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If you’re behind on your mortgage, Chapter 13 gives you up to 5 years to catch up. How does this actually work?

Filing bankruptcy buys you a little time or years of time, either to move to a new home or else to save your present home.

Once part of your wages or salary is garnished, it’s gone forever. Unless it’s a “preference.”

Bankruptcy kills a garnishment, but only if it’s filed in time.

Bankruptcy is able to protect your paycheck because it is more powerful than most creditors’ garnishment court orders.

There are advantages to filing bankruptcy before your deadline to respond to a creditor’s lawsuit.

As practicing lawyer with twenty years of experience in estate planning, I have frequently been asked: “Do I need a living trust?”  Quite frankly I have found that not everybody does.

Don’t deal with a lawsuit by disregarding it but rather by using it as a great incentive to take charge of your financial life. If you are behind on paying your creditors and are sued by one of them, you’re likely in pretty tough financial shape. Usually collection agencies and creditors chase you with phone calls and collection notices for months before filing a lawsuit.

What if you want to keep your home or vehicle, but might not be able to do so later? If important enough, Chapter 13 may be worth it to you.

Keep your vehicle whether you are current on it or not, and maybe reduce its monthly payments and the loan balance.