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 […]

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 […]

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 […]

Recall in part 1 and part 2 of this article that Joe is a former Florida resident who moved to Michigan and then filed chapter 7 bankruptcy. Under the bankruptcy code, Florida is considered to be his domicile because he lived in Florida for the 180-day period preceding the 730-day period preceding the filing of […]

Recall in Part 1 of our Chapter 7 Bankruptcy blog series that “Joe” is a former Florida resident who filed chapter 7 after he moved to Michigan. Under the bankruptcy code, Florida was considered to be his domicile because he lived in Florida for the 180-day period preceding the 730-day period preceding the filing of […]

People often think that chapter 7 cases are easy, straight forward and uncomplicated. It’s easy, right? An attorney just buys a computer software bankruptcy program, inputs some information, files the case, goes to the 341 hearing and then waits for the discharge order. While I certainly don’t turn down simple cases, I do come across […]