Posted on March 11, 2022 in Bankruptcy Law

There are a variety of different types of debts that can affect a person or family. In some cases, a person may receive assistance from a friend or family member when they sign a loan. For example, a person may be looking to purchase a new car, but if they do not have a significant credit history, they may not be able to obtain a loan on their own. Having a parent or another person who has a high credit score cosign the loan will provide the lender with a better guarantee that the debt will be repaid. However, if the person experiences financial hardship that affects their ability to make ongoing payments on the loan, the co-signer may be obligated to repay the loan. While bankruptcy may be an option that can help address these debts, it is important to understand how a co-signer will be affected in these cases.

How Chapter 7 and Chapter 13 Bankruptcy Affects Co-Signers

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 Posted on March 08, 2022 in Bankruptcy Law

If you are a homeowner who has defaulted on your mortgage payments or are experiencing other issues that have affected your ability to repay your debts, you may be considering bankruptcy. Filing for bankruptcy will allow you to halt foreclosure proceedings as you determine your options. If you plan to pursue a Chapter 7 bankruptcy, this will allow you to discharge a number of different types of debts, eliminating the requirement to repay what you owe and ensuring that you will receive a fresh financial start. However, the discharge of your mortgage loan will allow your lender to proceed with a foreclosure and take possession of your home. To prevent this, you may choose not to include your mortgage in your bankruptcy, and if you continue making payments while also making up any past-due payments or related fees, you may be able to maintain ownership of your home. 

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 Posted on February 28, 2022 in Bankruptcy

There are multiple types of debts that can cause a person and their family to experience financial difficulties. Tax debts can be especially problematic since debtors are not always able to eliminate these debts through bankruptcy. Taxpayers will want to understand their options in situations where the IRS or a state takes action to collect taxes that are due. By understanding how IRS tax levies and tax liens are affected by a bankruptcy case, a person can make sure they take the correct steps to receive the debt relief they need.

What Is a Tax Levy?

When a taxpayer owes taxes, the IRS may take multiple different types of actions to collect these debts, and these actions are known as tax levies. The IRS may contact a person’s bank and seize the funds in an account, or it may put an order in place to garnish the person’s wages. However, if a taxpayer files for bankruptcy, the automatic stay in their case will apply to tax levies, and the IRS will be required to cease these collection activities while the case is ongoing.

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 Posted on February 22, 2022 in Bankruptcy

Originally published: August 6, 2014 -- Updated: February 22, 2022

UPDATE: As discussed below, there are a variety of negative emotions that are associated with bankruptcy, and in some cases, these may lead people to take inadvisable actions or engage in behavior that will affect their ability to maintain financial stability. However, some of these negative emotions may be avoided by understanding the purposes of bankruptcy and the reasons why people seek relief from their debts. By working to eliminate the stigma associated with bankruptcy, people can approach this process in a more positive manner.

It is important to remember that bankruptcy is a right that is afforded to people in the United States, ensuring that they can receive a fresh financial start if they are in a difficult situation. Filing for bankruptcy does not necessarily mean that a person has been financially irresponsible or that they are to blame for the problems they are experiencing. In fact, most people who file for bankruptcy do so because of circumstances that are out of their control. The unexpected loss of a job, health issues that prevent a person from earning an income, or large medical bills are all issues that can put someone in a difficult financial position and make it impossible to repay their debts. In these cases, bankruptcy can relieve a person and their family from a financial burden that they could not have avoided. Taking advantage of the laws to receive relief from debts should not be an issue that reflects on a person’s character.

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 Posted on February 17, 2022 in Bankruptcy

If you have significant debts, you may be considering bankruptcy to wipe out some or all of what you owe, providing you with a fresh financial start. However, you may be concerned that you will have to give up some of your money or property during the bankruptcy process. By understanding how different types of bankruptcy address this issue and the type of assets that may be exempt, you can determine your best options and ensure that you will be positioned for success once your bankruptcy is complete.

Liquidation of Assets in Chapter 7 Bankruptcy

For many people, Chapter 7 bankruptcy may be the best option for debt relief, since it will allow for the discharge of many types of debts. However, it may require you to turn over certain assets. This is known as liquidation, since the assets that you turn over will be sold, and your creditors will receive payments for some of what you owe. Fortunately, the law provides a number of exemptions from liquidation, meaning that you will be able to maintain ownership of a significant portion of your assets.

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 Posted on February 14, 2022 in Bankruptcy

Most people have debts of some sort. Certain types of debts may be necessary to own a home or vehicle, and other debts may be used to make purchases or receive education or medical treatment. While debts may be manageable for many people, there are situations where they can cause significant financial difficulty, especially if a person or family encounters issues that affect their income and ability to make payments. In these cases, bankruptcy may be an option that will allow for the elimination of debts. However, those who are looking to receive debt relief will need to understand how different types of debts are classified and how the type of bankruptcy they pursue will affect the debts they owe.

Addressing Secured and Unsecured Debts Through Chapter 7 or Chapter 13 Bankruptcy

Debts generally fall into one of two categories:

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 Posted on February 08, 2022 in Bankruptcy

If you are a homeowner who is experiencing financial difficulties, the possibility of foreclosure is likely one of your largest concerns. If you default on your mortgage, your lender may begin foreclosure proceedings, and if you do not make up the missed payments, you could lose ownership of your home. Fortunately, there are multiple options available that may provide you with debt relief, including filing for bankruptcy. With the help of an attorney, you can determine the best way to proceed, and you can take steps to prevent foreclosure while regaining financial stability.

Addressing Foreclosure Through Chapter 7 or Chapter 13 Bankruptcy

The first thing to understand is that filing for bankruptcy will allow you to stop foreclosure proceedings. After a bankruptcy petition is filed, an automatic stay will be put in place that prevents creditors from taking any actions to enforce your obligations, including proceeding with lawsuits to recover debts, repossessing property, or foreclosing on your home. Taking action to file for bankruptcy as soon as you are aware of foreclosure proceedings will make sure you can address your debts and determine the best course of action to receive relief.

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 Posted on February 03, 2022 in Bankruptcy

When a person is determining their options for receiving relief from their debts and getting a fresh financial start, they may pursue one of two possible methods of filing for bankruptcy. While Chapter 7 bankruptcy is often the preferred method, since it will allow for the elimination of many different types of debts within a few months, this option is not always available. If a person does not qualify for Chapter 7, or if they wish to maintain ownership of their home or other assets, they may opt for a Chapter 13 bankruptcy. During the bankruptcy process, there are a variety of situations where a person who had originally planned to pursue a Chapter 13 bankruptcy may decide to convert their case to a Chapter 7 bankruptcy. Understanding when this is possible will help a debtor make the best use of the available options for receiving relief from their debts.

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 Posted on January 27, 2022 in Bankruptcy

People who are struggling to repay the debts they owe may be able to receive relief by filing for bankruptcy. While there are different types of bankruptcy that may apply in different situations, Chapter 13 bankruptcy is usually the preferred option for those who wish to avoid losing their homes or other property they own. However, these debtors will be required to make ongoing monthly payments in a repayment plan that will last from three to five years. If they experience financial difficulties that cause them to be unable to make payments, their bankruptcy case may be dismissed. In these situations, debtors may wonder about the money that they already have paid into the repayment plan and whether some of these payments may be refunded to them.

Procedures Followed During the Dismissal of a Chapter 13 Case

If a Chapter 13 bankruptcy is dismissed, bankruptcy protections will no longer apply, and creditors may take action to collect debts owed by the debtor. In some cases, a debtor may choose to convert their case to a Chapter 7 bankruptcy and receive a discharge of their outstanding debts. However, this raises the question of what will happen to funds that were paid to the trustee in the Chapter 13 case but had not yet been distributed to the creditors in the repayment plan. 

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 Posted on January 24, 2022 in Bankruptcy

If you have large debts that you are struggling to repay, or if you have experienced financial issues that affect your ability to make ongoing payments, bankruptcy may be the best option in your situation. By eliminating debts through Chapter 7 bankruptcy or consolidating debts into a single affordable payment plan through Chapter 13 bankruptcy, you can regain financial stability and take steps to avoid financial problems in the future. However, it is important to understand how certain actions that you may take during the bankruptcy process may affect your case. By avoiding the following, you can make sure you will be able to properly address your debts and move forward successfully:

• Making large purchases or generating new debts - In some cases, people who plan to file for bankruptcy may believe that they should use as much of their debts as possible since those debts will be wiped out once they complete the bankruptcy process. A person may max out their credit cards, take out new loans, or purchase items without the intent of paying the full amount owed. However, these actions may be considered bankruptcy fraud, and they could result in the dismissal of a bankruptcy case because a court believes that a person intended to abuse the bankruptcy process. In some cases, a person may even face criminal charges for these actions. It is best to avoid creating new debts or making significant purchases within 90 days before you file for bankruptcy.

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