Bankruptcy 101: The Personal Guarantee

It’s not unusual for first-time borrowers, those with poor credit histories, or newly-created businesses to obtain loans. In difficult economic times, it can be next to impossible for these applicants to receive credit unless they are helped by a guarantor or, in the case of a business application, they guarantee the loan with personal assets like their home or vehicle. Guarantors are usually people with better Read More

Understanding the Difference Between Contingent, Liquidated, and Disputed Bankruptcy Claims

When you file for bankruptcy, you are required to complete paperwork that gives the bankruptcy court an in-depth overview of your financial situation. This includes listing all of your creditors and debts. While some debt information is straightforward (for example, you owe $5,000 on your Discover Card and $100,000 on your mortgage), other obligations can be difficult to quantify at the time you fill out the Read More

Understanding the Difference Between Repossession and Charge Off

When you take out a loan to purchase a car or home, the expectation is that you will repay the money in installments. If financial difficulties make it impossible to meet this obligation, the lender has the option of repossessing the asset or charging off the debt.  What Is Repossession? When you miss a certain number of payments, the lender may repossess, or take back, the property. With homes, a foreclosure Read More

Bankruptcy Basics: The Reorganization Plan

When you’re overwhelmed by debt, you have two bankruptcy options: Chapter 7, which discharges all unsecured debt in exchange for the liquidation (sale) of your nonexempt property, and one of the four reorganization bankruptcies. Although designed for different debtors and situations, each one permits individuals and entities with disposable income to restructure and pay down their debt without losing Read More

Understanding Involuntary Bankruptcy

Most people file for bankruptcy of their own volition. They realize that their income and necessary expenses leave them with little leftover to tackle huge credit card or medical bills and want to start over. In a minority of cases, however, debtors visit a bankruptcy attorney because the decision was made for them: a creditor filed an involuntary bankruptcy petition against them. Involuntary Bankruptcy Read More

5 Things Bankruptcy Cannot Do

When you’re overwhelmed by bills you can’t pay, bankruptcy can give you a fresh start by eliminating most debt (Chapter 7) or condensing it into an affordable repayment plan (Chapter 13). Once you receive your discharge, you’re free to start over. Before you file, it is important to examine what types of debt you owe, as some obligations are not dischargeable in a Chapter 7 bankruptcy. Others could theoretically Read More

Should You File for Bankruptcy If You’re on Social Security?

You’re getting nonstop calls and letters from creditors, making you afraid to answer your phone or check the mail. No matter how much they cajole or demand, you can’t pay these debts because your only income is from Social Security. What can you do? Many people in your situation would do nothing if they don’t have assets that a creditor can seize. Social Security income generally can’t be garnished, so no matter Read More

4 Lawsuits That Don’t Go Away Even If You File for Bankruptcy

Many people see bankruptcy as an opportunity to escape the consequences of a lawsuit. It’s not a misguided belief: if your credit card issuer or utility company is suing you to collect an unpaid balance, the automatic stay stops all further collection activities. However, filing for bankruptcy won’t stop every legal action that you are involved in. Below is an overview of four lawsuits that won’t go away even after Read More

The Pros and Cons of Joint Bankruptcy

If you and your spouse are struggling with debt, you have the option of filing individual or joint bankruptcy petitions. While many couples opt to file jointly, especially when they hold joint accounts or cosigned on debts for one another, doing so has pros and cons that need to be taken into account before reaching a decision. Pros of Joint Bankruptcy The advantages of filing for bankruptcy with your spouse Read More

Will Bankruptcy Affect Future Employment?

When people prepare to file for bankruptcy, their initial concern is how insolvency will affect their credit. Their next concern is how it can affect their future employment. It’s safe to say that in most cases, filing for bankruptcy will not affect your current job at all. Your employer may not even learn about it unless your wages were being garnished (in which case they will be notified that the garnishment Read More

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