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.
The Consumer Financial Protection Bureau (CFPB) has two sets of new amendments to its RESPA and TILA mortgage servicing rules that will go into effect on April 19. One set of these amendments affects borrowers who are in or have been in bankruptcy. New Amendments This set of amendments gives homeowners who are in or have been in a bankruptcy the right to receive monthly mortgage statements. In 2014, the CFPB issued a periodic mortgage statement rule that requires mortgage servicers to send monthly statements with detailed information about a borrower’s loan. The rule has a broad exemption for a…Read More
I previously wrote about various programs that are available for individuals struggling with student loan debt. You can find that information here and also a link to the website here. Many people have taken advantage of these programs with success but, sometimes, this does not solve all of their financial issues. Getting the student loans under control is important and it usually relieves some of the financial burden you may have, however, you may still need assistance with other consumer debt. The Issue with Bankruptcy and Income-Based Repayment We have helped many people who are in income-based repayment plans for…Read More
The Bankruptcy Court in the Eastern District of Tennessee recently ruled that back child support owed to by a non-custodial parent is not property of the bankruptcy estate, and therefore the debtor does not have to pay the back child support to her creditors in her bankruptcy. The issue before the court was whether the $60,000 owed by her ex-husband for back child support was property of the estate, and if it was property of the bankruptcy estate, whether the back child support could be exempted or protected by the debtor. The Bankruptcy Estate Property of the bankruptcy estate is…Read More
Money problems can put a strain on our lives. Over the years, I have had many people confide in me that they had contemplated suicide because of their debt problems. There are countless articles about debt problems being the cause of suicide. I try to reassure people that there are options out there to handle debt problems, namely, bankruptcy. Filing a bankruptcy may seem like the end to some, but it is designed to be the jump start you need to get a fresh start in life. Increases in Debt-Related Suicides The Farm Industry I recently read an article in the…Read More
Recently, we had an individual come to our office complaining about another attorney in the area where she had to Skype with the attorney for a free consultation about her filing bankruptcy. She said she felt rushed and only received about 15 minutes with the attorney on the Skype call. When the Skype call was over, she still had a number of questions but was left with an assistant (non-attorney) to answer those questions. If you are seeking legal advice, an attorney should be answering your legal questions not an assistant. What Makes Bond & Botes Different? If you are…Read More
New statistics reveal that the retirement outlook is not so great for almost half of Americans. According to a recent CNBC news article (citing a report from GoBankingRates), around 42% of Americans have less than $10,000 saved for retirement. Out of the 1,000 adults polled online, factors like lack of planning and earning power and longer life expectancy contributed to the failure or ability to save. Contributing Factors: The Recession and the End of Pensions While Millennials are the most likely generation to have less than $10,000 saved at this point in their working career, older Americans are also significantly…Read More
My wife shared with me recently a chapter from the women’s bible study she is doing on Wednesday night at our church, Westwood Baptist Church in Alabaster, AL. An interesting fact noted in the book Calm My Anxious Heart by Linda Dillow, is that scripture contains more references to money than to salvation. I have read the New Testament twice and can honestly say that I did not pick up on this. Obviously God wants our attention when it comes to money and the issues surrounding money. Sixteen of the thirty-nine parables told by Jesus deal with wealth and money. It…Read More
While many people hope to never need to file a Bankruptcy case, it is important to remember that the process of bankruptcy is a legal and financial tool that is designed to help individuals and families recover from economic hardship. As such, knowing the limits on how often you are able to file a bankruptcy case is valuable financial planning information. Chapter 7 Bankruptcy A chapter 7 case can provide a very large benefit by allowing you to discharge, or eliminate, nearly any kind of debt. However, the trade-off for this benefit is a strict limit on how often this…Read More
This week, I read an article on creditslips.org by Pamela Foohey who is a professor of law at Indiana University Maurer School of Law. The article discusses an upcoming law review article in the Notre Dame Law Review, Life in the Sweatbox, about the struggles consumers endure before filing bankruptcy. What Is The Sweatbox? The “Sweatbox” is defined as the financial sweatbox, or time before a person files bankruptcy. The article focuses on how long people are living in the so-called sweatbox, what they endure while they are living in it and the research confirms that people don’t file bankruptcy out of…Read More
A recent article on bankrate.com outlined 15 signs of serious debt trouble. If you recognize these signs with your financial struggles, it might be a good idea to meet with a bankruptcy attorney to discuss your financial options. What Are the Signs? Are your credit card balance increasing and/or your income decreasing? Are you paying just the minimum amounts, or less, that is required on your debt repayments? Are you applying for other debt to make the minimum payments of existing debts? For example, are you applying for a payday loan to pay off another payday loan? Is the majority…Read More