bankruptcy blog

In the United States, we are afforded legal protection when we file bankruptcy. The law allows us to eliminate our debt and relieve our financial burden. We can file Chapter 7 liquidation bankruptcy or Chapter 13 reorganization bankruptcy as an individual or with a spouse. Where problems can come from is if you either intentionally  … Read more

When people get into financial trouble and operate a small business, they may wonder what will happen to the business. Whether or not you wish to continue operating the business will determine the type of bankruptcy you should file. Chapter 7 Chapter 7 bankruptcy can be filed both for yourself or your small business. If  … Read more

Former homeowners in the United States who thought they were avoiding foreclosure by arranging a short sale are now receiving notices that they owe the remaining balance on their original home loan. Short sales can occur months or years before receiving notifications of additional amounts due. When your home has been foreclosed on and auctioned  … Read more

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