One of the common causes of consumer bankruptcy is unmanageable credit card debt. Because credit card debt is typically an unsecured obligation, you can generally discharge credit card arrearages in Chapter 7 without returning items purchased. However, if a creditor (credit card company) can show that you engaged in fraud when using the credit … [Read more...]
Your Bankruptcy Options When Continuing a Business
May 17, 2019 by Leave a Comment
What's Best for You—Chapter 11 or Chapter 7? If you own a business that's struggling, but you know it's just a matter of time before things turn around, you can still use the bankruptcy process to your benefit. When you file a bankruptcy petition, you will immediately get the benefit of the automatic stay, which prohibits your creditors from … [Read more...]
Can You Dispose of Assets before You File a Bankruptcy Petition?
April 29, 2019 by Leave a Comment
Steps to Minimize Potential Legal Problems When you are facing financial challenges, a common strategy is often to sell assets you don't need, so that you can pay off creditors or meet your basis needs. If you subsequently file for bankruptcy protection, though, you may face questions from the bankruptcy court regarding the disposition of those … [Read more...]
What Happens to Jointly Owned Property When You Seek Protection in Bankruptcy?
April 22, 2019 by Leave a Comment
You have unmanageable debt and have concluded that the only way to move forward is file a personal bankruptcy petition. You may own property jointly with friends or other family members, including parents, children and others. Perhaps a family member co-signed for you or a parent added you to a bank account or deed as an estate planning tool. … [Read more...]
Are Your Retirement Assets Safe When You File for Bankruptcy Protection?
April 15, 2019 by Leave a Comment
You've worked hard to prepare for a secure retirement, faithfully making contributions to your IRA or to a 401(k). Then you experience health problems, or lose your job, and the bills become unmanageable. A personal bankruptcy filing may be the only way to get back on your feet again. If you file for bankruptcy, though, will you jeopardize your … [Read more...]
How Does a Bankruptcy Filing affect an Inheritance?
April 8, 2019 by Leave a Comment
Can You Potentially Lose an Inheritance if You Seek Protection in Bankruptcy? You've had difficulty meeting your financial responsibilities, and have successfully discharged debts through a Chapter 7 proceeding. After the termination of the bankruptcy proceeding, you learn that you are the beneficiary of the estate of a loved one. What are the … [Read more...]
Can You Discharge a Car Accident Verdict in Bankruptcy?
March 21, 2019 by Leave a Comment
It's not common that a private individual will have personal financial responsibility for damages suffered by another person in a motor vehicle accident. That's generally covered by automobile insurance. There are, however, isolated instances where you may be sued directly by another person, or by an insurance company, for losses incurred. Can you … [Read more...]
When Can You Discharge Tax Debts in Chapter 7?
March 5, 2019 by Leave a Comment
Can You Lose Individual Retirement Account Assets in a Bankruptcy? In a Chapter 7 bankruptcy filing, you can typically discharge certain debts in exchange of allowing some of your assets to be placed in the bankruptcy estate, where they may be sold to satisfy creditors. Among the debts typically identified as non-dischargeable are family law … [Read more...]
Support Obligations and Bankruptcy—Your Options
February 20, 2019 by Leave a Comment
Managing Child Support and Spousal Support Debt in Bankruptcy If you're struggling to keep your head above water financially, and a big part of your monthly outlay is for child or spousal support, you may have questions about whether you can use the bankruptcy laws to get some relief. Here's an overview of your options. Chapter 7 May Not Be Used … [Read more...]
Student Loan Arrearages—Chapter 7 or Chapter 13?
February 12, 2019 by Leave a Comment
Suppose that you're struggling to meet your obligations and the bulk of your debt is tied to student loan repayments. You're not alone. Statistics indicate that more than 44 million debtors owe over $1.5 trillion in student loan debt, and that that average total amount of debt for graduates of the class of 2018 was $29,800, with many former … [Read more...]
