you’re in the market for a credit card, there is good news. According to Bloomberg, lenders are aggressively trying to sign up new customers for the remainder of the year. Do not be surprised if you see offers showing up by the dozen in your mailbox. Card companies American Express and Capital One… Read More »
How Will Joe Biden Reform Bankruptcy?
Now that Joe Biden is President-Elect, it is a good time to consider his plan to reform U.S. bankruptcy laws. This area did not get quite the attention it deserved during the campaign, but Biden did put out a series of reform proposals. Although he might not get any of these passed, it is… Read More »
Stimulus Funds Cannot Prevent Businesses from Going Broke
The coronavirus pandemic has wreaked havoc on the nation’s business community. With nearly every state issuing stay-at-home orders and limiting indoor gatherings, a host of industries have been pushed to the brink. Congress tried to help businesses by creating the Paycheck Protection Program, called PPP. This program provided loans to small businesses to cover… Read More »
How a Chapter 13 Bankruptcy Can Lower Your Car Loan
For many of our clients, their motor vehicle is their most valuable asset. If they own a home, then their car or light truck is typically their second-most important asset. Unfortunately, motor vehicles lose value rapidly. It isn’t unusual to owe far more on a car loan than your vehicle is even worth. Interestingly,… Read More »
Can You Rent an Apartment after Bankruptcy?
Renting an apartment is challenging, especially in South Florida. Once upon a time, landlords agreed to rent to a tenant based on nothing more than a handshake. But today most landlords require an extensive application—and a credit check. It should not be surprising that a bankruptcy will stay on your credit for years. In… Read More »
Should You File for Bankruptcy after the Holidays?
For many Floridians, the stress of the holidays is matched only by the financial hangover they suffer when they open their credit card bills in January. At Nowack & Olson, we hear from many people who assume that the best time to file is right after the holidays. Actually, it is more complicated than… Read More »
Will the Bankruptcy Tsunami Arrive in 2021?
When the coronavirus pandemic hit, many people assumed that massive job losses would trigger a bankruptcy tidal wave. As experienced Plantation bankruptcy attorneys, we suspected the same. However, the number of consumer and business filings has not been unusual. Still, many people are expecting the tsunami to arrive in 2021. According to an article… Read More »
Should You Seek Dismissal of Your Chapter 13 Bankruptcy?
A Chapter 13 bankruptcy provides debtors the option of paying off debts for 3-5 years without needing to give up any property in return. At the end of the payment plan, certain unpaid debts will finally be discharged, i.e., wiped out and no longer a nuisance. However, you might realize at some point after… Read More »