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  • How to Know When it is Time to File for Bankruptcy

    For many people, “bankruptcy” is a bad word. It often has connotations of failure or an inability to control one’s own financial habits. These connotations are untrue and harmful – individuals and companies use bankruptcy as a tool to manage their outstanding debt for many different reasons. More often than not, the circumstances that lead to bankruptcy are beyond the filer’s control, such as catastrophic health care costs.. But the negative stereotype that many have about bankruptcy may keep deserving people from seeking the relief they are entitled to. If you are only able to make the minimum payments on your debts and you find yourself watching your debts increase or remain stagnant despite these payments, it might be time to file for bankruptcy. If…

  • What Not to Do When you File for Bankruptcy

    When you file for bankruptcy, there are certain things you need to do like complete a credit counseling session. You also need to make sure you are eligible for the bankruptcy chapter you file. There are also certain things you should do when you are working through the bankruptcy process, like create a household budget and educate yourself about the bankruptcy process. There are also things you should not do when you are completing a bankruptcy case. Certain mistakes can make your bankruptcy more difficult, while others can actually result in a dismissal of your case or criminal charges. Talk to your lawyer about mistakes to avoid during the bankruptcy process and how you can make the process as straightforward for yourself as possible. Do…

  • Can the State Harass Me Over Child Support After a Chapter 13 Bankruptcy?

    When you file for bankruptcy, the automatic stay goes into effect. This is a stop on all debt collection attempts from your creditors. It is meant to give you some “breathing room” as you work through the bankruptcy process. There are two notable exceptions to this stop: collection attempts for child support and collection attempts for alimony. If you are delinquent in your payment of either of these orders, the state is authorized to take actions to collect the money you owe. These actions can include wage garnishment and seizure of your tax return or lottery winnings.  It is Not Harassment; It is the State Ensuring your Children are Supported The reason why the automatic stay does not halt child support and alimony payments is…

  • How Does a Divorce Settlement Affect a Chapter 13 Bankruptcy?

    There are many ways your divorce settlement can affect your Chapter 13 bankruptcy and vice versa.  Completing Chapter 13 bankruptcy is a lengthy process, typically taking three to five years to complete. During this time, many aspects of your life may change, including a possibility of divorce. If you are working through Chapter 13 and considering divorce, or if you are going through a divorce proceeding and are considering filing for bankruptcy, talk to your bankruptcy lawyer about the specific ways you can expect the divorce to affect your bankruptcy. Below are a few general ways bankruptcy intersects with divorce when one spouse files for Chapter 13 bankruptcy on his or her own. The Divorce Court Cannot Divide Assets in the Bankruptcy Estate When you…

  • Misconceptions About Chapter 13 Bankruptcy

    When most people file for bankruptcy, they file under Chapter 7 of the U.S. Bankruptcy Code. However, there is another alternative. Chapter 13 is available to debtors who have slightly different circumstances than the average bankruptcy filer, and while there are a few more obligations to filing Chapter 13, it may benefit you more than a Chapter 7 bankruptcy. Myth: A debtor must have very low income in order to file  Chapter 13.  False – a Chapter 13 filing is actually referred to as a wage earner’s plan.  You must have enough income to be able to make monthly payments on your plan – without it, a Chapter 13 plan is not viable.  If you have very low income, a bankruptcy professional will likely counsel…

  • When you are Facing Bankruptcy, You Need to be Completely Honest with your Lawyer – No Matter How Embarrassing

    Your lawyer is a professional. When you work with a bankruptcy lawyer, you trust that lawyer to help you reduce your debt by advising you through each step of the bankruptcy process. Each bankruptcy case is unique, and a strategy that helps one individual get out of debt will not necessarily help somebody else. Because each bankruptcy case requires such specialized attention, clients need to be completely transparent with their lawyers to ensure that they receive effective, customized bankruptcy strategies. It can be embarrassing to discuss certain details of your financial or personal life with your lawyer. Although you might be tempted to conceal certain facts, this can actually harm your case. Be honest with your lawyer at all times. This is the only way…