For all the reasons you should file for bankruptcy, there are still a few reasons not to file. We can help you figure out if bankruptcy is right for you, and whether your situation is better suited for Chapter 7 or Chapter 13. The first step for many is to get past the notion that there is a stigma attached to filing. There is life during and after bankruptcy.
We are wrapping up our discussion of a case from the 5th U.S. Circuit Court of Appeals that is now on the Supreme Court's docket. The case is about a debtor who filed for Chapter 13 bankruptcy and later converted that bankruptcy to a Chapter 7 liquidation. The bankruptcy trustee had set aside about $5,500 of the debtor's Chapter 13 payments that she then used to pay unsecured creditors from the Chapter 13 bankruptcy.
This is a continuation of our Jan. 10, 2015, post.
We interrupted our discussion of upcoming U.S. Supreme Court cases to talk about tax extenders that could prove especially helpful for people in the midst of or trying to avoid a financial meltdown. Now, we turn back to the Supreme Court's docket and some matters that could change the bankruptcy process.
One of the last things Congress took care of before adjourning was to renew some important tax breaks. We admit that we didn't think this would happen, but it did: Tax breaks that expired on Dec. 31, 2013, were renewed retrospectively for 2014. The result is that tax liabilities will be lower for some of the people who need the help the most.