Monthly Archives: March 2025
What is the Success Rate of Chapter 13?
If debtors make the proper effort, Chapter 13’s success rate is 100 percent. Everyone who puts forth the proper effort, as outlined below, gets a fresh start. In a successful Chapter 13, distressed debtors erase secured debt delinquency, like past-due home mortgage payments. This process also discharges most unsecured debts, like credit card debts…. Read More »
What is the 2-3-240 Rule in Bankruptcy?
This rule determines the dischargeability of back taxes in a bankruptcy matter. Back taxes are priority unsecured debts which are only dischargeable in limited situations. Student loans and most FSOs (family support obligations, such as child support) are also priority unsecured debts. “Discharge” means the judge eliminates the legal requirement to pay the debt…. Read More »
