A common people attempt to get out of debt is by borrowing against your house by refinancing your mortgage or taking out a home equity loan or home equity line of credit (HELOC). This allows people to take out a new loan to pay off existing (higher interest) loans. One primary benefit it this allows the […]

Bankruptcy can be a valuable tool for individuals and businesses looking to get out from under insurmountable debt to get a fresh start. The Bankruptcy Code consists of five distinct types of bankruptcy for individuals and businesses for debts owed in the United States (the sixth, Chapter 9, is only available to municipalities to reorganize […]

Factors for Deciding Which Option is Right for You Debt to Income Ratio: How much debt are you carrying compared to your available income? This is a critical factor.  A person earning $45,000 per year with debts of $20,000 has a big problem because debt settlement will not be feasible leaving bankruptcy as the only […]

Many people in need of legal advice concerning financial problems and the possibility of filing bankruptcy understandably want to get it done as cheaply and efficiently as possible.  In today’s world of easy internet access, many of us take it upon ourselves to research answers online to become educated on the benefits and pitfalls of […]

Below are some of the most common myths that people believe about filing bankruptcy and the bankruptcy process overall. Filing Bankruptcy Means I’m a Failure There is an old saying that “bad things happen to good people.” Every single day good people experience difficult situations: spouses pass away, people become ill or have medical emergencies, […]

If you are behind on your car payments and facing repossession, filing for bankruptcy can help.  Filing for bankruptcy will generate an automatic stay, which will stop creditors (at least temporarily) from repossessing the vehicle. Depending on which Chapter of the bankruptcy laws you file under, your options to keep the vehicle will vary.  Chapter 7 […]

A chapter 13 bankruptcy is a reorganization bankruptcy in which the debtor’s goal is the entry of an order confirming their proposed chapter 13 plan. Once the plan is confirmed then the debtor makes payments pursuant to the plan for typically 36 to 60 months. When the plan payments have been completed then the court […]

Chapter 13 bankruptcy cases differ from Chapter 7 bankruptcies in many ways.  While both have a mandatory Meeting of Creditors as required by 11 U.S.C. Section 341 (a.k.a.-The 341 Hearing), Chapter 13 cases will also have a SECOND hearing early in the case, called the “Confirmation Hearing”. The term “341 Meeting of Creditors” is a […]

The cost of health care is a major problem for many people and can be a prime contributor in the decision to file personal bankruptcy.  Bankruptcy can be a useful tool to reduce or eliminate tremendous medical bills. Medical Debt and Bankruptcy A 2021 Census Bureau study found nearly 1 in 5 households (20%) couldn’t […]

It’s a myth that a bankruptcy filing cannot provide relief from an individual’s income tax liabilities.  In fact, a chapter 7 bankruptcy can greatly assist with income tax problems in certain limited situations. Let’s explore below how a bankruptcy can discharge (wipe out) personal income tax liabilities in the following scenarios and situations: Important Factors […]