Bankruptcy can be considered a taboo subject because of the fears and misconceptions about bankruptcy. But sometimes people need a helping hand, and bankruptcy may be right for them. The good news is these negative stereotypes about bankruptcy are usually not true. We'll discuss some common misconceptions of bankrutpcy and the truth regarding these misconceptions. [...]
Fast Company shares the stories of multiple people who have filed for bankruptcy. They share why it has been the best decision they've ever made. "Clean Slate" Whitney Reynolds filed for bankruptcy in 2014 because of overwhelming credit card debt. She had racked up $23,000 of credit card debt since graduating college. Her father [...]
AP News reports that every year, only a fraction of Americans that need financial help file for bankruptcy. 14% of U.S households need financial help but only 1% of them file for bankruptcy. Many wonder why these households are not getting the financial help they need. Bankruptcy attorneys have a simple explanation: bankruptcy is [...]
Most people who file Chapter 7 bankruptcy have little assets and qualify to have most of their unsecured debt discharged. Unsecured debt that may qualify to be wiped off or discharged includes medical bills and credit cards . Having little assets and qualifying debt can help make the process a lot easier. Keep in mind, [...]
When you file for bankruptcy, you will have to attend a hearing conducted by your bankruptcy trustee called a “meeting of creditors” or a 341 hearing. The purpose of this meeting is to allow the bankruptcy trustee an opportunity to ask you questions about the information you have provided in your bankruptcy petition, schedules, and [...]
There are a number of misconceptions about bankruptcy with many consumers under the impression that filing bankruptcy will hurt them. Fortunately, the process can help you and once you gain the necessary knowledge and get clarity about filing, it may improve your financial situation in more ways than one. In short, if you are unsure [...]
Reduced income while your expenses remain the same. Debtors who have suffered a job loss, salary reduction or have taken a job with compensation lower than what they've become accustomed to, may need to file bankruptcy. Reduced income over the short-term may be tolerable but long-term is another matter. Bankruptcy will help debtors discharge their [...]
How Bankruptcy Helps Small Business Small businesses that choose to file Chapter 11 bankruptcy have an opportunity to get their financial affairs in order, reduce and get a fresh financial start. Many businesses think of bankruptcy as an end to their dream; but Chapter 11 bankruptcy is not an end to their business but rather [...]
Under 2005 bankruptcy reform, IRAs now enjoy projection when a debtor files for bankruptcy. Traditional and Roth IRA accounts with up to $1,171,650 in them are protected from creditor seizure during bankruptcy. That amount is reviewed very three years and may be increased based on the consumer price index (CPI). However, the $1,171,650 limit on IRA's doesn't [...]
There are several rules that a debtor must abide by when filing Chapter 13 bankruptcy . For example, a Chapter 13 bankruptcy debtor is prohibited from transferring property without the consent of the bankruptcy court or borrowing money without first getting permission of the bankruptcy court. But what happens when a debtor inadvertently circumvents the [...]
