Does your spouse own a small business that's struggling? Has he or she decided to seek bankruptcy protection to either reorganize or liquidate the debt of the business? What if you have a good job or significant assets in your name? Can your spouse's creditors attempt to collect those debts from you? The answer, as with most things, is that "it … [Read more...]
Avoiding Potential Problems in a Bankruptcy Proceeding
April 27, 2018 by Leave a Comment
The U.S. bankruptcy laws were enacted to give debtors a second chance, to allow you to put financial problems behind you and start over again. Under Chapter 7, you have the right to permanently discharge certain debts in exchange for the sale of non-exempt assets. It's important to understand, though, that those rights are not absolute. If you've … [Read more...]
Using Bankruptcy to Avoid Repossession of Your Car
April 18, 2018 by Leave a Comment
If you've fallen behind on your car payments, you may have received notices or even threats of repossession from the lender. You may live in constant fear that your car will be gone when you come out of your house or leave work. There's a way to eliminate the stress and anxiety that come with fears of losing your car—with a personal bankruptcy … [Read more...]
The Vehicle Cramdown Process in Bankruptcy
April 10, 2018 by Leave a Comment
If you're struggling to meet your financial obligations and have decided that a personal bankruptcy filing is your best option, you want, if possible, to structure the bankruptcy in such a way that you get to keep your car, so that you can get to and from work. There's a special procedure, known as a "cramdown," that allows you to keep your vehicle … [Read more...]
How the Means Test in a Chapter 7 Bankruptcy Work—Part One
April 4, 2018 by Leave a Comment
It's been a requirement under the federal bankruptcy laws since 2005, but most people still don't have much understanding of what the "means test" is and how it works. When you choose to seek protection in a bankruptcy filing, you must now qualify to discharge debts in a Chapter 7 proceeding, demonstrating to the bankruptcy court that you lack the … [Read more...]
Why You Don’t Want to Handle Your Own Bankruptcy Proceeding
March 27, 2018 by Leave a Comment
If you're struggling to pay your bills and have determined that a bankruptcy filing is your best way forward, there can be a temptation to try to handle all the legal documentation and filings on your own, so that you don't have to pay attorney fees. That's almost always the wrong decision, and for a variety of good reasons: The bankruptcy … [Read more...]
Court Ruling Helps Debtors with Medical Bills
March 22, 2018 by Leave a Comment
If you've incurred significant medical bills and it's led you to consider or file for protection under the bankruptcy laws, you're not alone. According to a study conducted by Harvard University, nearly two-thirds of people who filed for personal bankruptcy cited medical bills as a factor in their financial challenges. It's estimated that as many … [Read more...]
Rebuilding Your Credit Score after You’ve Filed for Bankruptcy Protection
March 12, 2018 by Leave a Comment
When you are struggling to meet your financial obligations, you may resist the decision to seek protection under the federal bankruptcy laws, fearing that your credit will be permanently ruined. While there's no question that your credit rating will temporarily decline, there is credit life after bankruptcy. It is possible to rebuild your credit … [Read more...]
Do I Qualify for Protection under Chapter 13?
March 5, 2018 by Leave a Comment
When the bankruptcy laws changed in 2005, it became more difficult to file for liquidation under Chapter 7. You must now submit to means test to determine whether you have the ability to repay your creditors over a 3-5 year period. If so, then your only recourse for a personal bankruptcy is under Chapter 13. But that doesn't mean that you … [Read more...]
The Federal Bankruptcy Exemptions
February 6, 2018 by Leave a Comment
When you seek protection under Chapter 7 of the Bankruptcy Code (assuming you have met the requirements of the "means test"), you can permanently discharge certain debts in exchange for allowing the bankruptcy trustee to sell some of your assets and give the proceeds to those creditors. However, you don't have to transfer everything to the … [Read more...]
