Monthly Archives: April 2018

Do people ever read your bankruptcy blog? (100,000 views!!!)

I ask myself this question more than I actually hear it from clients, so I think it’s more of a crazy- person-talking-to-himself-internal-monologue kind of question.

So to answer that internal voice of debt, “Yes, apparently people do read this blog.”

The attached picture is not a good one, but it is a cell phone capture of my home computer. Last night I was wondering if the view count had hit 100,000.  Unfortunately, when I accessed the blog, I was visitor 100,001, so I missed that fantastic 100,000th reader.  I took this picture, sent it to my friends and family, and then walked around feeling pretty awesome for the rest of the evening.  To be honest, it’s a feeling of validation, knowing that people actually read the blog.

I posted my first entry in December 2013.  I’ll admit that I did it just to improve my rankings on google with raw organic content.  However, I soon found that if I wrote more detailed articles on more specific questions, then I could use them again and again.   For example, I get asked questions on mortgage reaffirmations every week, and now I can simply cut and paste a couple of links from my blog that hopefully make sense to my clients.

It’s also really fun to put the questions together.  I try to answer them in my speaking voice.  There are still spelling and grammatical errors, and I’m sorry.  Apparently my speaking voice throws those in as well.

As for the “artwork,” I love making the pictures for each topic.  I know that the pictures are not high quality;  I’ll even admit that I have no artistic training.  In my defense, I’m using Microsoft Paint, but even if I had a better program, the artwork would be the same.  Hopefully you can get the gist of the action in the scene.

So for everyone whose accessed this blog, thank you.  Every time someone searches for an answer on my blog and actually reads it, I feel great.

What are the median income figures for bankruptcy in Utah (April 2018)?

Basically, if you are over, then you are a chapter 13.  If you are under, then you are a chapter 7.    

Now remember that these numbers can be adjusted by child support payments (received or made), larger mortgages, huge tax debt, etc.  It is a gross overgeneralization to say that if you are over that figure then you MUST be a chapter 13, but this is the baseline we start with.  That being said, here are the current figures for Salt Lake County that we use on our Form 22C* (6 month average of current monthly income and disposable income):

Single:      $59,002

Married:    $64,832

Married with 1 child:   $76,066

Married with 2 children:  $83,537

Married with 3 children:  $91,937

Married with 4 children:  $100,337

(If you can’t see the pattern yet, each child we add bumps up your median income figure by $8,400).

As I said above, being over doesn’t necessary mean that you’ll be in a repayment plan (like a chapter 13), but this gives us a nice baseline.

*  (Notice that I called it “Form 22C” .  That is because I’m old.  The current form is called Form 122A Current Monthly Income and Means Test for Chapter 7 or Form 122B or 122C).

What happens if you are in a car accident before repossession (or have a damaged car that is repossessed)?

Generally, you wipe out the debt.

Every week or so I look at the “insights” on my blog to see what searches people run.  Here is today’s entry:  

 

If you look at the searches, you can see that somebody was on my blog today who apparently had a financed vehicle, damaged  in an accident, that was going to be or already was repossessed.  I’m assuming that they’re worried about being sued by the bank.  If they don’t file bankruptcy, that’s a real possibility.  If they do file bankruptcy, then they should be fine.

Basically, you can discharge that debt and turn over the vehicle, no matter what the condition.  Now you should have had it fully insured, and if you receive an insurance settlement, you may have to turn over those monies to the bank who financed your car.

However, if you let your insurance lapse, then there’s no insurance settlement coming.  In theory, the bank could sue you for the damage to the car, but that gets wiped out by the bankruptcy as well.

I wrote about this 3.5 years back.  It’s still relevant:

What happens after a repossession if my car is in bad shape with body damage?