http://www.thekybankruptcyblog.com Bankruptcy case studies, tips and resources for Kentucky and Southern Indiana Mon, 12 Sep 2011 19:47:07 +0000 http://backend.userland.com/rss092 en Many debtors with serious financial problems also own vehicles that are underwater. Fortunately, the federal Bankruptcy Code offers several options for the debtor to consider. One of the most sensible for many debtors is a Chapter 13 cram-down of the vehicle loan. A cram-down is simply the reduction of the ... http://www.thekybankruptcyblog.com/2011/09/12/chapter-13-vehicle-cram-down Realizing that you can no longer pay for your home means that you have difficult decisions to make.  While modification and even lien stripping in bankruptcy may be options for some, if you truly cannot afford to keep your home, you must decide on the best way to walk away.  Do ... http://www.thekybankruptcyblog.com/2011/09/09/how-to-walk-away-from-a-mortgage Every so often a client will say, “I am hopelessly in debt, but I don’t want to ruin my credit score with bankruptcy.  It is still very good.”  This statement is just like the old joke, “I can’t be broke, I still have checks!”  A credit score is supposed to ... http://www.thekybankruptcyblog.com/2011/09/07/how-to-protect-your-credit-when-you-are-broke When a small business encounters tough times, it is not uncommon for the business owner to do what is necessary to keep the business alive.  The obligation to keep the business going for family and employees is strong, and can often result in the business owner making decisions that create ... http://www.thekybankruptcyblog.com/2011/08/30/small-business-employers-can-face-big-trouble-from-irs A new federal rule that was effective on May 1, 2011, will increase protection for exempt funds in a garnished bank account. Federal law already protects many federal benefits, but it is currently the responsibility of the individual to claim these funds as exempt. Often the bank will freeze a ... http://www.thekybankruptcyblog.com/2011/08/26/new-federal-protection-for-exempt-bank-funds The bankruptcy means test is a calculation designed to identify debtors who can afford to pay some of their unsecured debts (for instance, credit card debt) and encourage repayment of these debts through a Chapter 13 repayment plan.  The first part of the means test determines whether your current monthly ... http://www.thekybankruptcyblog.com/2011/08/22/bankruptcy-means-test Your bankruptcy attorney has many powerful tools to help you keep property while eliminating debt.  One tool is lien avoidance, which is available to both Chapter 7 and Chapter 13 debtors.  The general rule in bankruptcy is that debts secured by a lien must be paid or the property must ... http://www.thekybankruptcyblog.com/2011/08/18/lien-avoidance-in-bankruptcy Just because a relative is older and living on a fixed income does not mean that he or she is also debt-free.  Many older Americans struggle each month to pay unsecured debts from very modest incomes.  The most common forms of unsecured debts are credit cards and medical expenses, and ... http://www.thekybankruptcyblog.com/2011/08/15/discussing-bankruptcy-with-an-older-relative The U.S. Treasury Department has developed an online calculator to assist homeowners in determining eligibility for assistance under the federal Home Affordable Modification Program. HAMP is a federally funded program that defines the process for borrowers who are in default, at risk of imminent default, or in foreclosure to modify ... http://www.thekybankruptcyblog.com/2011/08/12/hamp-calculator-helps-determine-modification-eligibility A loan is “secured” when property is pledged by the borrower as collateral.  Should the borrower fail to repay the loan, the collateral is taken by the lender and sold to repay the debt. There are two types of secured loans: (1) purchase money security interest loans; and (2) non-purchase ... http://www.thekybankruptcyblog.com/2011/08/08/secured-loans-in-bankruptcy