A legally married couple have considerable rights when it comes to bankruptcy, and this includes whether or not one of the couple files for bankruptcy or they file a joint petition. This is a complex area of law and while we can discuss the general pros and cons you should talk to a bankruptcy attorney [...]
There are a lot of people who are struggling with debt and when they finally take that step to starting the bankruptcy process, they are in dire trouble. The first question that many bankruptcy lawyers ask their new clients is, Why? Not “why are you filing for bankruptcy?” That first question is “why have you [...]
Bankruptcy has been designed to do one thing – enable those that are honestly unable to service their debts, make a new life. While many feel the bankruptcy process is cumbersome, and often unfair to debtors, there are just as many who feel that the bankruptcy process is unfair to creditors. In fairness to the [...]
Filing for bankruptcy can be a stressful time for anyone and the last thing you need is to worry about your current employment. This is particularly true if you have filed a Chapter 13 bankruptcy where you have entered into a payment agreement. These agreements continue for a minimum of three years and failure to [...]
There are times when the need for bankruptcy is such that filing for any Chapter is better than nothing at all. This is often the situation when a debtor requires the protection of the stay that comes into place once a bankruptcy petition has been filed. This prevents creditors from taking any further action and [...]
While bankruptcy provides a lot of protection for debtors, it provides very little protection for any co-signers, unless of course they file for bankruptcy as well. Under the provisions for a Chapter 7 bankruptcy, the automatic stay doesn’t even protect co-signers. A creditor is free to chase debts from that co-signer the moment a Chapter [...]
The thought of bankruptcy often sends shivers of terror through people. It shouldn’t. Bankruptcy is there to assist people who, often through no fault of their own, find themselves in financial difficulties. For some, the fear of bankruptcy is such that they will do anything to avoid it, and by doing so, often find themselves [...]
While bankruptcy is designed to help those who are struggling with debt, sometimes the assistance offered goes further than a debtor really requires, or wants. Cars are a good example of this. Normally, you can surrender the car and any outstanding debt is wiped through the bankruptcy process. There are circumstances where you may not [...]
If you are facing financial difficulties, one of the most important tasks a debtor can do is to prioritize their debts. This means paying THE most important debts first, and allocating anything that is left to other debts. This is essentially what occurs in a Chapter 13 petition for bankruptcy. By prioritizing your debts, you [...]
There are many people who visit a bankruptcy lawyer looking to escape their financial difficulties only to find that bankruptcy may not resolve anything. If you have consumer debt that is not secured in any way, then bankruptcy will help. However, there are many debts that are not going to be discharged through bankruptcy and [...]
One question that many debtors ask is what effect, if any, bankruptcy has on a foreclosure or a short sale. This is a tricky question as there are several factors to consider – the first being the state in which you reside. Some states allow a foreclosure during bankruptcy with any shortfall in the mortgage [...]
Bankruptcy is a serious option that has many ramifications. It will affect your credit score and it can affect your employment options in the future, especially if your working area is the financial sector. Before opting for bankruptcy, you need to consider your current situation to be sure that this is the right option. Some [...]
There are two leading reasons why people seek help through a bankruptcy petition – they have too much credit card debt or their home is underwater and they are struggling to meet their mortgage repayments. Bankruptcy under normal circumstances should be a final step rather than a first step. There are options available, particularly for [...]
While you may feel that bankruptcy is your only way out, this is not always the case. There are often alternatives that not only help to free you from your debts, but do so without the hit that your credit score receives when you’re discharged from bankruptcy. Even though you feel under pressure to act, [...]
Can you file for bankruptcy again if you find yourself in trouble once more? There is no limit to the number of times you can file for bankruptcy. However, there is a limit to the relief you may receive following second or subsequent bankruptcy filings. In some cases, you will gain no relief at all [...]
Does anyone intentionally ‘waste’ an asset? You would be surprised how many people do ‘waste’ assets prior to filing for bankruptcy. Of course, the term ‘waste’ means many things to many people. A good example of ‘wasting’ an asset is where an individual withdraws all their cash from their bank account and hits the tables [...]
There are many debts that are almost impossible to discharge through bankruptcy – I say almost because the Bankruptcy Act does allow the discharge of some debts if the petitioner can demonstrate ‘undue hardship’. However, this is very difficult to prove and only a tiny percentage of petitioners succeed with this approach. Unfortunately, while the [...]
When filing for a Chapter 13 bankruptcy a debtor must include a payment plan that they are willing to commit to for at least three years. This payment plan must equate to what the court would estimate as their ‘disposable’ income. This is determined by calculating the debtor’s total income then subtracting a range of [...]
Bankruptcy is a process that is designed to give debtors who are financially in trouble a little breathing space and relief from the pressure of those debts. Part of the bankruptcy process is a legal term known as a ‘stay’. A stay in simple terms is an order to all creditors to stop any actions [...]
Sounds like an easy situation. You file for bankruptcy, your circumstances change so you ask the court to dismiss your petition so you can get on with your life. No problems, right? Wrong – it can create big problems depending on which Chapter you have filed under. Perhaps “big problems” is the wrong phrase, however, [...]
There are times when laws seem to create an oxymoron and bankruptcy is a good example of this. The general principle behind bankruptcy is that you don’t have the funds to service your debts. Yet to file for bankruptcy, you will have to pay around $300 in filing fees, and anywhere from $1000 upwards for [...]
Filing for bankruptcy can be a very emotional time, even more so if you are filing under a Chapter 7 petition and you know you are going to lose some of your hard earned possessions. One emotion that should never become a factor is that of guilt. For most people, bankruptcy has not been caused [...]
There are a lot of factors that have to be taken into consideration before filing for bankruptcy, and one of the most important is deciding on what date you will file. I know this may sound strange to many, however, the date you file becomes the key point in every other aspect of the bankruptcy [...]
Lawyers are renown for legal jargon – jargon that means a lot to them but often leaves lay people scratching their head. A ‘super discharge’ is one of those terms that a client may hear and wonder what their lawyer is talking about. Let’s see if we can clear the air a little. Under bankruptcy [...]
Filing for bankruptcy is meant to protect debtors who are struggling with too much debt by allowing them to discharge those debts and effectively start their lives all over. From some debtors, a home mortgage can be a huge burden that is made worse by the fact the home’s value is now much less than [...]
Bankruptcy can be very effective when it comes to clearing unsecured debts. However, bankruptcy will not clear secured debts and your creditors will still be able to seize any assets that you have used as security for those debts. The two most obvious secured debts are car loans and home mortgages. It is possible to [...]
Bankruptcy is covered under a federal bankruptcy act so you would imagine that each state would treat bankruptcy situations exactly the same. Unfortunately, it doesn’t work that way. The federal bankruptcy act allows states to modify the act to suit their local conditions. The only proviso is that it mustn’t reduce the entitlements allowable under [...]
One of the fears that some debtors have is the loss of assets when they file for bankruptcy. The first point that should be made is that assets are only seized when a petitioners files under a Chapter 7 bankruptcy. The second point to make note of is that, through exemptions, many (if not all) [...]
There are two major reasons why individuals and couples file for personal bankruptcy – too much credit card debt and the threat of foreclosure. Sometimes it’s a combination (often, actually), and bankruptcy offers debtors the opportunity to cancel out their credit cards and to channel their funds into their mortgage. Waiting for that foreclosure notice [...]
Being underwater in debt is very common now. There are still a lot of homes under threat of foreclosure, and tens of thousands filing for bankruptcy each week due mainly to credit card debt. One of the biggest problems for those under threat of foreclosure is the slow housing market, and the fact that many [...]
