As we all know, building and establishing good credit is a process that takes time and due diligence. For most of my clients, they turn to bankruptcy relief because of unexpected life circumstances. For some, the concept of filing for bankruptcy is hard to stomach, particularly when they have spent so long building a good […]
As an individual contemplating filing for bankruptcy, you may be wondering what a discharge is and what types of debts can be discharged through bankruptcy. The bankruptcy discharge releases the debtor from personal liability for certain types of debts. This means that once a debt is “discharged” through bankruptcy, the debtor is no longer legally […]
I get lots of inquiries from people that have their student loans in deferment status. They’re all asking the same thing: What do I do when my student loans come due? My answer is the same for most of them: Find a way to pay them, because for most people, student loan debt is non-dischargeable […]
Let’s assume that you never file bankruptcy, and at some point you lose your job and yo don’t have enough money to cover your house payment or your car payment. That create more of an income problem, rather than a debt problem, because if you want to keep your house and car, you must continue […]
When your income drops, and your budget is tight, there is a risk that the largest thing in your budget doesn’t get paid – that’s your mortgage. Lot’s of people say that they would pay their mortgage first, but if your income has decreased to the point you can’t pay everything, there is no way […]
The Consumer Financial Protection Bureau (CFPB) and the US Dept. of Education issued a report on Friday that recommends that Congress change the bankruptcy law to include bankruptcy relief from private student loans. The 2005 change in bankruptcy law made private student loans non-dischargeable in bankruptcy, which simply means that they survive bankruptcy in most […]
In a previous blog posts, I have described cases where the client’s income is not enough to cover their living expenses, which include housing, utilities, food, clothing, laundry, medical, gas expense, miscellaneous expenses, insurances and car payment. In some weeks, about 1/3rd of the cases that I see for an initial consultation involve a situation […]
The AP is reporting that the federal government will start supervising the largest credit reporting firms. The stated goal is to help consumers get access to fair and affordable credit. Some commentators say that the government action is a positive move because many consumers are unsuccessful at getting credit reporting agencies to correct inaccurate information. […]
The LA Times is reporting that San Bernardino became the third city is less than a month to seek bankruptcy protection. Two other California cities, Stockton and Mammoth Lakes, filed bankruptcy in recent weeks. Although this is another example that bankruptcy is not just for individuals, it falls in line with the prediction of more […]
The American Bankruptcy Institute (ABI) reports that total bankruptcy filings for May 2012 decreased 11% compared to May 2011. Consumer bankruptcy filings for May 2012 decreased 10 percent compared to the May 2011. Some people may view this as a sign of improvement in the economy, but I don’t believe that is accurate. The ABI […]
Here’s the “Easy” button: For the typical person that I see in a debt consultation, the determining factors for qualification for a Chapter 7 bankruptcy are the person’s income and expenses. Keep in mind, it’s like looking at an elephant…
One factor in determining if you qualify for Chapter 7 is to compare your previous six months of income to median income for people in Texas, based on the household size. Although you can be above median income and still…
Most people that file bankruptcy file under Chapter 7, which is the form of bankruptcy where there is no monthly payment to a trustee. Chapter 7 has numerous advantages over Chapter 13. Here are the key advantages: Chapter 7 Bankruptcy…
