Bankruptcy

Before you decide to file for bankruptcy, it’s important to understand what assets you can keep and what assets creditors could potentially take away under certain bankruptcy filings.

When it comes to bankruptcy, Chapter 7 and Chapter 13 serve different purposes and suit different financial situations. The crux of the difference lies in how they handle your debts. Chapter 7 involves liquidating non-exempt property to pay off what you owe, whereas Chapter 13 allows you to create a repayment plan to settle your debts over three to five years. But of course, there’s more to it than that.

At the Atchley Law Firm, PLC, we believe that knowledge is power. We’re here to help you understand the complex terms and processes involved in filing for bankruptcy. With a clear understanding of these terms, you’ll be better equipped to make informed decisions about your financial future. 

Bankruptcy can be confusing, with many myths making it even more intimidating. In this article, we’re here to debunk some of the most common bankruptcy myths in a straightforward, friendly manner so you can make informed decisions if you ever find yourself in financial trouble.

Some not-so-clear amendments to the bankruptcy code in 2005 have opened the door to widely varying interpretations, resulting in different courts around the country issuing different opinions about whether income tax debt on a late-filed tax return can ever be discharged in a Chapter 7 bankruptcy.

It is true—certain taxes can be discharged in chapter 7 bankruptcy. The bankruptcy code allows some individual income tax debt to be wiped out forever if a few requirements are met.