bankruptcy blog

This answer draws a stereotypical lawyer’s response…it depends. Unsecured debts such as medical bills are generally discharged with little or no payment; however, secured debts and certain “priority” debts must be paid in full. Priority debts, such as child support and certain types of IRS tax debt, typically will be paid in full (chapter 13)  … Read more

Filing bankruptcy will ruin my credit!!! This is not accurate. Filing bankruptcy is an opportunity for a fresh start and not the end of your financial life. The typical individual filing for bankruptcy relief already has poor credit or is headed that direction. From the long term perspective, filing for bankruptcy will eventually improve your  … Read more

When it comes to filing bankruptcy, medical bills tend to be a significant portion of debt included in many bankruptcy cases. In fact Elizabeth Warren in Maxed Out (2006) noted that a significant number of middle class people are still forced into bankruptcy in spite of the fact that they have insurance coverage. In other  … Read more

You often here the misinformed dismissing bankruptcy as a viable debt relief option because, if you file, you will lose everything. NOT TRUE, NOT TRUE, NOT TRUE!!! Bankruptcy trustees, not the bankruptcy judge, only take non-exempt property. All states have exemptions schemes(admittedly some more liberal than others) that generally allow people in bankruptcy to keep  … Read more

A chapter 13 bankruptcy is often referred to as the “wage earner’s bankruptcy.” Chapter 13 allows you to create a payment plan to allow you to pay back your creditors over a three to five year time period. The amount of debt you will have to pay back depends on what is called the “means  … Read more

There are many myths about bankruptcy you may hear floating among conversations by the misinformed. If you are faced with the decision of filing bankruptcy, make sure you are aware of the facts and don’t rely on what your uncle’s cousin’s friend once told you. For those who may be familiar with the concept (and  … Read more

WE SUE DEBT COLLECTORS!!! YOU HAVE RIGHTS AND BAKER & ASSOCIATES WILL PURSUE THEM. HAVE YOU EXPERIENCED ONE OR MORE OF THE FOLLOWING: Did a debt collector contact a family member, friend, or neighbor and tell them about your debt? Did this happen more than once? Did a debt collector threaten to use violence or  … Read more

It is commonly thought that filing a bankruptcy will ruin your credit score. Although generally bankruptcy will have the immediate short term effect of lowering your credit score, the reality is in the long run it generally helps your credit score. FICO (your credit score) is nothing more than a mathematical formula used by creditors  … Read more

House foreclosure – problems paying you house mortgage? A large number of people are turning to “loan modification firms” to help them get a loan modification. Not only are they using these newly founded firms and believing the “hype” but they are paying large sums of money to “loan modification” companies. Far too much money  … Read more