The Law Office of David Carl Hill
An Experienced Bankruptcy Attorney Serving Kitsap County
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A Blog About The Law In And Around Port Orchard

The Covid Stimulus and Chapter 13

The Covid-19 Pandemic has had a devastating effect on the economy. Individuals and small businesses have been especially hard-hit and unemployment claims have skyrocketed beyond most worst-case scenarios. Congress has passed, by a near unanimous vote, a major stimulus package. One of the key elements of this stimulus is a cash distribution to the vast majority of American citizens. This portion of the stimulus is intended to give Americans a little extra buying power, which will help small and large businesses stay afloat.

How do you know when you should file for bankruptcy?

Most Americans struggle with debt. Whether it's from medical bills or credit card debt, getting behind on payments can be an overwhelming and stressful experience. But what can be even more daunting is the prospect of having to file for bankruptcy.

However, just because you have a considerable amount of debt doesn’t mean your only option is bankruptcy. And conversely, just because you have to file for bankruptcy doesn’t mean you’ve failed in any way. Rather, bankruptcy is an option that can help you regain financial stability and start fresh.

Small business bankruptcy

In August President Trump signed a law that significantly reforms Chapter 11 for individuals and small businesses. The law become effective on February 19, 2020.

When an individual or small business wanted or needed to restructure debt, there were two options. Chapter 13 was the preferred option, but it was not always available. It has a debt limit which can affect some debtors. It is also limited to individuals. If a corporation or LLC was owned by an individual or married couple we would treat it as a sole proprietorship. However, this approach had both tax ad and liability issues.

Bankruptcy can reinstate your driver’s license

Sometimes our country’s laws are well-meaning. When the department of motor vehicles suspends your license for things like unpaid tickets or fines, the intention is to incentivize you to pay your debt. However, there are several problems with this in some cases.

Suspending someone’s driver’s license over unpaid tickets and fines assumes that you’re choosing not to pay as a choice. Chances are that you know that you need to pay your fines but if it means choosing between buying groceries or paying for your speeding ticket. Many people like you would follow their survival instincts and ensure that they could eat before paying fines.

Estate planning tips for single people without kids 

If you don’t have children, and you don’t have a life partner, you may feel uncertain about what to do with your assets when you pass—or whom to designate as your decision maker if you become incapacitated. You may not have close family or friends you’d like to leave your estate too. 

Making an estate plan will give you control over the future of your assets. This post offers some tips to get started.

How does Chapter 7 bankruptcy work?

If you’re having difficulty with your finances, you’re not alone. Many people have trouble keeping their heads above water, and money issues can cause undue stress.

Sometimes the best option for handling your debt is by filing for bankruptcy. On average, over a million Americans file for bankruptcy each year. But when it comes to bankruptcy, the terms can be confusing, and it’s best to pick which course of action is right for your situation.

Why it's important not to procrastinate filing bankruptcy

For some of us, procrastination has been a constant throughout school, work, at-home responsibilities — everything. For others, it just happens on occasion — when we’re feeling really overwhelmed.

No matter which category you fall into, you’re probably procrastinating while reading this. If you need an extra push to finally start digging yourself out of financial ruin, here it is. Those who need to file for bankruptcy should do it now for these three reasons.

TIMING AND BANKRUPTCY

Frequently I get the question, when should I file my bankruptcy petition? Sometimes that is an easy question at other times it requires a little more thought.

THE CHAPTER 13 CHOICE

Once an individual or couple realize that bankruptcy is the only option to deal with their financial situation, they must then decide whether to choose Chapter 7 or Chapter 13. For most people, Chapter 7 is the preferred alternative. A Chapter 7 can generally be completed in roughly 4 months. By contrast a Chapter 13 normally will run a minimum of 36 months and could extend to 60 months. A Chapter 7 does not involve a payment plan and generally does not require the individual to surrender assets to trustee. By contrast, a Chapter 13 requires a regular payment to a trustee for the full term of the plan.

Office Location

The Law Office of David Carl Hill
2472 Bethel Road SE
Suite A
Port Orchard, WA 98366

Phone: 360-329-6223
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