Latest on the Bankruptcy Blog

Filing for bankruptcy can be a difficult decision and one that is influenced by many factors. There are numerous details to consider and one matter than can greatly complicate the bankruptcy process is a divorce. Before you decide to file for bankruptcy before or after a divorce, consider the following. The Debts When you file  … Read more

It comes as no surprise that credit card debt is the main source of debt among Americans. After all, the average American holds four active credit cards, each with balances over thousands of dollars. Although credit card debt is not the primary reason for Americans seeking bankruptcy, they have become the most popular source of  … Read more

This summer, around 250 Southern California homeowners fell victim to one of the largest foreclosure scams on record. After cheating struggling homeowners out of $1 million in debt, the perpetrator was sentenced to 25 years in prison for his crimes. How It Began In the beginning, the perpetrator used a corporate front to pay real  … Read more

As the foreclosure crisis drags on, short sales are becoming increasingly common. Unlike foreclosure—in which the bank seizes a property from the homeowner in lieu of mortgage repayment—short sales entail receiving permission from a lender to sell an underwater property for less than the amount owed on the mortgage. While short sales are generally considered  … Read more

Over the past few years, medical debt as become one of the largest contributors to bankruptcy filings in the United States. It is reported that over 60 percent of bankruptcy filings are due to medical debt. Fortunately, medical debt is one of the easiest debts to have discharged in bankruptcy. However, this doesn’t make the  … Read more

Over the long-term, a damaged credit score can make life very difficult. It can be a challenge to get any kind of loan modification or receive refinancing approval. It is therefore imperative that borrowers who have been through a debt settlement, in order to avoid bankruptcy, pursue measures to rebuild their credit scores as early  … Read more

Tax debt can arise for numerous reasons, many of which are simply out of the control of the taxpayer. There are those that ignore their tax liabilities or try and “work the system” to get around paying higher taxes, but many people ended up owing the IRS through no fault of their own. Whether it  … Read more

First and foremost, the skepticism stems from the fact that mortgage rates are already at record lows. While this has encouraged some homeowners to pursue mortgage modifications such as refinancing, it has done little to boost new home sales thus far. Namely, this is because credit standards are still extremely tight, making it difficult for  … Read more

One of the biggest sources of stress when in debt is the constant collection attempts of creditors. Many people feel trapped and hopeless when it comes to dealing with creditors, which they fear will not end just because they have entered bankruptcy. The truth is, once you enter bankruptcy creditors are legally prohibited from contacting  … Read more

Last quarter, the United States suffered an unparalleled surge in mortgage delinquencies as foreclosures continued to increase and banks offered fewer and fewer mortgage loan modification opportunities. According to the Office of the Comptroller of the Currency, the number of struggling borrowers, behind on their payments, rose nearly 17 percent quarter-to-quarter. What is Causing this  … Read more