There seems to be an upsurge of anti-bankruptcy rhetoric aimed at indebted Americans to make them feel guilty about their financial circumstances which force them into bankruptcy. Since the critics can't honestly say that bankruptcy is not an effective way to discharge debt and get a fresh financial start, now many are saying that bankruptcy [...]
While in most cases filing for Chapter 7 bankruptcy will not impact your mortgage, Chapter 13 bankruptcy in another matter. When a debtor files for Chapter 13 bankruptcy and has a second mortgage he/she just may be able to win a bankruptcy discharge for the second mortgage on their home if it is considered unsecured [...]
Chapter 11 Bankruptcy Means Test One of the benefits of filing Chapter 11 bankruptcy is that the debtor's disposable income is not calculated using the Means Test , the same test which is required for Chapter 13 bankruptcy . Arguably, the biggest change to the bankruptcy code was the incorporation of the Means Test for [...]
President Obama has signed the landmark $875 billion health care reform bill into law at the White House. In our previous blog we discussed changes that could take effect immediately. Below are some changes that could take effect by 2016: • New health insurance subsidies would be provided to families of four making up to [...]
Automatic bill pay has become very popular, especially for those who want the convenience of having their monthly ongoing bills automatically deducted from their checking account. But for debtors considering bankruptcy automatic bill payments are not a good idea. Here's why: You often have no idea what you are spending each month. If you're considering [...]
With the implementation of the Credit Card Act last month, many credit card companies are taking actions to make up for lost profits. The implementation of annual fees and inactivity fees are just two of the most commonly used strategies being utilized by credit card companies to fill in the gap of lost profits. But [...]
Congress has approved a jobs incentive bill that is aimed at curbing unemployment and stimulating job growth. Under the new spending bill companies that hire unemployed workers will get a temporary payroll tax holiday. The bill which passed Wednesday contains about $18 billion in tax breaks and a $20 billion infusion of cash into highway [...]
When a debtor faces a job loss, the first thing they should do is apply for unemployment insurance. Don't make the assumption that you don't qualify for unemployment insurance, apply and allow them to approve or not approve your benefits. One of the mistakes that many unemployed workers make is waiting too long to apply [...]
Many debtors are intimidated by debt collectors who often cast themselves as these all powerful entities who can wreck havoc on a debtor's life. But the truth of the matter is that debt collectors aren't as powerful as they seem, it's just that many debtors' lack of knowledge about their rights and the limitations of [...]
Many debtors considering bankruptcy owe money to family and friends and want to keep them out of the bankruptcy proceeding. To avoid problems with family and friends who have loaned them money, some debtors may choose to pay back a debt owed to family/friends either partially or fully before filing bankruptcy. But doing so may [...]