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 […]
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 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 […]
As student loan debt has overtaken credit card debt in the United States, totaling over $850 billion this year, more and more well-meaning people are coming face-to-face with the reality of crippling student loan payments. While student loan debt is considered secured debt, meaning you are obligated to continue paying it despite filing a successful […]
While there has never been a ruling by the Supreme Court regarding this issue, there are several cases in which District Courts have passed down decisions on the issue of discrimination based on bankruptcy status. The good news is, you cannot be fired by a public employer based on the fact that you have filed […]
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…
