Over 700,000 Americans submitted personal bankruptcy filings in 2017, at an average rate of 60,000 per month. Can those people who filed for debt relief really get a fresh start on a new financial life? Even with a bankruptcy on their record? Depending on which type of bankruptcy a person files...
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What Should You Do If You Forget To List Property You Own In Your Bankruptcy Papers? First, it’s important to give your attorney a complete and accurate list of all property you own. Don’t leave anything out for any reason. Don’t assume you can leave out any property because, for example, you think it’s not really yours since your spouse bought it in her name only, or it really belongs to your grandpa, or you’re thinking of giving it to your child. When in doubt, talk to your attorney and ask if you need to list it in the bankruptcy...
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Potential bankruptcy clients often ask about the types of debt that can be discharged in bankruptcy. For example, some people have the mistaken belief that only credit card debt, or personal loans, or medical bills, or taxes can be put in the bankruptcy. In fact, when filing bankruptcy the attorney should include every single debt of every type, because that’s what the law requires. And, lucky for the client, bankruptcy wipes out every kind of debt, except debts the debtor obtained by fraud or dishonest conduct. Credit Card Debt is Wiped Out in Bankruptcy Credit card debt, including department store cards, is...
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A new study released Wednesday, June 22nd found that Americans are saddled with ballooning credit card debt and are likely to end 2016 with a record high $1 trillion in outstanding balances. That will be the highest amount of credit card debt on record, surpassing even the years during and before the Great Recession. The record high was in 2008, when people owed $984.2 billion on their credit cards. So after a couple of years in which consumers were being more frugal and working on paying off credit card balances, they have used cards at an ever-increasing rate. Importantly, people have...
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The ability to strip off a second mortgage in bankruptcy is one of the most powerful tools bankruptcy law provides. In a Chapter 13 bankruptcy you can strip off, or avoid, a second mortgage, home equity line of credit, or other junior lien and never owe a penny on that debt again. That means your obligation to pay back that second mortgage is permanently discharged, i.e. wiped out. The second mortgage lender can never try to collect from you after the Chapter 13 case is done. Also, and equally important, the lender must re-convey the second deed of trust...
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