Category archive for ‘Bankruptcy Myths’ 
What If My Creditor Gets a Judgment Against Me Before I File Bankruptcy?
by Drew Broaddus on 9/02/10 | 0 Comment(s)
Many individuals contact us with concerns about credit card debts that have been turned over to collections. Often, the client is concerned about what will happen if the collections agency obtains a judgment on the debt before the client files for bankruptcy. The short answer is that if the underlying debt would have been dischargeable [...]
How Many Times Can I File for Bankruptcy and Receive a Discharge?
by Drew Broaddus on 8/22/10 | 0 Comment(s)
While you can file bankruptcy as many times as you like, “wiping away” debts and getting a fresh start through the bankruptcy discharge is the primary goal of most debtors. The question therefore is not really “how many times can I file for bankruptcy?” as much as it is how often can I receive a [...]
Is Student Loan Debt Bringing Down Your Standard of Living?
by Moderator on 8/18/10 | 0 Comment(s)
Student loans are typically not discharged in bankruptcy. It is difficult, but not impossible, to discharge such debts if you can show that payment of the debt “will impose an undue hardship on you and your dependents.” See 11 U.S.C. § 523(a)(8). Whether a student loan is discharged based on hardship is not automatically determined in the [...]
Problems to avoid when considering bankruptcy – part 3
by Richard West on 8/15/10 | 0 Comment(s)
In the third and final part of this series, we continue to examine problems that one can avoid when preparing to file a bankruptcy case. 18. When preparing to meet with an attorney or, having retained an attorney and preparing your worksheets, don’t forget to list any debts that you may owe to family, friends [...]
When is a Bankruptcy Case Over?
by Richard Stokan on 8/09/10 | 0 Comment(s)
Receiving a discharge of debts does not close the bankruptcy case Once a bankruptcy trustee’s duties are complete, preference and fraudulent transfers recovered and all nonexempt assets liquidated and distributed to creditors, the bankruptcy estate is fully administered and can be closed by the Bankruptcy Court. If a trustee gives notice of no dividends under [...]
If I walk away from my underwater house, can I be sued for the deficiency?
by Stephen Trezza on 7/20/10 | 0 Comment(s)
With the current housing market in shambles, more and more people find themselves on the verge of foreclosure. Many people find themselves in a situation where the property value is lower than it was when the property was first purchased. This is what is referred to as an underwater mortgage, meaning that there is negative [...]
I think that my Debt Collector is Harassing me. What can I do?
by Stephen Trezza on 7/13/10 | 0 Comment(s)
In case you have filed for bankruptcy under any chapter, you are protected by the “automatic stay” provision which stops creditors from forms of collection action, including the continuation of a court case against you. Think of the “automatic stay” as a firewall that is supposed to stop debt collectors from trying to collect debt [...]
Credit Scores and Bankruptcy Bump
by John C. Colwell on 7/13/10 | 0 Comment(s)
Today, the AP is reporting a general downturn in the all important FICO score, which score is used primarily to determine loan eligibility. http://www.google.com/hostednews/ap/article/ALeqM5g74qg6iCDzFlCHhjsiBGFIHAiJPQD9GT9T580 Many, if not all of our clients will, at some point, consider the impact an impending bankruptcy will have upon this score. Oddly enough, credit scores after bankruptcy, notwithstanding this report, [...]
Can I go to jail if my payday loan check bounces?
by Stephen Trezza on 7/06/10 | 0 Comment(s)
If you happen to be behind on your payday loans and your checks keep bouncing, you may be worried about facing criminal prosecutions. Some “payday” lenders have been known to call and threaten borrowers to “pay or go to jail.” As a result many “payday” loan borrowers are terrified by threats of criminal prosecution. But if [...]
When the credit industry controls the bankruptcy laws, women lose
by Moderator on 7/04/10 | 0 Comment(s)
Despite lip service to the contary, the now infamous bankruptcy reforms of 2005 were bought and paid for by the credit card industry. Credit card companies used their substantial lobbying influence to make it harder for consumers to shed credit card bills in chapter 7 bankruptcy. Armed with the argument that those who could afford to pay [...]
