Latest on the Bankruptcy Blog

If you are behind on a debt, or you owe child support, back taxes or a student loan, a court judgment entered against you mandates that a portion of your wages be garnished from your paycheck. This money will be sent directly to the debtor until it is paid off or other arrangements are made.  … Read more

The unsecured creditor extends credit on the faith of the buyers/debtors ability and willingness to pay. If the debtor fails to pay, the creditor has legal means to receive payment from the debtor. If the debtor does not pay voluntarily, the creditor has a few options to take. Unsecured debt are things like credit cards,  … Read more

In 1978 Congress passed the Fair Debt Collection Practices Act (FDCPA) to eliminate abusive practices and regulate the debt collection industry. According to the Federal Trade Commission’s website: Section 802 Congressional findings and declarations of purpose a. Abusive Practices “There is abundant evidence of the use of abusive practices by many debt collectors. Abusive debt  … Read more

You may already have more debt than you can handle, and looking for ways to reduce your payments. Then you see the advertisements come across your social media feed or in your email  for services offering to improve your credit scores or help you repair your credit. They often charge outrageous fees to do the  … Read more

Many Americans are looking for ways to reduce or eliminate their consumer debt. If bankruptcy  is in your immediate future, you may have to attend a mandatory credit counseling program. Credit Card Industry Some large nationally promoted credit counseling services rely heavily on the credit card industry for financial support. So it stands to reason  … Read more

The Bankruptcy Abuse and Prevention Act is a law that went into effect in 2005. Credit card companies strongly supported the new laws, while they didn’t get everything they wanted to be included in the law, they did get a lot of changes to the way people file bankruptcy. Means Test The means test is  … Read more

Chapter 13 bankruptcy  is a court-approved plan to pay back part or all of your debt over five years. You must have a reliable source of income to be eligible to file this type of bankruptcy. Your income is the basis for figuring out the amount of your repayment plan. The first step should always  … Read more

Chapter 13 bankruptcy involves a reasonable, court-approved payment plan to pay back part or all of your debt within five years. To be able to qualify for this type of bankruptcy you must have a relatively reliable income. Your income level will be what is used to base your repayment plan. Monthly Budget As part  … Read more

According to the Student Loan Marketing Association (Sallie Mae), the organization that administers the government’s insurance program for education lenders, most courts are reluctant to discharge student loans. Undue Hardship Your student loans may be discharged if you can prove that paying them creates an “undue hardship on you and your dependents”, but this is  … Read more

f you’ve already tried other alternatives to work with your creditors and have been unsuccessful either because the creditors were inflexible or because you were unable to follow through with your payments, it may be time to seriously consider bankruptcy. Credit Counseling Programs If you were unable to maintain the terms of the program in  … Read more