There are some sectors of our society that have become so reliant on payday loans, it’s almost like addiction. It’s arguable as to whether or not payday loans provide a useful service. They are high interest loans taken over short periods of time and they tend to place more pressure on finances rather than relieving [...]
There are a lot of government (both state and federal) programs around at present, most directed towards those facing foreclosure. Can these programs save you from bankruptcy? In short, the answer has to be no since they are designed to help you deal with your mortgage. However, if you are smart, and can take advantage [...]
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 [...]
Almost every asset you own depreciates with time. There are some exceptions, and in a normal economy a home along with investments items could actually appreciate. However, cars, washing machines, refrigerators and so on all lose value the moment they leave the seller, and they continue to lose value, often quite rapidly. This often leaves [...]
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, [...]
The Bankruptcy Act is one of the most complex pieces of legislation that affects our everyday lives. Like all things legal, it comes with a special language all of its own. The term ‘insider’ is one that debtors may hear about, either from their lawyer or from the bankruptcy trustee. So what is an ‘insider’ [...]
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 [...]
Parking fines are the bane of many a driver and you would be surprised at how much is owed annually in outstanding parking fines. When filing for bankruptcy, one of the more common questions relates to parking fines and whether or not they too can be discharged with other unsecured debts. While the question may [...]
Here is a staggering statistic for you – almost 90% of all personal Chapter 7 bankruptcies are filed as “no asset” petitions. A ‘no asset’ petition is just that, it states that the debtor (the person filing the petition) has no assets of worth that could be seized and sold to pay part of their [...]
When you file for a Chapter 7 bankruptcy, you will need to list all of your assets at the time you file your petition. Many of those assets may fit into a class known as ‘exempt assets’ – these are the assets that are exempt from seizure and sale. Each state has a different way [...]
There are a lot of myths in society concerning bankruptcy, many of them started by creditors. You will often hear someone say that ‘medical bills can never be discharged through bankruptcy’ or, more common of late, that ‘your credit card debts cannot be discharged through bankruptcy’. The latter, in particular, is often thrown up by [...]
Bankruptcy is a legal process designed to help debtors recover from too much debt. While the bankruptcy process is designed in such a way that any excess assets (including cash) is diverted to creditors, there is one area where bankrupts do get a special advantage. That area is related to retirement funds. If a bankrupt [...]
Divorce and bankruptcy can be an ugly mess. In fact, if the two parties are at war with each other, and that appears to be in the majority of cases, then bankruptcy can become a real nightmare for one half of the partnership. In most marriages, debts are cosigned. This means that both parties are [...]
There are many people that rely on a tax refund to pay for certain bills. Once you file for bankruptcy, your financial affairs are no longer your own, and this includes any state or federal tax refunds. Since the majority of bankruptcy petitions come from low to middle income earners, most will be expecting a [...]
If you are working but struggling to maintain your debts, then a Chapter 13 petition for bankruptcy offers a complex but neat solution to your debt problems. It takes on some of the concepts of debt consolidation, the major difference being you won’t normally be repaying the total outstanding debts. Under a Chapter 13 petition, [...]
A lawyer is a lawyer and it could be argued they are prepared to handle any case if there is a dollar in it for themselves. In practice, lawyers prefer to specialize in areas where they feel the most comfort. One misconception of a bankruptcy lawyer is that they only handle bankruptcies. This is far [...]
If you are considering filing for bankruptcy and time is important, then you need to contact a bankruptcy lawyer as early as possible in the process. You should also ensure you undertake your pre-bankruptcy credit counseling as soon as possible. There is a lot of paperwork that has to be prepared before a petition can [...]
Bankruptcy is not as simple as some people may think. Hiring a good bankruptcy lawyer can make a significant difference to the outcome of your petition. It can also make a significant difference to what assets you finish up keeping if you file through a Chapter 7 petition. Bankruptcy lawyers are not exactly cheap either, [...]
It may seem like an oxymoron, but undertaking a bankruptcy petition can be an expensive process. For some, their financial difficulties can make seeking legal assistance almost impossible. There are many steps you can take that can help to reduce the costs of your bankruptcy petition. Free Legal Advice – there are many lawyers that [...]
Once you have decided to file for bankruptcy, you have three choices. You can do all the work yourself, you can engage a bankruptcy law firm, or you can engage a bankruptcy petition preparer. The direction you take will depend on how much knowledge you have in the requirements of bankruptcy. If you have a [...]
One of the benefits of seeking advice from a bankruptcy lawyer is that they will go through each debt with a fine tooth comb. There are a number of reasons for this. They are looking at the legal obligations such as legal costs in any legal action, early termination fees (if any), and whether or [...]
If you’re contemplating filing for bankruptcy, start by removing the do-it-yourself option from the list. Your creditors will hire lawyers to go over every scrap of paper you file and should you miss dotting an I or crossing a T, they will jump all over your petition in an attempt to have their debt excluded. [...]
When filing for bankruptcy you will need to list every debt you have, not just the ones you can remember. This can be difficult, especially if you have defaulted loans that are a year or so old and the agency has stopped harassing you. Just because they stop harassing you doesn’t mean you no longer [...]
Planning for bankruptcy has two connotations – one, you are planning a fraudulent means of obtaining goods by overspending then filing for bankruptcy; and two, finding yourself overburdened by debt and considering bankruptcy. In the first instance, don’t bother. The trustee together with the creditors will soon dig out fraudulent bankruptcy cases. In the second [...]
Imagine this scenario – a successful person loses their job and with it their income. Because of age, or gender perhaps, they cannot get another job. The debts mount, the creditors send constant letters of demand, perhaps even arriving on the doorstep to demand payment. Sound familiar? Are you at that place in your life? [...]
Some people seem to be under the impression that once you file for bankruptcy, it’s simply a matter of waiting a set period of time and your debts are cleared. In many cases, that’s the process for a Chapter 7 filing. However, a Chapter 13 bankruptcy petition is a little more involved than that. The [...]
You may wonder what effect bankruptcy may have on your retirement savings. The good news is, very little. However, it does depend on where your retirement savings are. For example, if you have been putting money aside in a simple bank account or investing through shares then these savings may well be at risk. If [...]
A previous post – Can You Include Credit Card Debts In Your Petition? – dealt with some of the issues relating to credit cards and bankruptcy. Today’s post looks purely at discharging a credit card as opposed to seeking a longer payment period. Totally discharging a credit card debt is generally undertaken using a Chapter [...]
