bankruptcy blog

As this challenging year draws to a close, millions of families are finding themselves out of work and in growing debt. The financial burden for most American’s spreads like wildfire in uncertain times of today when the choices between feeding the family or other living essentials. Unemployment also brings additional financial burdens to families as  … Read more

An estimate by the Federal Reserve Bank of  New York, reports a large percentage of the population is deemed as “financially solvent”. Financial insolvency, otherwise known as “being broke”, means one owes more in debt than has in valued assets. The FRBNY estimates nearly 15% of the population is considered financially insolvent. As the economy  … Read more

Chapter 7 bankruptcy is the most popular type of personal bankruptcy. It discharges the most debt without repayment and takes the least amount of time. If you choose between Chapter 7 and Chapter 13, it is usually the better option to choose Chapter 7. Basic Process The first thing to do when you are going  … Read more

During our current economic crisis, retail and restaurants are going out of business in record numbers. For large complex businesses, Chapter 11 bankruptcy will oversee the procedures and reorganization of the company’s debt. These corporations seek the court’s protection while working out a plan to pay their debts and resume business.  When a company has  … Read more

Filing for bankruptcy can prevent foreclosure, car repossession, or other forms of property loss, which may be vital for the family. When you file your paperwork with the court, an automatic stay goes into effect, stopping all actions against you from collecting on a debt. Bankruptcy can help to stop Foreclosure If you would like  … Read more

A bankruptcy estate is automatically created once a debtor files for bankruptcy. This bankruptcy estate includes income, assets, and all the debtor’s properties when filing for bankruptcy. Exemptions from the estate include educational trusts and most pensions. However, bankruptcy law determines which asset or property owned by the debtor will be included in the bankruptcy  … Read more

Generally, people confuse insolvency with bankruptcy; however, both the terms disclose a different meaning from each other. In simple terms, it will not be wrong to say that if insolvency is a problem, then bankruptcy is a solution to it. What is insolvency? Insolvency is a term used to define a situation in which a  … Read more

Wage garnishment sometimes referred to as garnishment, is a legal action that mandates the deduction of a debtor’s earnings by the garnishee (a third party – usually the debtor’s employer) to resolve and pay up a creditor. Garnishments can be performed on any debt, such as back taxes, consumer debts, child support, unpaid court costs,  … Read more

Making a debtor pay his debts has always been a concern of society since the beginning of civilizations. At that time, the debtor himself was responsible for the obligation, with his freedom or even with his life. The obligation fell upon the individual and not upon his property. Roman Law Roman law contains enforced punishment  … Read more

After the quarantine began in March 2020, many companies and individuals were affected differently, which provoked some proposals for changes in the Bankruptcy Law. If approved, this law can be changed to suspend debt collection for 30 days, and create a preventive negotiation system to provide further protection and prevent many companies from closing their  … Read more