Short Answer: There’s still some hope, but hold on tight.

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In this continuing declining economy, our office is approached frequently by the small business owner. The owners of America’s small businesses are under the same ‘big’ company financial pressures. Oftentimes the pressure for the small businessman is higher, if that can be believed, due to the nature of the small business. A large corporation has a fiduciary duty to it’s investors, but in the end, if the big corporation fails, the investors lose, not the principals of the big corporation. At least, not unless they are heavily invested in the failing concern.

In a word, NO. A common misconception among consumers is that a chapter 13 bankruptcy requires payment in full of ALL debts. To the contrary, unsecured debts are often slashed dramatically with credit card debt frequently paid out at less than 10%. Chapter 13 bankruptcy involves filing a repayment plan with the court, the extent to which debts are repaid is a function of your disposable income and the value of your assets. Exactly how is a chapter 13 plan payment calculated?

[12/29/09 Update:  Be sure to read Tony Prada's comment at the end of the post. His initial thought, he wrote, was to move on to the next blog but once he started, he "became engulfed with the memoirs" and his "normal 5 minute stop at the blog morphed into 3 hours."  Tony shared with us some very important "takeaway" messages that I commend to you.]

Between 2003 and 2009, the number of fraud cases investigated by the U.S. Justice Department saw a steep decline—including a 44% drop in bankruptcy fraud cases, according to an article in USA Today.
Bankruptcy fraud, corporate fraud and securities fraud cases all received less attention from Federal prosecutors, according to Justice Department documents, with corporate fraud cases falling 55%, even as our country fell into economic crisis.

Can you keep two houses if you file for Chapter 13 Bankruptcy?
Like so many questions in bankruptcy, the answer is:  It depends.
When most people file a Chapter 13 bankruptcy they are generally doing so to either save a house from foreclosure, or because the person is an “over means” debtor which requires them to file a Chapter 13 bankruptcy [...]

A discharge in bankruptcy “wipes the slate clean” by legally relieving the debtor off all obligation to pay certain debts. Remember that if you wish to retain property like a car or home, payments must be made after bankruptcy. The bankrupty discharge is mosy effective at eliminating credit card debt, medical bills and old tax obligations.

You’ve recently moved, which state’s exemptions apply?