The federal courts set up the process called bankruptcy to help consumers and businesses control, repay, and/or eliminate their debts. Bankruptcy typically falls under two main categories: liquidation, in which the debtor opts to sell some of their property, thereby liquidating their assets, in order to eliminate their debt; and reorganization, in which debtors repay […]
Category: Bankruptcy Law Center
The Basics of Chapter 7 Bankruptcy
If you’re considering filing for bankruptcy, you probably have more than a few questions. How do you know if bankruptcy is right for you? Do you even qualify to file for bankruptcy? Which kind of bankruptcy should you file for? This guide will walk you through the basics of Chapter 7 bankruptcy, what it means, […]
Can Student Loans Be Discharged in Bankruptcy?
Student loans now outpace credit card debt. Americans hold over $1.3 trillion in student loans, and the average college graduate leaves school with $37,000 worth of student debt. For graduates and their parents who are facing financial hardships as payscales wane and living expenses rise, filing for bankruptcy has become appealing. Student loans are typically not […]
Is Bankruptcy or Debt Consolidation Your Best Option?
Life is stressful when you have unmanageable debt, which may cause you to make a rash decision about taking out a debt consolidation loan. Although it can be helpful in less severe cases, lenders often don’t discuss the possible drawbacks. If you haven’t yet decided whether debt consolidation or bankruptcy is right for you, then […]
Actions to Take and to Avoid When Preparing to File for Bankruptcy
There are specific steps that you must undertake before filing for bankruptcy to protect your assets and produce a successful outcome. There are also actions that you must avoid to prevent loss of assets, termination of your case, or possible jail time if intentional fraud becomes evident. Some of these actions are mandated as part […]
Should You File For Bankruptcy If You’re Unemployed
If you lose your job, and you’re facing overwhelming debt, you might be tempted to file for bankruptcy. While filing bankruptcy after a job loss makes for good timing, and while bankruptcy might be your best option, there are still many things to consider before filing your petition. Take the following things into consideration when […]
Bankruptcy Law: Filing A Proof Of Claim
Generally speaking, to share in the distribution of the bankruptcy estate, a creditor must file a proof of claim. The Bankruptcy Code’s definition of a claim is very broad. A claim should be filed even if the consumer has no judgment against the debtor, has not begun litigation or is not certain of the exact […]
Bankruptcy’s Effect On Collection And Repossession Activities
As soon as an entity has filed a bankruptcy petition, the consumer and the consumer’s attorney are subject to the far-reaching impact of the automatic stay. Virtually all legal proceedings against the debtor and other collection efforts must cease until the bankruptcy court grants relief. Violators of the stay risk contempt, actual damages, costs and […]
Timing the Bankruptcy Filing
Another factor to consider in deciding on a course of action is the timing of the petition. Even after the debtor decides that a bankruptcy should be filed, it is sometimes advisable to wait before filing. In some cases, a debtor has no choice but to file immediately. Prompt action may be necessary to forestall […]
Bankruptcy Law: Should Spouses File Jointly?
In cases in which both a husband and wife are involved, a question presents itself: Should one or both spouses file? The answer is that it is usually preferable for both to file. The same initial court fee can provide both spouses the advantages of a bankruptcy discharge. Debts are often jointly owed; a spouse […]