Before you can file a personal bankruptcy case, you have to go through what for all practical purposes is nothing more than a bureaucratic formality. However, it is a strict legal requirement that can cause unnecessary headaches if not done correctly, so it's important to understand it. It's the Law Here is what the U.S. Bankruptcy Code says you … [Read more...]
What Is a “Fraudulently Incurred” Debt?
April 1, 2013 by Leave a Comment
Which Debts are “Fraudulent”? The discharge—legal write-off—of a debt can be challenged if at the time the debtor received the credit — the “money, property, services, or an extension, renewal, or refinancing of credit”—it was a result of his or her intentional misrepresentation, and the creditor relied on that misrepresentation in extending the … [Read more...]
Don’t Give Your Car Away or Repay Your Friend Before Filing Bankruptcy
March 25, 2013 by Leave a Comment
Bankruptcy law has traps for the unwary as any area of law, and here are two very important ones. They are traps because they seem to not only go against common sense, but against what would otherwise be the honorable and the morally right thing to do. These two have to do with transactions—transfers of your possessions and your payments on … [Read more...]
The All-Important “Automatic Stay”
March 11, 2013 by Leave a Comment
The “automatic stay” goes into effect the moment your bankruptcy case is filed. It is a provision in the bankruptcy law which stops virtually all efforts by your creditors to chase you or your property at the moment of filing. “Stay” is the legal word for “stop.” It is “automatic” because the very act of filing your case “operates as a stay” … [Read more...]
Chapter 7’s Treatment of Secured Debts
February 25, 2013 by Leave a Comment
A Chapter 7, sometimes called “straight bankruptcy,” provides you with a number of important advantages with your secured debts. Those are debts in which your obligation to pay is secured by collateral, specifically by certain rights that the creditor has over your collateral. If you do not stay current on the agreed payments on the debt, the … [Read more...]
General Unsecured, Secured, and Priority Debts
February 5, 2013 by Leave a Comment
All of bankruptcy makes a lot more sense if you know which of your debts fit within which of these three categories of debts. Bankruptcy law generally treats your creditors the same, except when those creditors are legally different. A handy way to describe how creditors are legally different is to say whether a debt is a “general unsecured debt,” … [Read more...]
When Creditors Don’t Comply with Post-Discharge Rules
January 11, 2013 by Leave a Comment
When you file for protection under Chapter 7 of the federal bankruptcy laws, you are supposed to be protected by the automatic stay, which prohibits creditors from calling, writing or taking legal action to collect the debt. Unfortunately, even if you have completed a Chapter 7 filing and discharged your debts, you may still face harassment from … [Read more...]
Protecting Your Assets in a Bankruptcy
December 20, 2012 by Leave a Comment
If you are considering filing for bankruptcy protection, but are afraid that you will lose all your property, think again. Under the bankruptcy laws, there are state and federal exemptions on property, so that you can discharge or reorganize debts without fear of losing everything. It can be difficult, however, to determine what property you can … [Read more...]
Comparing-Personal-Bankruptcy-To-Commercial-Bankruptcy
October 23, 2012 by Leave a Comment
If you are a small business owner, and your business is struggling, you can feel the effect in your personal finances and your personal life as well. Bankruptcy can provide some relief, but you may be uncertain whether you should consider a personal bankruptcy petition or a business/commercial bankruptcy filing. This blog post addresses some of the … [Read more...]
Family-Farming-And-Bankruptcy
October 8, 2012 by Leave a Comment
Though most bankruptcy filings are under Chapter 7, Chapter 11 or Chapter 13, there are distinct advantages available to family farmers in a bankruptcy petition under Chapter 12 of the federal bankruptcy laws. This blog post addresses who qualifies to file for protection under Chapter 12, as well as some of the differences and similarities between … [Read more...]
