bankruptcy blog

Regardless of their marital status, almost everyone in America has been affected by the economic downturn due to the coronavirus. Many married couples have found that hard financial times tend to increase their stress causing more marital problems. Financial issues are one of the leading causes of divorce in the United States. The uncertainty in  … Read more

Bankruptcy is a tool to eliminate overwhelming debt or to catch up on your secured debt. When you finish your bankruptcy case, your finances should be in a more manageable state. By removing your overwhelming debt, it creates an environment to make better financial habits. When you file for bankruptcy, that mark can remain on  … Read more

The Senate has recently passed a Coronavirus Stimulus Bill providing greater access to bankruptcy relief for distressed consumers and small businesses. The Coronavirus Aid Relief and Economic Security Act (CARES Act) will give financially distressed consumers greater access to bankruptcy relief. Key bankruptcy provisions within the CARES Act include: Amending the small business reorganization act  … Read more

When you file bankruptcy, the courts will ask you to submit paperwork listing your debts and your expenses. These figures will show your reasonable expenses which will vary by the debtor, state, or court. Your reasonable expenses will be deducted from your average income over the last six months before filing bankruptcy, the remaining money  … Read more

While not very common, you can change your Chapter 7 liquidation bankruptcy to a Chapter 13 reorganization bankruptcy.  If you filed Chapter 7 bankruptcy and made more money than your state’s median, you will not be able to pass the mandatory means test. Your trustee or creditor can file a motion to have your filing  … Read more

Ever since 2005 to be eligible to file Chapter 7 bankruptcy, you must pass the means test. To determine your eligibility, you will fill out the form “Statement of Current Monthly Income and Means Test Calculation.” This test will determine if your income is equal to or less than the median income in your state.  … Read more

In both Chapter 7 and Chapter 13 bankruptcy, you are allowed certain possessions to be exempt from creditors. Each state has its own laws to determine what property is exempt. Exempt property cannot be taken by creditors or your trustee to be sold and that money distributed to your creditors. Federal or State Exemptions If  … Read more

Besides eliminating your qualifying debt, a benefit you get from filing bankruptcy is the automatic stay. This court order goes into effect as soon as your file your petition with the court. The automatic stay stops all collection attempts against you. Creditors must go through the bankruptcy court regarding any debt that you owe. How  … Read more

When you file chapter 13 bankruptcy, you are required to make your first payment within 30 days of filing for bankruptcy. If the bankruptcy judge confirms your plan, your payment will be dispersed to your creditors. If your plan never gets approved and your case is dismissed, your payments will be returned to you, minus  … Read more