Many clients ask me if the debt that's discharged (eliminated) in bankruptcy will stay gone forever.
If you think "payday" loans are bad, consider a loan of $5,000 that requires you to pay back $42,000. Yes, that can happen in California.
The owner of a payday lending operation was sentenced to more than 16 years in prison, and the general counsel (attorney) for the business was sentenced to 7 years.
I'm often asked if someone is liable for their husband's (or wife's) debts. The short answer is "No". Let's explore the rest of the answer.
The credit industry would have you believe that filing bankruptcy is so bad that you should do it only as a last resort, making bankruptcy your last option. The credit industry spends a lot of money to get you to believe that. But for many people, nothing could be further from the truth. Why do I say that?
Nerdwallet published the best article about bankruptcy that I've ever seen. Take a look and see if it applies to you.
Do you need to eliminate crushing debt, stop lawsuits, or stop a foreclosure? Our Congress provided bankruptcy as a financial tool for those purposes. Wouldn't it be wise to see if it could work for you?
Clients who are preparing to file bankruptcy often tell me that many of there debts are "charged off", thinking that they don't owe them any more, and ask me if they still need to file bankruptcy. Let's take a look at that.
Why do some people think this is true? After all, you read about large corporations that owe many millions filing bankruptcy. Whatever the reason, it's just not true. Let's take a look as what is true…
In the article Ten ways life is like jiu jitsu, #8 is Use leverage, not muscle. I might make that item #1 for what to do if you have financial problems. Most of us try to "muscle through" financial problems – working harder and longer, draining our retirement accounts, even to the point of destroying our health and relationships – before we realize it just isn't working and we need another plan, one with leverage.
If you expect to inherit something of significant value, and you also have significant debts, bankruptcy might be a way to preserve that inheritance instead of having much or all of it go to your creditors. Let's take a look at how this might work. (more…)
If someone in your family died recently, you might get a call from someone trying to collect a debt your family member owed. Let's take a quick look at this practice.
There's nothing simple about divorce and bankruptcy. We'll peel off one leaf of that very large subject and see what can happen if someone files bankruptcy after a divorce with a property settlement. (more…)
When your parents die owing money, are you responsible for paying that money back? (more…)
Bankruptcy provides a Fresh Start for many people, but it might not get rid of some of your debts. Why not? Because Congress felt that it was best to not allow some types of debts to be discharged (gotten rid of) in bankruptcy. We'll leave the discussion of whether Congress chose wisely about that for another time. (more…)
You're in financial trouble, have considered filing bankruptcy, but haven't taken any steps toward it. What's holding you back? (more…)
For many people, bankruptcy is something to be avoided at (almost) all costs. Is that a good policy for you to follow? Let's take a look.
If you filed a Chapter 7 bankruptcy, the one that gets rid of your debts quickly, but forgot to list a debt you owe, what happens? Will you have to pay that debt? Let's take a look…
Scammers are sending emails threatening jail if you don't pay some debt.
Bankruptcy as an opportunity? And a "window" for it? What's that about? (more…)