Posted on February 07, 2023 in Bankruptcy And Divorce

Financial challenges and divorce often go hand-in-hand. This is nothing to be embarrassed about. It is a common reality that once times get tough, couples learn that their approaches to adversity do not meld in healthy and life-affirming ways. As a result, many American spouses find themselves facing the need to file for bankruptcy and to file for divorce simultaneously.

However, for better and for worse, couples cannot combine their divorce and bankruptcy cases. They must choose to either file for bankruptcy or to file for divorce first. If you and your spouse are facing this dilemma, carefully weigh the pros and cons of each approach before committing to a plan of action.

Filing for Bankruptcy First

If you and your spouse can remain legally married for a time, it may be advantageous to file for bankruptcy before initiating the divorce process. This approach will allow you to either restructure or eliminate marital debts that you would otherwise need to divide and conquer separately after the finalization of your divorce. As divorce cases take time to resolve, waiting to address your debts could result in late fees, mounting interest burdens, and a greater debt load overall.

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 Posted on February 03, 2023 in Credit Card Debt

Credit cards serve as an important financial resource for many Americans. They allow consumers to pay debts and make purchases in an instant. When they are used as strategic tools or true stop-gaps, they can come in handy during emergencies and as very temporary sources of funding. Yet, all too often, credit card balances become financial burdens. When a balance is not consistently paid off and paid off on time, possessing a credit card can become an expensive source of debt and anxiety.

Thankfully, there are a number of ways in which consumers can resolve burdensome credit card debt. Depending on an individual’s unique circumstances, resolving credit card debt may be best approached through filing for bankruptcy or via a bankruptcy alternative.

Filing for Bankruptcy 

Credit card debt is generally best resolved via a bankruptcy filing under two circumstances. First, individuals who do not earn much money may not be in a position to repay their creditors – even a little – for some time. Filing for Chapter 7 bankruptcy can eliminate credit card debt without any repayment obligations. This can help filers to achieve a fresh start.

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 Posted on January 30, 2023 in Bankruptcy Advice

If you have decided that filing for bankruptcy will help you to get your finances back on track, it is time to decide which kind of bankruptcy relief you will be requesting. In most areas of the country, individuals and married couples filing jointly have two primary options: Chapter 7 and Chapter 13 bankruptcy. The matter of which one is a better option depends upon a filer’s unique priorities, needs, and financial situation.

Chapter 7 Bankruptcy

If you are eligible to file for Chapter 7 bankruptcy, you are not facing an immediate risk of foreclosure, and a significant fraction of your debt is eligible for discharge, this is likely to be the best option for your circumstances.

At the conclusion of a successful Chapter 7 bankruptcy case, a filer’s eligible unsecured debts—including credit card bills and overdue medical accounts—are discharged. This means that the debt is wiped out and affected creditors can no longer demand repayment.

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 Posted on January 24, 2023 in Chapter 7

Chapter 7 bankruptcy is often referred to as “liquidation bankruptcy.” This nickname gives many potential filers the impression that they will lose all of their property if they take advantage of the debt relief opportunity that Chapter 7 bankruptcy affords. Thankfully, this common misperception is not grounded in reality.

The vast majority of people who are eligible to file for Chapter 7 relief do not own much valuable property. As a result, they do not risk having to liquidate any – or many – of their assets.

The Role of a Chapter 7 Trustee

The most significant benefit of filing for Chapter 7 bankruptcy is that this process allows qualifying non-secured debts to be discharged without repayment. This means that a filer’s eligible debts will be eliminated at the conclusion of their case, even though they have not made any additional direct payments to their creditors.

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 Posted on January 19, 2023 in Credit Score

If you are concerned about what the process of filing for bankruptcy will do to your credit history – and your credit score by extension – know that you are not alone. Many individuals who are struggling with debt hesitate to seek out debt relief because they are understandably worried about credit-related consequences. The challenging news is that your credit score will drop if you file for bankruptcy. The great news is that your credit score may ultimately benefit from your decision to file for bankruptcy.

Credit Score Building Blocks

When your credit score is calculated, a number of financial factors are taken into account. For example, some weight is given to the kinds of debt you are responsible for (credit mix), whether there have been any recent inquiries into your credit history, and the length of your history. Substantial weight is given to how responsible you have been in repaying your debt on time, the amounts that you owe, and how much of your credit you are using at any given time.

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 Posted on January 16, 2023 in Debt Relief

There are many resources available for people who are struggling to repay their debts on time. The best-known debt relief opportunity is bankruptcy. Filing for bankruptcy is an excellent option under many circumstances. However, it is not the only debt management solution that individuals who are navigating unmanageable debts may benefit from considering. A number of bankruptcy alternatives might be more beneficial for specific situations.

When Is Bankruptcy Preferable?

Bankruptcy allows filers to discharge qualifying unsecured debts. Chapter 7 filers can receive a discharge within a few weeks, as they are not required to repay their creditors before benefitting from this form of relief. Chapter 13 filers make manageable payments on their debt over the span of 3-5 years before receiving a discharge. Once the discharge is entered, the filer is no longer responsible for the debt nor can their creditors ever demand repayment of it again.

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 Posted on January 12, 2023 in Automatic Stay

If you are struggling to repay your debts on time, you have likely spent time wishing that there was a “pause button” that you could hit so that you would be granted the time you need to find solutions to your financial challenges. If so, you should know about the protections afforded by a legal resource commonly referred to as the automatic stay.

While the automatic stay does not halt time, it does halt your creditors’ ability to demand payment and engage in other collection activities while your Chapter 7 or Chapter 13 bankruptcy case remains active. This means that, from the moment that you file bankruptcy paperwork with the court until the moment that your case is favorably closed or dismissed, your creditors will be legally required to stop breathing down your neck.

The Purposes of the Automatic Stay

There are two primary reasons why the courts protect the immediate interests of bankruptcy filers via the automatic stay. First, bankruptcy courts need time to review bankruptcy petitions. If creditors keep imposing fees, pursuing legal action, and otherwise altering a consumer’s debt situation before the court has been given the opportunity to review their case, the entire situation becomes a moving target. By halting creditors in their tracks, courts can evaluate a debtor’s entire financial picture before it evolves.

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 Posted on January 09, 2023 in Bankruptcy

Every year, hundreds of thousands of Americans choose to file for personal bankruptcy. Although a stigma was traditionally associated with seeking bankruptcy relief, the Great Recession of 2008 taught the public that everyone, no matter how hard-working and responsible, can find themselves in need of assistance through no fault of their own.

If you are struggling to pay back your debts on time, you are not alone. Thankfully, there are ways to get your finances back on track. If you are thinking about filing for bankruptcy, this opportunity may or may not be a great option for you. Whether filing for bankruptcy makes good sense depends upon the unique nature of your circumstances.

Why and How Are You Struggling?

Chapter 7 bankruptcy helps low-income filers to rid themselves of certain unsecured debts, like medical bills and credit card balances. Chapter 13 bankruptcy helps filers to reorganize their debts so that repaying what they owe becomes a manageable process.

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 Posted on December 29, 2022 in Debt Relief

Bankruptcy is an avenue that may be available for individuals who are struggling to manage their debts. It can be an effective way of dealing with a wide variety of debts, such as medical bills, credit cards, mortgages, loans, and even unpaid taxes. However, understanding how different types of debts will be handled in a bankruptcy case is not always easy, especially since debts may be addressed differently depending on whether a person chooses to pursue a Chapter 7 or Chapter 13 bankruptcy. With the help of a bankruptcy lawyer, you can evaluate the different types of debts you have and determine your best options for relief.

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 Posted on December 27, 2022 in Chapter 13 bankruptcy

Filing for bankruptcy can be a difficult decision. In some cases, a person may file for Chapter 7 bankruptcy, but they may later determine that a Chapter 13 bankruptcy would be more beneficial. In these cases, a person may be unsure about whether it is possible to convert from one type of bankruptcy to another. While these types of conversions are possible, there are certain criteria that must be met, and it is important to understand how bankruptcy laws may affect a case. 

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