Bankruptcy Protects People

People file bankruptcy to discharge unsecured debts. Bankruptcy discharge eliminates personal liability to pay back debts. Some debts are not discharged in bankruptcy. The discharge does not eliminate liens on property. For example, a lien on a vehicle title is not removed by the bankruptcy discharge. Continue reading

Chapter 13 Plans Can Change

Change Your Plans

It’s possible to change the terms of your chapter 13 plan. Payment terms can, with court approval, change even after the plan is confirmed. For example, if you have a permanent change to your income, the court can approve a lower payment. Continue reading

Garnishments And How They Work

Creditors can garnish your wages once they obtain a judgment from court. The judgment states the amount you owe them. The maximum total amount that can be taken from you is 25 percent of your disposable income. “Disposable pay” means the amount of money left in your paycheck after amounts required by law, like taxes, come out. However, you are always guaranteed to be left with an amount per week that is 30 times the federal minimum wage, which is now $7.25 per hour. Continue reading