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.
A bankruptcy exemption is simply the value of certain property that state or federal law says, a creditor can NOT touch, no matter what. The two (2) types of Bankruptcy Exemptions are Real Property and Personal Property Exemptions. Each state enacts its own exemption laws or a state can decide to have the federal exemption laws apply within its borders. Regardless, every state provides protection for a certain amount of real or personal property owned by its citizens against the claims of creditors. Real Property (Homestead) Exemption In Alabama, the Real Property exemption is also known as the Homestead exemption. …Read More
Have you been struggling with debt but are afraid to seek bankruptcy counsel? So many times people who are struggling financially only turn to Bankruptcy as a last resort, as should be the case. Folks who have never had a reason to learn about what bankruptcy really is and has to offer, don’t know the benefits and usually assume it is a bad thing. I can’t begin to tell you how many clients tell me that they wish they had not waited so long to seek bankruptcy advice. Many people are nervous, scared and even ashamed, sadly, to come into…Read More
Many people worry about how filing a bankruptcy case will affect their home. As long as your case is carefully planned out ahead of time, you can typically file for bankruptcy relief without affecting your mortgage or your home. Mortgages Debts After Chapter 7 Depending on the type of bankruptcy case you file, you may either eliminate your mortgage debt or leave it untouched. In a Chapter 7 case, for example, you must choose whether or not to reaffirm the mortgage debt on any property you have. Reaffirming a debt basically means that you will still be obligated for that…Read More
Security clearance issues are common place in the news these days. The news covers a lot of areas. Security Clearance Process in the News at the Highest Level Do you have to complete the SF 86 in its entirety to be given Security Clearance that allows access to classified material? Recently, the back log in the clearance process has gotten even more attention. This report notes that there is a government backlog of approximately 700,000 security clearance reviews which has led agencies like the Defense Department to inadvertently issue interim passes to criminals – even rapists and killers – prompting…Read More
Mandatory arbitration provisions are once again at the forefront of policy discourse on Capitol Hill as government agency heads and members of Congress grapple with how to best balance the interests of both companies and consumers. But there doesn’t seem to be much hope for one side of the debate, as Congress is set to overturn a rule issued by the Consumer Financial Protection Bureau (CFPB) in July of this year. The arbitration rule restricts certain companies’ ability to include arbitration clauses in contracts for things like bank accounts, credit cards, and payday loans. Despite the likelihood of Congress overturning…Read More
It is estimated that 500,000 insurance claims on damaged automobiles will be filed as a result of Hurricane Harvey alone. Given that Hurricane Irma engulfed the entire state of Florida, the number of hurricane damaged vehicles there can be expected to be immense as well. According to the Chicago Tribune, about half of flood damaged automobiles are resold and while it’s not illegal to buy and sell if all parties have knowledge of the true condition of the car, oftentimes such damage is never revealed. So if you are planning the purchase of a used automobile in the near future,…Read More
Often, I consult with prospective and existing clients who are involved in a lawsuit. Normally, their first question is exactly how a bankruptcy case affects a lawsuit. The answer to that question depends on several factors. First, it must be determined if the debtor (the person filing for or contemplating filing for bankruptcy) is the plaintiff, i.e., the person bringing the lawsuit or the defendant, i.e., the person being sued. This is very important in the bankruptcy context. If the debtor is the plaintiff in a lawsuit, then normally the lawsuit can continue; however, the existence of the lawsuit must…Read More
If you have more debt than you can juggle, it is always wise to seek the advice of a bankruptcy attorney. Bankruptcy may not always be the best course of action, but if it is, here is an overview of the process. Bankruptcy Process Overview Review Your Options Meet with an attorney to discuss what your options may be, whether it is to file bankruptcy or not and if so whether a Chapter 7, Chapter 13 or some other chapter is best for you. There are rules about who qualifies for which bankruptcy, some of which are specific to the…Read More
Many people that I have met with have asked me my opinion about debt settlement companies. The advice I offer is to be diligent and research all of the options advertised. Most importantly talk with an attorney who has experience and knowledge in handling debt issues. In my opinion, the best way to do this is in a face to face meeting. In my experience debt settlement works only for a small percentage of people. For example, I recently read an article in the New York Times about debt settlement and some of the unknown consequences. Downsides of Debt Settlement…Read More
As most of us know, one of the joys of home ownership is that the homeowner has to pay property taxes. These taxes help fund things like schools and parks. The amount of tax owed is generally based on the assessed value of the home. Most mortgage contracts require you be current on your property taxes, and many times the mortgage lender will collect the property taxes through regular monthly mortgage payments. If there is not enough in escrow to pay the taxes or if the taxes are not paid by the mortgage company, it is the homeowner’s responsibility to…Read More