Bankruptcy FAQ
WHAT IS CHAPTER 7 BANKRUPTCY?
Chapter 7 bankruptcy is a filing in which the individual filing for bankruptcy has very few assets and is primarily delinquent in unsecured debt. Unsecured debt is debt in which the borrower did not put up any initial collateral in exchange for the credit.
WHAT IS CHAPTER 13 BANKRUPTCY?
Chapter 13 bankruptcy is often referred to as the Wage Earner’s Bankruptcy. Unlike Chapter 7, Chapter 13 bankruptcy gives the debtor the opportunity to pay off all, or parts, of their debt over time rather than liquidating their property or facing steep penalties. This chapter of bankruptcy is for individuals that have a consistent income, however, they need a little more time to pay off their debts than the creditors are allowing. In this chapter of bankruptcy, you can pay the debt off over a course of 3 to 5 years.
WHAT IS CHAPTER 11 BANKRUPTCY?
Chapter 11 bankruptcy cases are typically filed by corporations, limited liability companies, and business partnerships. Individuals that are in substantial debt and have too much income to qualify for Chapter 7 or Chapter 13 bankruptcy may also apply for Chapter 11 as well.
WHAT TO KNOW ABOUT STUDENT LOAN DEBT AND BANKRUPTCY
There probably isn’t a law student alive who has not, at least for a brief moment, wondered whether they could file for bankruptcy to get out of their student loan debt. Most law school graduates leave school with an albatross of debt — common figures tossed around at the bar exceed six figures. And while everyone’s mental image of a lawyer is a rich guy in a pinstripe suit with a Porsche, most lawyers don’t make anywhere near that money, especially at the beginning of their careers. And yet, despite being very well educated and likely able to file a bankruptcy petition on their own, almost none of them do.
DOES BANKRUPTCY CLEAR TAX DEBT?
It is no surprise then that discharging tax debt is not exactly simple or easy. And while it is far from impossible (especially if it is older federal income tax debt), it is not as simple as discharging a past due credit card bill or debt from a business that went belly up. There are a number of rules that determine whether your income tax debt can be discharged, as well as strict timing that must be followed.
WHAT ARE FINANCIAL RELIEF AND REPAIR OPTIONS AVAILABLE TO ME?
Many Americans face steep challenges paying off their debt. Fortunately, there are many financial relief and repair options available to help do this. These include debt settlement, credit repair, loan consolidation, and bankruptcy.
WHAT IS THE BANKRUPTCY LIQUIDATION PROCESS LIKE?
If you are contemplating whether to file for bankruptcy, you may be concerned about having all of your personal possessions "liquidated" during the proceedings. Do not fret. There are specific rules and regulations governing which assets are eligible for bankruptcy liquidation and which assets are exempt. You may be surprised to learn that there are numerous assets and personal possessions that are protected during a bankruptcy proceeding.
CAN STUDENT LOAN DEBT BE DISCHARGED WITH A BANKRUPTCY?
If you are struggling with the burden of paying down your student loan debt, you are not alone. Millions of people are carrying tens of thousands of dollars in outstanding loan debt from their educational pursuits. If you are struggling financially, you may wind up asking yourself, “Can student loan debt be discharged in bankruptcy?” Here is the answer – student loan debt is extremely difficult, but not impossible, to have discharged in a bankruptcy proceeding. The reason discharge of student loan debt is so difficult is the governing standard used by courts across the country – you need to provide evidence that making payments towards your student loan debt “will impose an undue hardship on you and your dependents.”
SHOULD I PAY OFF MY CHAPTER 13 BANKRUPTCY EARLY?
It is understandable why someone in Chapter 13 bankruptcy would want to speed through the repayment plan–if they can–and move past this experience. However, it is important to consider that once you are in a repayment plan, if your financial situation improves and you show that you can pay more faster, then your creditors might rescind their debt forgiveness and increase the debt owed to them, thus increasing your monthly payments.
HOW LONG DOES IT TAKE TO FILE FOR CHAPTER 7 BANKRUPTCY?
If you are struggling financially and unable to make progress in paying down your debts, you may want to consider filing for Chapter 7 bankruptcy. It is a legal option that has helped many people clear their debt and get back on their feet financially. If you are curious about this option, you may be asking yourself, “how long does it take to file for Chapter 7 bankruptcy?”
WHAT DOCUMENTS DO YOU NEED WHEN YOU FILE FOR BANKRUPTCY?
Once you have made the decision to file for bankruptcy, getting the required documentation in order can be overwhelming. There are several questions you will be asked when filling out your bankruptcy paperwork, and you will be asked to disclose ample amounts of information related to your financial positioning. Whether you are filing a Chapter 7 bankruptcy or have a Chapter 13 matter, the documentation is the same. When going through bankruptcy, you have to provide the following documents to the trustee and reveal additional information when completing the bankruptcy paperwork. This article will give you an overview of the documents that you will need when filing for bankruptcy.
DOES A BANKRUPTCY AUTOMATIC STAY PROTECT ME FROM CREDITORS?
When a person files for bankruptcy, the court has a motive to provide an equal distribution among creditors that are similarly situated. For this reason, there is a procedure to protect the debtor from the pillaging of creditors upon the initial filing for bankruptcy—the protection granted is an automatic stay and takes effect immediately.
NEW BANKRUPTCY FORMS REQUIRED UNDER THE 2020 CARES ACT
Over the past few months, you may have heard in the news about the CARES Act (Coronavirus Aid, Relief, and Economic Security Act), which has resulted in items like the national stimulus checks, expanded unemployment insurance and the founding of the Coronavirus Relief Fund, amongst many other things. One major change that has come with the 2020 CARES Act, is a change to the official forms that are required to be filled out when filing for bankruptcy. While not every bankruptcy form has been changed, there are 5 that have been affected under the new 2020 CARES Act.
CAN MY STIMULUS CHECK BE GARNISHED?
If you were hoping to get a $1,400 stimulus check from the recently enacted American Rescue Plan Act of 2021, but have unpaid debts, you need to temper your expectations. Why? Because it has come to light that creditors can garnish stimulus checks to recover on unpaid debts.
WHAT HAPPENS TO YOUR TAX REFUND IN A BANKRUPTCY?
When someone decides to file for Chapter 7 bankruptcy, they may be curious to know whether they can retain the tax refund or if the expected refund will be diverted during bankruptcy to pay your creditors. Unfortunately, there is no single correct answer. In reality, the answer will depend on your unique circumstances.
CAN I GET A MORTGAGE AFTER CHAPTER 7 BANKRUPTCY?
If you go through Chapter 7 bankruptcy proceedings, a common question that arises is whether you are still eligible to apply for, and obtain, a mortgage. Here is the answer - yes, you can still qualify for a mortgage after a Chapter 7 bankruptcy. Though, it is important to understand that each mortgage lender has its own unique requirements and waiting periods for mortgage applicants with a bankruptcy filing on their record.
WHAT SHOULD I CONSIDER WHEN FILING FOR BANKRUPTCY DURING A DIVORCE?
Bankruptcy and divorce can go hand in hand. Stress-related to mounting debt creates tension among the married couple, which in turn can put a strain on the relationship. Next thing you know, divorce is a real possibility.
So it’s not uncommon to consider filing for bankruptcy during a divorce. However, entering into a bankruptcy proceeding while at the same time divorcing can create additional issues you need to be aware of.
The specifics depend upon whether you’re considering a Chapter 7 or Chapter 13 bankruptcy.
WILL MY EMPLOYER FIND OUT ABOUT MY BANKRUPTCY?
Usually, your employer will not find out about your bankruptcy. However, there are a few cases where they may discover or be informed of it. These include being in the public record, managing wage garnishments, creditor listings, and Chapter 13 payroll deduction orders.
HOW SOON CAN I APPLY FOR CREDIT AFTER A BANKRUPTCY DISCHARGE?
After your debt is discharged, there’s generally no waiting period to apply for a credit card. However, that does not mean your application will be accepted, because bankruptcy has a lasting effect on your credit score.
HOW LONG DOES A BANKRUPTCY STAY ON CREDIT REPORTS?
One of the drawbacks is that bankruptcy is included in credit reports. The exact length a bankruptcy stays on credit reports depends on whether the individual filed a Chapter 7 or Chapter 13 bankruptcy.
WHAT ARE THE ADVANTAGES OF FILING BANKRUPTCY?
There are a lot of benefits that come from filing bankruptcy, and these benefits could mean the difference between struggling financially while dodging debt collectors for the next decade or more of your life and building a firm financial future with better credit, better opportunities, and an easier time providing for your family.
WHAT IS THE DOWNSIDE OF FILING FOR BANKRUPTCY?
While bankruptcy certainly has its benefits, there are some significant downsides to this drastic measure that should be considered before filing. A Chapter 13 filing, which makes up about a third of all filings, means you’ll still pay much of the debt back. And for the majority of filers – the Chapter 7s who walk away from much of the debt – there are still major downsides.
CHAPTER 7 VS 13 BANKRUPTCY
Nothing can be further from the truth. Bankruptcy in the United States generally takes one of two forms for individuals (not businesses): a Chapter 7 debt elimination filing or a Chapter 13 reorganization filing that allows the consumer to pay back much of what she owes.
WHAT IS THE BANKRUPTCY MEANS TEST?
Bankruptcy is certainly one solution out of this common situation. You may have even had friends or colleagues who have whispered to you about their own bankruptcy filings over a cup of coffee, giving you hope for a debt-free path forward. But before you rush to file, you need to know about the most intimidating part of the process: the Means Test.
WHAT SHOULD I KNOW ABOUT DEBT COLLECTORS?
Most small businesses do not want to get into debt collection because of the incredible array of laws and regulations that govern collections. They will typically sell your debt to a third-party collector. The same goes for government agencies, such as parking ticket collections. Larger businesses, like credit card companies, may have a debt collection unit, but when they strike out on collecting, they will typically sell it off to a third party as well.
DOES FILING BANKRUPTCY STOP FORECLOSURE?
To keep it short and sweet: yes, bankruptcy can stop a foreclosure, at least temporarily. Immediately upon the filing of bankruptcy, an automatic foreclosure stay is instituted, along with the stay on the collection of all other debts. This means all calls, letters, and debt collection efforts with regards to the foreclosure must halt.
WHEN SHOULD YOU FILE BANKRUPTCY?
A wise man once said that there is never a right time to say goodbye. That’s true for someone that you love, but absolutely not true for your unsecured debt. In fact, it may seem like the time is perfect — right now — to stop debt collectors in their tracks and clear out all of the debt. The time is now to give you a fresh start.
But wait: before you rush to file, are there any considerations that may make this the wrong time to file for bankruptcy and clear your debt?
DOES BANKRUPTCY STOP FORECLOSURE?
Home is your rock - your security. It's no wonder that for many people, one of the biggest concerns with filing bankruptcy is about foreclosure and saving their home. Many have received threatening letters and phone calls from their mortgage lender and are terrified of the prospect of losing home.
If you are facing foreclosure, you may have wondered (or others may have suggested) using bankruptcy as a means to stop foreclosure in its tracks. Does it work? Does filing bankruptcy stop a foreclosure?
WHAT YOU NEED TO KNOW ABOUT BANKRUPTCY & FORECLOSURE SCAMS
Are you in danger of losing your house? “Our consultants can save your home for a low fee!”
Struggling to keep up with your monthly bills? Is your credit score lower than my self-esteem? “Our credit counseling can teach you the tricks and hacks that help you take control of your finances and resurrect your credit, allowing you to get the same opportunities as all of those rich upper class people you have been envious of your whole life. Go from gas card to platinum card!”
Does it sound too good to be true? That’s because it is. Where there is debt, there will be piranhas trying to feast on the flesh of poor victims who are already struggling to keep their heads above water. Not only are shameless debt collectors trying to squeeze every penny out of you that they can, but there are predators pretending to be saviors promising you the world, only to deliver heartache in the end.
BANKRUPTCY STUDENT LOAN FORGIVENESS
Is anybody actually paying their student loan debt right now? Anybody?
While the pandemic raged on, two presidents pressed pause on student loan payments and interest accrual. When that happened, pretty much everyone completely stopped paying their student loans. After all, why would you make voluntary payments on a debt that incurs no interest and demands no minimum payments?
And every few months, our current president extends the forbearance. Every other day, there are conversations about partial loan forgiveness, mass loan forgiveness, and tuition reform to get us out of this mess in the future. Will it be $10,000 in forgiveness? Will there be income caps? Are they playing out the anticipation until right before the midterm elections?
WHAT ARE UNSECURED DEBTS?
I’m hungry. But I have no cash. And the Halal cart on the corner only takes cash. So, I went to my coworker and I asked her to borrow $10 to pay for a falafel platter. She handed me $10, I bought my food, and then I never paid her back. What is her recourse? Nothing. Nothing except for telling everybody else in the office that I am a deadbeat. That $10 is unsecured debt. It is that simple.
Compare that to this: I ask her to borrow the $10, and tell her that I am going to leave my autographed Kansas City Royals baseball card with her until I pay her back. If I do not pay her back, she keeps the card. That is secured debt – debt secured by some piece of property (otherwise known as collateral on the loan).
WHAT DOES FILING FOR BANKRUPTCY MEAN?
Most of us have played Monopoly at some point. If you have, you know the stinging feeling of bankruptcy — at least in the game, bankruptcy is death. Once you become insolvent and cannot cover your rent after landing on some gentrified hotel on Connecticut Avenue, you lose — the game is over.
Life is not Monopoly. In real life, bankruptcy is an opportunity to reset your financial life. For consumers, bankruptcy might mean selling off excess assets and discharging any debt not covered by the proceeds of those sales or it could mean keeping everything but working out a repayment plan. For businesses, bankruptcy could mean closing the doors, selling off your assets, and paying off as much of your debt as possible or it could mean a reorganization of your company with a plan to restructure assets and debts and continuing to earn income.
BANKRUPTCY STATISTICS SHOW A SURPRISING TREND IN EARLY 2022
All of those are signs that the economy is finally headed for a reckoning. The last few years, the US government has printed money and handed out relief programs at the expense of the value of the dollar, which is currently facing inflationary forces it hasn’t seen since the late 1970s. By the time they got the dollar stabilized in the 1980s,, interest rates were in the twentysomething percents — which indicates we have a lot more fat to trim and a lot more damage to the economy to come before we are out of this mess today. Either that, or they let inflation run amok and everyone’s salary simply buys less.
WILL MY CREDIT SCORE RISE WHEN BANKRUPTCY COMES OFF?
A credit score is a measurement of how much of a risk it is to extend credit to an individual. If you have fallen behind on your bills or have never been extended credit and demonstrated the ability to use it responsibly (such as a credit card that you have paid on time), you will usually have a low credit score.
HOW LONG DOES THE BANKRUPTCY PROCESS TAKE?
They say waiting is the hardest part, but if you have been struggling to deal with debt collectors and to try to keep your head above water while your budget is stretched thin every month with minimum payments and the like, you may be relieved to know that — at least once you file your bankruptcy petition — the worst, though not the wait, is over. Once you file your initial papers, all debt collection attempts must stop while the bankruptcy is pending, which means fewer debt collection calls and letters and at least a few steps towards normalcy and sanity. But just how long does the bankruptcy process take?
WHAT YOU NEED TO KNOW ABOUT BANKRUPTCY AND FORECLOSURE SCAMS
Are you in danger of losing your house? “Our consultants can save your home for a low fee!”
Struggling to keep up with your monthly bills? Is your credit score lower than my self-esteem? “Our credit counseling can teach you the tricks and hacks that help you take control of your finances and resurrect your credit, allowing you to get the same opportunities as all of those rich upper-class people you have been envious of your whole life. Go from gas card to platinum card!”
Does it sound too good to be true? That’s because it is. Where there is debt, there will be piranhas trying to feast on the flesh of poor victims who are already struggling to keep their heads above water. Not only are shameless debt collectors trying to squeeze every penny out of you that they can, but there are predators pretending to be saviors promising you the world, only to deliver heartache in the end.
DOES FILING BANKRUPTCY STOP FORECLOSURE?
Home. What does your home mean to you? Maybe it is where your son took his first steps on the day you moved into that huge house, after three years living in a tiny, cramped Brooklyn apartment. Maybe it is where you wake up and look out your back window to see a scene resembling a Bob Ross painting every single day. Home is where your family congregates, where holidays are celebrated, and where the land beneath your feet belongs to you, and you alone.
Home is your rock – your security. It’s no wonder that for many people, one of the biggest concerns with filing bankruptcy is about foreclosure and saving their home. Many have received threatening letters and phone calls from their mortgage lender and are terrified of the prospect of losing … home.
WHY HIRE A BANKRUPTCY LAWYER?
For those of us who have fallen behind on our finances, it can seem like every paycheck is a stretch. Every expense needs to be analyzed. Everything except for rent, food, and electricity is a luxury. So, if you are looking at bankruptcy as a solution to your debt issues, it may be very tempting to try doing it yourself. After all, what do you have to lose?
WHAT BANKRUPTCY CANNOT DO FOR YOU
Bankruptcy is an incredible tool for rescuing your financial life from the crushing weight of title waves of debt, interest, and late fees. If you are behind on credit card bills, utilities, medical bills, and other unsecured debts, bankruptcy can help you turn everything around and, with time, rebuild your credit. But, bankruptcy is not a cure-all for financial problems. It won’t turn you, overnight, from someone behind on bills to a debt-free existence with a house, car, and the American dream realized.
BANKRUPTCY ATTORNEY FEES
There are few doubts that bankruptcy attorneys are helpful when you're in the midst of a crisis, but when you're already financially stretched beyond your breaking point, what do you do about bankruptcy attorney fees? That's doubly true if you're carrying debt that includes attorneys' fees and you still need bankruptcy assistance.
WHY DO WE HAVE BANKRUPTCY LAWS?
Bankruptcy isn’t a new concept by any means, but did you know that it is so fundamental to our national economy that it was actually enshrined in the US constitutional laws? Yes, if you are filing for bankruptcy, not only should you not be ashamed of doing so, but by doing so, you are exercising your rights as an American citizen.
WHAT IS SECURED DEBT?
If you have been struggling with debt or investigating your options with regard to bankruptcy, you may have come across the term “secured debt.” Most of your high-value debt will be secured debt, and this is also debt that is difficult to clear in bankruptcy without relinquishing the property that is attached to the loan.
WHAT IS EMERGENCY BANKRUPTCY FILING?
If you’ve begun to research bankruptcy filing, it probably sounds like a painful, convoluted process. It is certainly convoluted. The good news is this: it is absolutely possible to file an emergency bankruptcy petition. Furthermore, the moment you file a bankruptcy petition, an automatic stay on those collection activities takes effect – keeping foreclosure, debt collectors, liens, and seizures at bay.
BANKRUPTCY LAWS IN CALIFORNIA
California is a tough place to make it: you might be crashing on a friend’s couch in Sacramento, driving a barely running Ford with no air conditioning, and subsisting on a few dollars per day in Del Taco value meals. Or maybe you’re barely making the rent and buying dog food down in Long Beach, but at least you’re enjoying the sunshine and jugs with your puppy named Moose. It is easy for finances to get out of hand in one of the most expensive places in America to live.
WHAT IS A BANKRUPTCY TRUSTEE?
If you have begun to research bankruptcy, or if you have failed and are looking forward to the next steps, you are probably wondering who this mysterious trustee is in your bankruptcy case. Can this trustee be trusted? Should you trust the trustee or does the creditor trust the trustee?
BANKRUPTCY LAWS IN TEXAS
Texas really has everything, doesn’t it? Do you love exercising your Second Amendment rights and consider yourself a real American — down to the Ford F250 in the driveway and the flag on a pole in your front yard? Read on to find out which Texans are eligible to file a Chapter 7 bankruptcy and how much of their property Texan bankruptcy filers will be able to keep.
EXEMPT PROPERTY IN BANKRUPTCY
Some classes of property are exempt from this liquidation process. Of course, these rules are the most complex of all bankruptcy rules, partly as a means of combating bankruptcy fraud and also because the cost and standard of living vary greatly depending on where you live in the United States. While every state has its own rules, less than half of the states give you some extra flexibility and allow you to pick whether you want to live by the state rules or the federal rules.
BANKRUPTCY LAWS IN FLORIDA
Florida is very unique — it is one of the states that has opted out of the common federal rules for property exemptions, meaning when you file bankruptcy, you have to look at Florida law to determine what property you get to keep. Let’s take a step back and see how Florida property exemption rules work alongside federal bankruptcy law to determine both whether you are eligible to file a Chapter 7 bankruptcy and how much of your property you’ll be able to keep.
CREDIT COUNSELING IN BANKRUPTCY
Bankruptcy helps you clean up your financial life – erasing debt or restructuring it into a payment plan to help you catch up. If you’ve made financial mistakes, it is your chance to erase those mistakes and start over. As part of the bankruptcy process, lawmakers added a two-part education requirement. You can find a list of U.S. trustee-approved courses on their website, but here is some helpful background information.
BANKRUPTCY LAWS IN CONNECTICUT
You might think bankruptcy is entirely a federal matter — it’s filed in federal bankruptcy courts, after all. However, the rules that matter most to you (the ones that determine whether you are eligible to file, and the rules that say which property you get to keep) are localized at the state level, because things are quite different (many would say exponentially better and certainly more affordable) here than in more hectic places like New York City.
HIDDEN ADVANTAGES OF CHAPTER 13 BANKRUPTCY
Under Chapter 13, your debt is reorganized as part of a payment plan, which allows you to catch up on your debt over time, rather than eliminate it. There are some major advantages to the Chapter 13 filing: you no longer have to pass a means test that requires you to be lower income, and you get to keep your assets rather than have many of your treasured possessions stripped away and sold off to pay your debt.
BANKRUPTCY LAWS IN PENNSYLVANIA
The state-level rules exist because the cost of living varies greatly by state. Instead of trying to set a universal standard, they have left it to the state to determine what property you keep (though thankfully, Pennsylvania is one of the states that gives you a choice between their rules and some default federal rules) and the bankruptcy courts have localized the income limits for filing as well.
BANKRUPTCY LAWS IN NEW JERSEY
If you file bankruptcy in Manhattan, you’ll be able to exempt almost $180,000 in equity from your home in a bankruptcy filing. But, if you’ve moved out to the suburbs in New Jersey, there is no exemption under state law, so you’ll be stuck protecting only about $25,000 under the federal exemption rules. Learn about how New Jersey rules work alongside federal bankruptcy law to determine whether you are eligible to file a Chapter 7 bankruptcy and how much of your property you’ll be able to keep.
BIDEN LOAN FORGIVENESS & BANKRUPTCY
President Joe Biden announced his long-awaited student loan forgiveness plan. However, the plan drew criticism from both sides of the political spectrum, with some claiming that it was not enough relief (particularly in regards to bankruptcy) while others claimed it went too far – and they promised to do everything they could to stop it.
BANKRUPTCY LAWS IN NEW YORK
If you are struggling to make ends meet in New York, you may be considering bankruptcy as a way to eliminate past debt after hard times and get a fresh start on your financial life. If so, you’ll need to know some of the local New York rules about bankruptcy.
WHAT HAPPENS TO YOUR PROPERTY IN BANKRUPTCY?
Bankruptcy is a legal process in which an individual or business seeks relief from overwhelming debts. While bankruptcy can provide a fresh start for those struggling with financial difficulties, it can also come with significant consequences, particularly with regard to one’s property. In this article, we will cover what happens to your property during bankruptcy.
BANKRUPTCY LAWS IN OHIO
If you do file for bankruptcy, almost every rule is governed by a clear set of federal laws that apply in every state. Except, of course, for the rules that govern whether you are eligible to file and what property you may get to keep—the rules that matter most to the person who is actually filing. Those rules are set by state law. Let’s take a quick look at Ohio’s special rules for eligibility and property exemptions.
THE DIFFERENCES IN BANKRUPTCY LAWS ACROSS THE UNITED STATES
Bankruptcy is a federal legal process, but there are some differences in bankruptcy laws between states. These differences can have a significant impact on how bankruptcy cases are handled and can affect the outcomes for individuals and businesses seeking debt relief. In this article, we will explore some of the key differences in bankruptcy laws between states and how they can impact bankruptcy cases.
BANKRUPTCY LAW IN ARIZONA
The state of Arizona has its own set of bankruptcy laws, exemptions, and processes, which can be different from those in other states. In this article, we will explore the unique nature of bankruptcy law in Arizona and what it means for those who are considering filing for bankruptcy.
FEDERAL RESERVE RAISES INTEREST RATES
The recent decision by the Federal Reserve to raise interest rates for the 10th time in just over a year has significant implications for individuals, homeowners, and borrowers. This 0.25 percentage point increase brings the benchmark borrowing rate to a target range of 5%-5.25%, the highest since August 2007. Let’s delve deeper into how this rate hike may impact different segments of the population.
ADVERSARY PROCEEDING IN BANKRUPTCY
Bankruptcy proceedings can be complex, and within the realm of bankruptcy law, the term “adversary proceeding” holds a significant place. An adversary proceeding refers to a lawsuit that arises within a bankruptcy case. It involves disputes between parties with conflicting interests, such as the debtor and a creditor, or disputes among creditors themselves. In this article, we will delve into the intricacies of adversary proceedings, exploring their purpose, common scenarios, and the potential impact they can have on bankruptcy cases.
HOMESTEAD EXEMPTIONS IN BANKRUPTCY EXPLAINED
Homestead exemptions refer to legal protections for homeowners that allow them to keep their primary residence during bankruptcy proceedings. These exemptions are designed to prevent creditors from seizing a debtor’s home to pay off debts. In this article, we will explore what homestead exemptions are, how they work in bankruptcy, and the specifics of homestead exemptions in different states.
10 BANKRUPTCY TERMS YOU NEED TO KNOW
Are you familiar with the differences between the various chapters of bankruptcy? Can you define an adversary proceeding? Do you know the qualifications for bankruptcy means test? If you answered “no” to any of those questions, then don’t worry – most of us can’t. Bankruptcy is a complex legal process that involves terminology that may be unfamiliar to the average person. Understanding the language of bankruptcy is important if you are considering filing for bankruptcy or working with a bankruptcy attorney.
10 TERMS IN CHAPTER 7 BANKRUPTCY YOU SHOULD KNOW
Chapter 7 bankruptcy is a legal process designed to provide individuals and businesses with a fresh financial start by eliminating most of their debts. It’s a complex legal field that can feel impossible to understand if you haven’t studied law yourself. To better navigate this legal labyrinth, we’ve compiled 10 essential terms that will shed light on several, pivotal components of the bankruptcy process.
UNDERSTANDING THE 341(A) MEETING OF CREDITORS IN BANKRUPTCY
The 341(a) Meeting of Creditors is a crucial step in the bankruptcy process that provides an opportunity for creditors, the bankruptcy trustee, and the borrower to meet and discuss the case. If you’re considering filing for bankruptcy, it’s important to understand this meeting and its significance. In this article, we’ll delve into the details of the 341(a) Meeting of Creditors and its implications for individuals seeking debt relief.
BANKRUPTCY IN THE GIG ECONOMY
Freelancers, gig workers, and independent contractors have more flexibility but also face unique financial risks. If you are one of them and are considering bankruptcy, this guide is for you. We hope it will help you navigate this complex process and encourage you to seek the expertise of a qualified bankruptcy attorney.
10 ESSENTIAL CHAPTER 13 BANKRUPTCY TERMS
Many of us aren’t aware of the intricacies of bankruptcy law. Fewer are aware of the existence of multiple chapters of bankruptcy, or of their different functions. We aren’t all qualified to be bankruptcy attorneys, after all – not to worry, though. In this list, you’ll find terminology that may demystify Chapter 13 bankruptcy in particular.
WHAT IS A "CRAMDOWN" IN BANKRUPTCY?
Navigating the complexities of bankruptcy requires a thorough understanding of its terms and provisions. Among these, the "cramdown" is one of the more nuanced yet powerful tools available to borrowers. Let's dive deep into cramdowns, demystifying what they mean and how they function within the realm of bankruptcy.
HOW MEDICAL DEBT CAN LEAD TO BANKRUPTCY
Medical debt is a mounting concern for many Americans, sometimes leading to a financial spiral that feels insurmountable. The burden of medical bills is evident when we consider that medical expenses are one of the most common reasons individuals file for bankruptcy in the U.S. This article dives deep into the realm of medical debt and how bankruptcy can offer a lifeline to those drowning under its weight.
UNDERSTANDING ACCIDENTAL BANKRUPTCY FRAUD
Bankruptcy fraud is often associated with deliberate and malicious intent. However, accidental bankruptcy fraud can occur when an individual unintentionally violates the complex laws and regulations governing bankruptcy. This type of fraud can still have serious consequences, however, even if the applicant’s intentions were anything but malicious. Understanding how accidental bankruptcy fraud occurs, the penalties associated with it, and the ways to avoid it is essential for anyone considering bankruptcy.
U.S. CREDIT CARD DEBT BREAKS THROUGH TO $1 TRILLION
For the first time in history, U.S. credit card debt has breached the $1 trillion mark. With interest rates remaining high and student loan repayments looming, could more Americans be facing the possibility of bankruptcy in the coming years? We’re here to explain to you that bankruptcy does not have to mean the end of your financial future. On the contrary, in the face of these approaching hardships, it’s more important than ever to understand the benefits of bankruptcy as a tool for recovery, rather than a point of financial failure.
WHAT IF YOUR BANKRUPTCY IS DISMISSED?
Bankruptcy offers a lifeline for many struggling with unmanageable debt, enabling them to achieve a fresh start. However, not all bankruptcy filings are successful. When a bankruptcy case is dismissed, the petitioner loses the protections that bankruptcy affords, including the automatic stay that prevents creditors from pursuing collections. In this article, we’ll explore what it means when a bankruptcy is dismissed and how an attorney can help you navigate the complexities of the process.
THE CONSEQUENCES OF BANKRUPTCY FRAUD
When facing overwhelming debt, some may be tempted to manipulate the bankruptcy system as a shortcut to financial relief. However, bankruptcy fraud is a serious federal offense that carries severe penalties, including imprisonment and hefty fines. This article aims to provide a comprehensive understanding of bankruptcy fraud, common methods of committing it, and the legal repercussions of this particular financial violation.
THE RISING TREND OF BANKRUPTCY AMONG SENIORS
Bankruptcy, traditionally viewed as a last resort for those overwhelmed with debt, is showing an alarming rise among the elderly population in America. A study from the Consumer Bankruptcy Project revealed that the rate of Americans aged 65 and older filing for bankruptcy has tripled since 1991. This escalation poses a series of challenges, not just for the seniors themselves but also for society at large. This article aims to dissect the factors contributing to this rising trend and explore the implications for the elderly population.
BANKRUPTCY FOR VETERANS: WHAT'S DIFFERENT AND WHAT TO CONSIDER
Veterans often face unique financial challenges upon transitioning from active military service to civilian life. While federal programs exist to aid veterans in various aspects of life, from healthcare to home loans, the path to financial stability can still be tumultuous. Unfortunately, this leads to a heightened susceptibility to bankruptcy. This article aims to explore the nuances of bankruptcy for veterans, distinguishing key differences and considerations from conventional bankruptcy cases.
THE ROLE OF DIGITAL ASSETS IN BANKRUPTCY
The digital revolution has transformed numerous aspects of our lives, and the financial sector is no exception. Cryptocurrencies, once a fringe interest, have now become mainstream, and their inclusion in bankruptcy proceedings is an increasingly pertinent issue. As digital assets such as Bitcoin, Ethereum, and countless others grow in value and adoption, how are they addressed during bankruptcy? This article delves into this complex issue, providing insights for both debtors and creditors.
NAVIGATING BANKRUPTCY WITH SHARED ASSETS IN NON-MARRIED RELATIONSHIPS
As societal norms shift, an increasing number of couples are cohabiting and sharing assets without formalizing their union through marriage. While this can offer more flexibility and autonomy, it can also create complex financial dynamics, particularly if bankruptcy becomes a consideration for one or both parties. In this article, we will dissect the nuances of handling shared assets in non-married relationships during bankruptcy proceedings.
WILL OPENAI GO BANKRUPT IN 2024?
Recent discussions in the tech world have brought OpenAI, the company behind ChatGPT, into the spotlight, with rumors suggesting potential bankruptcy by 2024. However, these claims need a closer examination to discern their validity in the context of the ever-evolving AI industry. What exactly does the future hold for OpenAI and its widely-used tool, ChatGPT? Is this budding industry quickly approaching a premature end, or will it prove to be an enduring pillar of the tech industry?
AS HOLIDAY SPENDING RISES, 60% OF AMERICANS LIVE PAYCHEQUE TO PAYCHEQUE
Recent economic trends have highlighted a concerning reality for many American households. Despite a slight easing of inflation, as noted by the Federal Reserve, the financial pressures on families remain acute. As we approach the holiday season, which is notorious for being a financial sinkhole that can last throughout the year, a concerning amount of Americans are living paycheck to paycheck while holiday spending continues to rise. Does a rash of national bankruptcies await the new year? How viable of an option is bankruptcy when faced with mounting debt? Let’s take a look.
AMERICANS ARE $1.13 TRILLION IN DEBT - WHAT DOES THIS MEAN?
The total credit card debt in the United States has reached a staggering $1.13 trillion, as reported by the Federal Reserve Bank of New York. A significant rise was observed in the last quarter of 2023, with an increase of approximately 5%, amounting to an additional $50 billion. Notably, credit card delinquencies have escalated, particularly among the younger millennial demographic, aged 30 to 39, who are simultaneously grappling with substantial student loan burdens. What does this mean for individual consumers? What about national interest rates? Will individuals and corporations experience unprecedented rates of bankruptcy in the new year? Let’s discuss.
JOANN FABRICS FILES BANKRUPTCY - HERE'S THE STORY
Joann, the venerable institution in the fabric and craft retail sector, aged 81 years, finds itself navigating rough financial waters, compelling it to seek Chapter 11 bankruptcy protection. Amid an era where discretionary spending is on a decline, the Ohio-rooted company has unveiled plans to fortify its financial standing through a strategic infusion of $132 million in new funding. This bold move aims to slash its daunting $1 billion debt by half, ensuring its fleet of approximately 850 brick-and-mortar locations and its digital storefront continues to serve its loyal customer base without interruption.