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.
In a move very likely to have a negative local economic impact on both Anderson and Knox Counties, multiple news outlets confirmed that the Tennessee Valley Authority voted Thursday to retire both the Paradise Unit 3 and Bull Run coal power plants within the next few years. The Southern Environmental Law Center call the decision “a step in the right direction.” An Over-Reliance on Coal Power Plants “For too long, people who live and work in the Valley have borne the health, environmental and financial burdens of TVA’s over-reliance on coal,” said Amanda Garcia, senior attorney in SELC’s Tennessee office. “By…Read More
A week ago, one of the members in my family called me to tell me that her mortgage company asked her to stop making her mortgage payments so she could qualify for a specific type of mortgage modification. She asked me whether she should do that. The answer is NO. What Will Happen If I Stop Making My Mortgage Payments to Get a Modification? You should not stop making payments and if a mortgage company representative tells you to do so, they are wrong. If you stop making your mortgage payments, it will result in serious negative consequences for you,…Read More
One of the most common concerns my clients have is whether or not filing a bankruptcy case will affect their job. The short answer is this; no, filing a case should not have any impact. The Bankruptcy Code at 11 U.S.C. §525 specifically prohibits employers from discriminating against any person who has filed for bankruptcy relief. Your employer would be breaking a federal law if they fire you or discriminate against you as a result of your bankruptcy. Protection Against Discriminatory Treatment (a) Except as provided in the Perishable Agricultural Commodities Act, 1930, the Packers and Stockyards Act, 1921, and…Read More
What is a Bankruptcy Petition, what are the most common types of Bankruptcy and what happens once your case is filed with the Bankruptcy Court? A Bankruptcy petition is a collection of forms also known as schedules that disclose all of your financial information to the Bankruptcy Court. These forms will list all of your assets (real and personal property), monthly income and expenses and most importantly the liabilities and debts you wish to eliminate. Your bankruptcy case starts when you file the petition with the clerk of the bankruptcy court. What Happens Once My Bankruptcy Petition is Filed? Once…Read More
When discussing bankruptcy, you will often hear references to the “trustee of the case.” The trustee is a court-appointed individual that oversees your bankruptcy case. While many debtors have an initial fear of the trustee, it is generally unwarranted. A trustee is not attempting to sabotage your bankruptcy case. In all likelihood, the trustee would prefer for your case to succeed just as much as you, although your opinions of the most beneficial outcome may differ somewhat. Role of the Trustee Every consumer bankruptcy case that is filed will be assigned to a trustee. Contrary to popular perception, the trustee…Read More
What Is Overpayment? Overpayment of unemployment benefits are subject to discharge in both chapter 7 and chapter 13 bankruptcies. The overpayment of unemployment benefits are not given special protections, even if they are owed to the state. Therefore, they can be discharged but not always. An unemployment overpayment is not a debt that is listed as exempt from discharge. Filing for bankruptcy can provide significant relief from the collection efforts of the state. The automatic stay will help stop collection efforts from the state to pay back the unemployment benefits. When Does Overpayment Occur? Overpayment of unemployment can occur when…Read More
You’ve heard the commercials: If you owe $10,000.00 or more to the IRS, CALL NOW. Don’t contact the IRS alone. Or If you owe more than $5,000.00 in credit card debt, CALL NOW for help in consolidating your credit cards. Be Aware of These Consolidation Companies While these solutions may work for some, you should be aware of some important points about debt consolidation: You Will Pay a Consolidation Fee These consolidation companies are not free! There is a fee and more often than not, the first several payments (or more) that you send in may be used for the…Read More
There are four costs to consider when filing for bankruptcy. The four fees are credit counseling/personal financial management fees, filing fee, attorney’s fee and the trustee’s fee for administrating your case. Credit Counseling/Personal Financial Management Fees There are two counseling courses that must be completed with every bankruptcy. A credit counseling course must be completed before you file bankruptcy. When you complete this credit counseling a certificate will be filed with your bankruptcy petition proving you completed the course. This course focuses on your current finances and spending. The second course, personal financial management must be completed after you file…Read More
Purchasing a new car is rarely an enjoyable experience. Just choosing which car you want is hard enough, let alone dealing with car salesmen, financing companies, and calculating how much you can actually afford to spend. As of December 2018, the average loan on a new vehicle is approximately $32,000, an increase of $6,000 when compared to the average loan amount in 2010 at $26,000. The higher the loan amount, the higher the interest paid, which almost doubled from 2010 to 2018, from $2852 to $5,555. Before you rush out to purchase that new vehicle, keep the following in mind:…Read More
Dina Lohan filed a petition for Chapter 13 Bankruptcy in September 2018. But on the eve of Christmas, she received a lump of coal from the presiding bankruptcy judge in the form of a dismissal of her case. The mother of the infamous actress, Lindsay Lohan, filed for Chapter 13 relief in an attempt to save her Long Island mansion from being sold in a foreclosure auction. Her case was dismissed for a variety of reasons including failure to file required documentation of her income and tax returns with the bankruptcy court. But one of the most important reasons for…Read More