Bankruptcy Articles and Information
If you are buried in debt and feel like it will be impossible for you to ever dig your way out, filing for bankruptcy may the answer. The purpose of the law is to provide people who have fallen deeply in debt to have a fresh financial start in life. The reasons for needing to file for bankruptcy are not important.
There are different types of bankruptcy. The main ones used by individuals are Chapter 7 and Chapter 13. Each one serves a different purpose and has its own set of filing and discharge rules. No matter which chapter you use, on the day you file your bankruptcy petition, all debt collection by all creditors must immediately stop. A bankruptcy attorney will evaluate your financial situation and the type of debt you have and help you decide which bankruptcy chapter is the one that best meets your needs.
Remember when a person’s 65th birthday used to be a milestone. Well, it still is of course, but that used to be the age at which your working days were over and your retirement began. You said goodbye to your boss and co-workers and did not look back. As they say, “That was then, this is now” and according to a recent article by CNBC’s “On the Money”, approximately 19 percent of people age 65 and over are still working either full or part-time. This is the highest rate since 1962 a span of over 55 years. Retirement is simply…Read More
Bankruptcy is common enough that most people know the basic principles for filing a case. However, some of the bankruptcy requirements are less well-known, which is why we always recommend you consult with an experienced bankruptcy attorney before filing a case. Keep Orderly Records First, the Court can require you to keep orderly business records if you own your own business. Profit and Loss statements, payroll records for employees, inventories of goods or supplies, and prepared financial statements are just a few examples. This rule partly exists so that a person cannot try to avoid investigation by claiming that…Read More
As a consumer bankruptcy attorney I frequently find myself advising clients who need bankruptcy relief because they have taken on the burden of not only their own debt but also debt incurred for their adult children. Of all the folks I try to help, this is oftentimes the most heartbreaking client. I know the client has found themselves in financial turmoil because of love for their child and it is hard, but necessary, to advise the parent to stop this behavior in order to find financial solutions. Tough Love Many news articles have been written on this topic of “tough…Read More
We are proud to announce that Knoxville attorneys Cindy T. Lawson and Heather Ellis Banks will be volunteering their time and expertise to assist their community. Legal Aid of East Tennessee (LAET), in partnership with the Knoxville Bar Association (KBA) has created a Debt Relief Legal Advice Clinic (DRLAC). The purpose of the clinic is to inform and educate individuals about debt issues, bankruptcy and reasons why someone should or should not file bankruptcy. Debt Relief Legal Advice Clinic The first meeting of the DRLAC will be Saturday, July 29 beginning at 9:30 a.m. The clinic will be held at…Read More
CNBC’s Diana Olick reports that two major lending changes mean it may be easier to qualify for a mortgage. Credit Rating Changes First, the three major credit rating agencies will no longer report tax liens and civil judgments on some consumer’s profiles if the information isn’t complete. For the data to be reported, it must include the person’s name, address, and either their date of birth or social security number. With the negative marks being removed, it could raise a person’s credit score as much as 20 points. In the past, the presence of a tax lien and/or judgments made…Read More
The total number of Bankruptcy filings in May of 2017 rose 5% over May of 2016. The actual number filed in 2017 was 69,668, up from 66,138 cases filed in May of last year according to the American Bankruptcy Institute & Epiq Systems. Commercial or Business Bankruptcy filings for the month of May also increased at a 5% clip to 3,572 up from 3,412 in May of 2016. ABI has partnered with Epiq Systems, a provider of managed technology for the global legal profession, in order to provide the most current bankruptcy filing data for analysts, researchers and members of…Read More
Equifax, Experian, and TransUnion, the nation’s three largest credit reporting agencies, announced back in March of this year that beginning July 1 they will no longer include tax liens and civil judgments on credit reports. (USA Today Article) Typically, this information has appeared on credit reports under a separate section from those sections listing active debts. By removing this information from credit reports, the overall effect could be a nationwide increase in credit ratings beginning soon. The bureaus announced that the rule change was an effort to cut down on incorrect or incomplete information. Reports to the bureaus that include…Read More
A recent CNBC article says according to a 2013 survey of consumer finances by the Federal Reserve, approximately 42% of households with someone age 65 to 74 have a home secured by debt. This number has grown from only 18.5% in 1992 and 32% in 2004. It is expected that this figure will continue to rise because an estimated 10,000 people per day turn 65 as part of the baby boom population. The article points out that in some situations, the retirees chose to finance a residence rather than paying cash for it even if they had the cash available. With…Read More
I have a three-year old toddler and it has been important for me and my husband to find ways to teach her about money and the value of $1. I firmly believe and have personally learned that there is not a one-size-fits-all approach to parenting. In our household, the following rules work for our daughter but you may need to adapt these lessons to fit your child’s personality and interests. The earlier we, as parents, begin teaching our children about how money is used and works, the more our children will use it in their lives. For our little toddler,…Read More
How many people do you know who can pay cash for a new car? I bet the answer is not many! The Federal Reserve Bank of New York recently released data showing that a record 107 million Americans owe on a car loan. As recently reported by CNN, that boils down to about 43% of the adult population. Just five years ago, in 2012, only 80 million Americans had auto loans. Back then, more Americans owed on a mortgage than an auto, but the tables have turned in 2017. No wonder the automakers have been reporting record sales figures! The…Read More