Bankruptcy

What property can I keep in a Chapter 7 bankruptcy?

Millions of Americans will elect to pursue a Chapter 7 bankruptcy in the coming year in order to free themselves from crushing debt.  The good news for potential Chapter 7 filers is that some or all of your property may be protected from liquidation during bankruptcy under Ohio’s exemption laws.    Exemptions allow you to shield certain property from your creditors, such as your personal home and car.  Our Read more . . .

One of the biggest concerns we here from people when they are considering filing for bankruptcy is whether they will ever be able to borrow money again. For a lot of people considering bankruptcy, they’ve worked hard to build a great credit score and are reluctant to let that go despite their struggle to keep their heads above water. While it is definitely something to think about beforehand, just because you file for bankruptcy does not mean that you can never borrow money again. It is absolutely possible to rebuild your credit after filing for bankruptcy.

Will you be liable for debts incurred by another who manages your money?

Maybe you don’t have the time to manage your finances or maybe you trust someone close to you to do a better job. Whatever the reason, if you give someone the legal authority to handle your money, you should do so with caution. One member of the National Hockey League is dealing with the repercussions of allowing his parents to manage his money.

If you are struggling with debt, you are not alone. In this economy, millions of people in the United States are having trouble paying their bills. Whether it was a job loss, illness, divorce or other matter that has affected your ability to make ends meet you do have options. Two of these options are

Is student debt a problem for baby boomers?

Although we think of student debt as affecting new graduates and young adults, research shows that a surprising number of baby boomers are still carrying the weight of debt from their educations. According to the Federal Reserve Bank of New York, the number of borrowers 60 years of age and older was up from 700,000 people in 2005 to 2.2 million in 2014.

Furthermore, the Read more . . .

What are the differences between Chapter 128 and bankruptcy?

Chapter 128 is an old, but still relatively unknown, alternative to bankruptcy available to the people of Wisconsin. It is a voluntary debt consolidation plan that works through the Wisconsin Circuit Court system and has elements that distinguish it from both consumer credit counseling plans and bankruptcy.

Differences between Chapter 128 and Bankruptcy

There are two major distinctions between Chapter 128 and bankruptcy. The first is that bankruptcy is federal and Chapter 128 is strictly limited to the State of Wisconsin. The second is that Chapter 128 enables you to pay your debts through consolidation, not erase them through bankruptcy

Did the Federal Government's overhaul of bankruptcy laws affect Chapter 128 proceedings?

No.

Should a married couple file for bankruptcy together?

For some people, being married means doing everything together. Making a home, having children, filing taxes and discussing every minute detail in between might be the best way to go for these folks. Luckily, most people are much more realistic and understand that being married does not cause one to lose his or her personal autonomy. This should be kept in mind during good times and in bad. One of those bad times can be when filing for personal bankruptcy becomes necessary.
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 Why are so many U.S. bankruptcies traceable to high medical expenses?

Although even more extravagant claims have been made, it is estimated that U.S. indebtedness as many as three out of five bankruptcies in this country are attributable to medical calamities.

What will it actually cost me to file for bankruptcy?

If you are considering filing for bankruptcy you are likely overwhelmed with debt. So much so that the thought of one more bill is enough to put you over the edge. So, when someone tells you about the fees associated with bankruptcy is causes you to pause. The bad news is yes; it does cost money to file for bankruptcy. The good news is it bankruptcy is a relatively cheap option in comparison to the amount you owe creditors.

How is it possible for people to blow through millions, or even billions of dollars?

It is counterintuitive that people who win the lottery or inherit tremendous amounts of money will end up bankrupt and yet, according to research studies, that is precisely what frequently occurs. When people win the lottery, their lives are changed forever, and often not for the better. Once the initial exhilaration wears off, typically within a few months, a new reality sets in and it is one that can be difficult to adjust to and manage.

Although the odds of winning the lottery are, as we're all well aware, extremely slim (something around 1 in 292 million), there are lessons to be learned from those who handle sudden wealth badly and suffer the consequences.  Some problems associated with acquiring sudden wealth, whether through winning the lottery or by other means, may be unpreparedness and susceptibility.
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When it comes to debt relief, there are good guys and bad guys. Unfortunately, the number of scammers entrenched in the debt relief industry is growing, and well-meaning Americans are facing disastrous consequences for working with so-called “credit counselors” and “consolidation specialists” -- all of whom are out to make a quick buck.

As practitioners of bankruptcy law, we know the options available to consumers -- and we are here to help. However, as one recent case points out, many debtors -- unaware of their choices -- turn to unscrupulous con artists for help with their fledgling financial situation, only to end up worse off than when they started.

Earlier this month, the federal Consumer Financial Protection Bureau (CFPB) reigned victorious over one such “debt relief” company, referred to in pleadings as “Morgan Drexen.” And, the verdict is hardly one to scoff at: $173 million.

According to the details of the lawsuit, Morgan Drexen offered clients “bankruptcy” services -- promising to help debtors avoid bankruptcy, or to minimize their exposure once the process began. However, Morgan Drexen performed “little to no” work on the clients’ files, and is even alleged to have falsified bankruptcy pleadings on clients’ behalf.

In essence, struggling debtors relied on the services of this “debt relief” company, and were ultimately taken advantage of in the process. If you are facing a difficult financial situation, the best resource is an experienced bankruptcy attorney that can offer realistic advice and reasonable solutions. As always, if it sounds too good to be true, it probably is.

For anyone defrauded by Morgan Drexen, the CFPB promises to forward letters to all former clients explaining their options moving forward. The letters will contain information as to whether certain debts have been repaid (or not) and what debtors need to do to rectify the situation.