When your debt is growing and you’re living paycheck to paycheck, it can be overwhelming. Many people who’d like to file for bankruptcy protection hesitate out of fear that the legal process will cost money that they just don’t have, but there are several bankruptcy options and financial relief programs specifically designed to help low-income individuals. One of the most common bankruptcy options for low-income individuals is filing a Chapter 7 bankruptcy, also known as “liquidation bankruptcy.” A Chapter 7 bankruptcy filing lets qualified individuals eliminate most of their unsecured debts, including credit cards, medical bills, and personal loans. The …Read More ➡

If you’re overwhelmed by debt, filing for Chapter 7 bankruptcy holds the promise of a fresh financial start: Though you may need to liquidate some non-exempt assets to pay creditors, the action also allows you to discharge most of your debt. However, not everyone qualifies for Chapter 7 relief. The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 introduced a means test designed to determine whether debtors are eligible to file under Chapter 7 or if they instead must file under Chapter 13 bankruptcy, which mandates agreeing to a repayment plan rather than a discharge. The means test’s …Read More ➡

Choosing to file for bankruptcy is the first step in restoring your financial health, but it’s far from the only decision you’ll need to make.  Homeowners who want to sell their home need to analyze the right way and time to do so. This important decision will impact your legal options, your ability to protect your assets, and the course of your financial recovery. Below, we’ll provide guidance to help you through this complex situation. The first thing you need to know is what type of bankruptcy you’re going to pursue. The two options are Chapter 7 and Chapter 13. …Read More ➡

Debt restructuring and bankruptcy proceedings are different approaches to the same or similar problem: they are applied when businesses or individuals are facing acute financial distress. Each has its advantages, disadvantages, and appropriate contexts, and choosing the right option is dependent upon your specific situation.  To get a better understanding of both, let’s look at what each represents, as well as their pros and cons. Debt Restructuring Debt restructuring involves renegotiating the original terms agreed to with creditors to make debt repayment more manageable. Options include reducing the interest rate that the creditor charges, extending repayment periods, or reducing the …Read More ➡

The New Year is traditionally a time for a fresh start, and if you’ve just gone through a bankruptcy, it’s the perfect time to rebuild your financial health. As you turn to a new calendar year, think about establishing some new habits, setting financial goals, and adopting strategies that will help you achieve financial stability. Here are a few ideas to help you along the way. Start by creating a realistic, reasonable budget. Everybody talks about sticking to a budget, but few people actually sit down and write one up. Financial experts say that doing so can make a big …Read More ➡

It’s that time of year again. Holiday sales are ramping up and calling all of our names. While it’s tempting to take advantage of holiday bargains, if you’re experiencing financial difficulties – and especially if you’re considering bankruptcy — you’re much better off staying away from the stores and stepping away from the keyboard. As much money as you could save by taking advantage of deep discounts, you’re far better off taking a more conservative approach to shopping right now. Those prices — no matter how much you save — can get you into big trouble down the road. Maybe …Read More ➡

When you’re considering a bankruptcy filing, you may feel like you’re alone, but in truth, there are plenty of people in the same boat that you are: most years see about half a million people filing for personal bankruptcy, with years of economic stress leading to over a million filings.  Working with a bankruptcy attorney and knowing what to expect can alleviate a lot of the stress. Here’s a summary of the process from start to finish. Initial meeting – A bankruptcy attorney will assess your financial situation and explain all your options — including debt consolidation and negotiating with …Read More ➡

It’s common for individuals who are having financial trouble – or who have an insufficient credit history – to ask a friend, family member, or colleague to co-sign a loan. It’s also common for married couples and family members to be joint account holders on checking and savings accounts. But when someone who is financially healthy is a co-signer or joint account holder with a person who files for bankruptcy, it puts the financially healthy person in a precarious position. Here’s what you need to know about protecting yourself in this type of situation. Co-Signer and Joint Account Holder Liability …Read More ➡

There are so many rewards of being self-employed that individuals who set it as a goal often forget or dismiss the downsides. Just as applying for a mortgage is more complex when you don’t have a W-2 to prove your income, the same is true for a bankruptcy filing. If you’re self-employed and you’ve found yourself pondering a Chapter 7 or Chapter 13 filing, there are special considerations you’ll have to weigh, particularly surrounding income verification and asset valuation. When you’re self-employed, you’re responsible for your own financial records, accounts payables and receivables, and tax payments. Though entrepreneurs are incessantly …Read More ➡

Moving forward with a bankruptcy filing is a very big decision. Not only do you need to worry about the impact on your credit, but there are also very real concerns about being able to hold on to your most valued assets. While it is absolutely true that a Chapter 7 bankruptcy filing carries the risk of asset loss, it is also true that going into the process with the guidance of an experienced attorney will ensure that you have a strategy in place that maximizes your ability to protect what matters to you most. Below you’ll find information on …Read More ➡