Your bankruptcy case will make much more sense if you know the roles of the people involved, starting with debtor, creditors, and clerk. The Debtor This is the “person” filing the bankruptcy case. An individual can file a case, as can a married couple. The ... Read More »
Chapter 7 Bankruptcy Can . . . Remove a Judgment Lien
Besides legally writing off all or most of your debts, "straight bankruptcy" can often remove judgment liens from the title of your home. Chapter 7 bankruptcy usually has two main goals, and usually accomplishes them. #1: Filing the bankruptcy case immediately stops your creditors from ... Read More »
Debts Not Listed in Your Bankruptcy Documents
If one of your creditors is not included in your "schedules" you risk continuing to owe that debt after your bankruptcy is finished. Legal Obligation to List All Creditors Overall you are required by law to list all your debts and their creditors on your bankruptcy schedules. You can’t ... Read More »
New Thresholds for a “Luxury” Purchase or Cash Advance to Be Presumed Fraudulent
Creditors will be a little less likely to challenge the writing off of recent uses of credit. As of April 1, 2016 creditors will have slightly harder time showing that recent credit purchases or cash advances were fraudulent and so can’t be written off (“discharged”) in ... Read More »
A Fresh Start against Your Co-Signer
Through bankruptcy, you may be able to and want to pay a co-signed debt. If not, you need protection from that debt and from your co-signer. A friend or relative may have helped you earlier by co-signing a debt for you. But now you find yourself needing relief from all or most of your debts ... Read More »
Bankruptcy Timing and the Holidays: “Preference” Payments
You may have extra motivation and greater ability to repay a personally important debt this time of year. But maybe you shouldn’t. Careful about Paying a Favored Creditor Around the holidays you may be extra motivated to pay back a personal loan. The relative or friend may be in real ... Read More »
Mistakes to Avoid: Paying a Favored Creditor Before Filing Bankruptcy
Doing what you believe is the right thing can backfire, if you pay a special creditor before you file bankruptcy. “Preference” Payments Bankruptcy law focuses for most purposes on what you own and who you owe at the moment your bankruptcy case is filed. But there are some limited ... Read More »
Making Sense of Bankruptcy: Avoid Dangerous “Preference” Payments
Be careful about trying to be nice and paying back relatives and friends in order to keep them out of your bankruptcy case. Here’s the sentence that we’re exploring today: You may be tempted to pay certain special creditors before filing bankruptcy—such as relatives or ... Read More »
