Latest on the Bankruptcy Blog

Bankruptcy laws can be challenging to navigate through, the steps can be complicated, and different states have different exemptions. The U.S. Bankruptcy Code is divided into “Chapters.” Each chapter represents a section of the code related to that section. Chapter 7 Chapter 7 is a type of bankruptcy that eliminates your qualifying debt without having  … Read more

Certain types of debt cannot be wiped out during the course of bankruptcy. If you wish to continue to live in your house, you must continue to make house payments. If you want to keep your vehicle, you must continue to make your car payments. Depending on the type of bankruptcy you file and what  … Read more

Chapter 7 personal bankruptcy is also known as the liquidation bankruptcy. This type of bankruptcy liquidates all of your unsecured debts without a repayment plan. You must forfeit all of your nonexempt property to the trustee so the assets can be sold and the money distributed to your creditors. The exemptions are pretty generous, so  … Read more

If you get behind in your debt, some creditors can seize the property that is used as collateral and sell it to recover some of the debt. Unsecured debt, however, such as credit cards, loans, and medical bills are harder for the creditor to recover any debt owed. When you file for bankruptcy, you provide  … Read more

The presumption of abuse guidelines were established when Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. One of the reasons for the act was to prevent people who make too much money to file Chapter 7 bankruptcy and eliminate their debt when they have more than enough income to pay for.  … Read more

Being unemployed or having a drastic reduction in income is a common cause for people filing bankruptcy. Nearly two-thirds of Americans listed “job-related financial stress” as the major factor in filing bankruptcy. The majority of us do not have sufficient savings to carry us through our rough financial times. We rely on credit cards and  … Read more

A recent study conducted at the National University of Singapore’s Social Service Research Center indicates people who are relieved of their debt such as through bankruptcy or a charitable contribution, perform better on cognitive functions and have less anxiety. The study was conducted between January 2015 and August 2017 involving almost 200 low-income people. The  … Read more

Medical debt can add up quickly, especially at a vulnerable time in your life. Medical debt is one of the top reasons people file for bankruptcy. Even if you have medical insurance, major surgeries or uncovered medical costs like preexisting illness can ruin your financial stability. Uninsured or underinsured Americans worry if they should go  … Read more

Money problems play a large part in couples arguments and divorce. If there is too much debt, the question becomes should you file for divorce before or after bankruptcy. Divorce is often one of the main reasons people file for bankruptcy. The costs involved with a divorce, loss of an income, having to relocate and  … Read more