Credit counseling is a compulsory part of bankruptcy and it must be completed in 180 days immediately preceding your bankruptcy petition. That 180 days is important. File for bankruptcy on the 181st day and your petition and the court may well reject your petition. Once you have completed your counseling, be sure to obtain a [...]
Debt in the United States is concentrated in two distinct areas – mortgage debt and credit card debt. These two debt areas account for 70% of all debt – if you include vehicle finance and medical debts, then you can lift that to almost 85% with tax being the next largest debt. Credit card debt [...]
Wherever you are these days there are offers that promise to reduce your debt, save you from bankruptcy, and perhaps even improve your credit score. Let me say from the outset, if you are not paying your creditors back in full, then there is little or no chance of improving your credit score. The only [...]
Filing for bankruptcy as a business can be a costly process. It is not uncommon for a Chapter 11 bankruptcy petition to reach costs of $50,000 or more – the filing fee is almost $1,000 on its own. You can, however, reduce these costs if you avoid some of the biggest mistakes made by businesses, [...]
Technically speaking, once you have decided to seek debt relief through a bankruptcy petition, you are not permitted to take on any further debt. Engaging an attorney to help you through the bankruptcy process will incur further debts. Of course, when undertaking any action through the court system, we are entitled to counsel, so bankruptcy [...]
Generally speaking, retirement plans such as 401K are fully protected when it comes to a bankruptcy petition. While many assets can be seized under a Chapter 7 petition, for example, the 401K remains untouched. However, for some people, that 401K protection can be a real trap. When money is tight and lenders reluctant to extend [...]
Bankruptcy provides a pathway for debtors to clear their debts and make a fresh start. There are times when a creditor is making claims that a debtor has refuted. These debts must be included in the schedule of debts that is submitted to the court. While the debtor may be disputing these debts, failing to [...]
Many people have the mistaken view that bankruptcy is designed to squeeze as much as possible from debtors and that creditors have all the rights. That view is far from what is day-to-day fact. Most creditors will tell you they have few rights and that thy have to accept what the court decides the debtor has [...]
A married couple have the choice of filing for bankruptcy either as an individual, or as a couple. However, it is rarely possible to file for bankruptcy as individuals at the same time – it doesn’t make sense either since you will incur double the costs associated with individual petitions yet only gain the same [...]
We live in a world where do-it-yourself or DIY is the ‘in thing’. Home buyers try to do a lot of the transfer work themselves, others try to undertake the complete sale or purchase without an agent. If you have some experience, then you can often get away with it. However, when it comes to [...]
While bankruptcy law is a Federal act, each state has introduced variations of their own. Exemptions are one area where there can be a marked difference from one state to the next, and some of these exemptions will rely on things like how long you have lived in that particular state. Other variations include changes [...]
There is a perception, and misconception, that debtors need to have high levels of debt to qualify for bankruptcy. In truth, although not generally in practice, if you have $1 of debt and no way to repay it, and your creditor is harassing you for repayments, then you would qualify for bankruptcy. I said it [...]
When faced with foreclosure, many debtors consider the option of filing bankruptcy. Whether foreclosure or bankruptcy is the best option will depend on a number of factors including what it is you hope to achieve. If you have decided your mortgage is no longer a viable option, then walking away and leaving it to the [...]
When filing for bankruptcy, the best piece of advice anyone can offer is to seek the services of a bankruptcy attorney. They will ensure your paperwork is filed on time and that every document required by the court is properly filled out and signed. You can help your cause by being prepared. When seeing a [...]
If you are filing for bankruptcy the last thing you want is to have your petition labeled abusive and thrown out of court. The term ‘abusive’ refers to ‘an abuse of law’ – in other words, you are trying to scam the system. Unfortunately, there are some legitimate bankruptcy filings that receive the abusive label [...]
While the economy is still a little wobbly, it is improving and people are now starting to find employment. Those that have been unemployed find that, although their finances are improving, the accumulated unpaid back debt is still causing real problems. As circumstances improve, you have a number of options. These include continuing to struggle [...]
Bankruptcy is a serious process that will disrupt your life. It will also have long term effects, especially when it comes to applying for credit. However, handled correctly, bankruptcy could help you to build a much better credit score. Going through a bankruptcy process affects several factors in your life. The major factor of course [...]
