Save Money Today

Many families who struggle to make ends meet talk about establishing a family budget and reducing expenses. Some suggest “sacrificing” and “tightening the belt” to save money. While admirable, sometimes it is not necessary to do without in order to save money. Below are three easy ways to immediately save money without changing your lifestyle. Pay TV The entertainment world …

Statute of Limitations and Foreclosure

Every state has a statute of limitations for filing a foreclosure action. A statute of limitations is a state law that tells the lender that a foreclosure must be filed within a certain time after default on a promissory note. If the foreclosure is not filed by that date, it is not valid and may be stopped or dismissed by …

Number of Bankruptcy Cases Drop

The total number of bankruptcy cases filed in the United States fell 14 percent from a year ago, according to a recent press release from Epiq Systems, Inc. Bankruptcy filings in January 2015 totaled 59,037 compared to 68,271 cases filed in January 2104. The number of consumer filings declined 13 percent and commercial filings are down 16 percent. Total commercial …

How Long You Must Stay in Chapter 13 Bankruptcy

The chief feature of a Chapter 13 bankruptcy is the repayment plan. A Chapter 13 bankruptcy gives a debtor time to restructure personal finances through monthly payments. How much time is the subject of today’s post. 100% Repayment In general, a proposed Chapter 13 repayment plan must last between three and five years (36 and 60 months). However, there are …

Contingent, Unliquidated and Disputed Debts, and Why It Matters

During your bankruptcy you will account for your debts on official bankruptcy forms. The bankruptcy code requires you to list all debts and indicate whether the debt is contingent, unliquidated, or disputed. Below is a quick primer on these types of debts and why you should accurately list the debt. Contingent debt A contingent debt is a debt owed to …

How Bankruptcy Affects Your Credit Score

Almost every potential bankruptcy client will ask, “How will filing bankruptcy affect my credit score?” Unfortunately, this important question is often answered flippantly, as in: “If you need to file bankruptcy, isn’t your credit already ruined?” or “What do you need credit for?” Instead, of brushing aside this question, let’s tackle it head-on and examine what happens to a credit …

1970s Teen Idol Files for Bankruptcy Protection

Is it hard to file bankruptcy? You bet. Is it hard to file bankruptcy when you have sold of 30 million records? Or starred on a hit television show? Or been a teen heartthrob? Or been featured in books, magazines, trading cards, and lunch boxes? Oh, yeah. David Cassidy, former teen idol and star of the ‘70s TV series “The …

Practical Concerns Regarding Wage Garnishment and Bankruptcy

When an individual files a personal bankruptcy case, the bankruptcy automatic is triggered and most collection actions, including garnishments against the debtor, must immediately cease. Further creditor activity generally violates the automatic stay protection – even where the creditor is unaware of the bankruptcy filing! While the automatic stay casts a long shadow of protection, it is not magical. As …

A Second Bankruptcy, the Automatic Stay, and a Foreclosure

In 2005, Congress, with help (and influence) from creditor lobbyists, chose to add restrictions to the automatic stay and make it harder for a serial filer to get debt relief. Section 362(c)(3)(A) provides that if an individual debtor files a second bankruptcy case within a year of dismissal, the automatic stay terminates “with respect to the debtor on the 30th …

Tax Debt Tolling

Despite common myths, personal taxes are dischargeable in bankruptcy, but only if the following conditions are satisfied: •    The taxes are income taxes; •    There is no evidence of fraud or willful evasion; •    The debt was originally due at least three years before the bankruptcy filing (Three Year Rule); •    A tax return for the debt was filed at …