Category Archives: Bankruptcy
Prefiling Mistakes That Can Derail Your Bankruptcy Case
Bankruptcy, whether it be in the form of a Chapter 7 liquidation or a Chapter 13 debt reorganization, can provide a fresh start for individuals struggling with overwhelming debt. However, there are several errors debtors commonly make prior to filing their petition that can jeopardize the success of their case as well as trigger other […]
Bankruptcy Options for Small Businesses in Financial Distress
Navigating financial challenges is a common part of running a small business. But when the burden of debt becomes too heavy to bear, owners have legal alternatives to shutting down the enterprise. The primary bankruptcy options that allow small businesses to stay in operation are Chapter 11 and Chapter 13. Which option is best suited […]
What Is a Willful and Malicious Injury That Can Exclude a Debt from Bankruptcy Discharge?
Bankruptcy is a legal remedy that allows individuals and businesses to discharge most of their debts. However, there are some types of debts that are not dischargeable in bankruptcy, including those that are based on willful and malicious injury by the debtor. This exclusion of these debts in Chapter 7, Chapter 11 and Chapter 13 […]
Mortgage Relief Companies Can Put Debtors in Even Worse Financial Shape
If you are facing a default on your mortgage that could lead to foreclosure of your home, beware of the multitude of companies offering mortgage loan relief. These entities are often ineffective in helping resolve critical debt situations, and they can sometimes make things worse, whether through inefficiency, mismanagement or the perpetration of scams. Mortgage […]
Subchapter V Can Protect Personal Assets During a Small Business Wind Down
Small business is a critical component of the U.S. economy. However, starting a business is risky and many ventures fail. Startups and even businesses of some duration may be partially capitalized by the owners’ personal funds and debt obligations. When the business ceases to operate, the owners can be left with crushing debt burdens. Fortunately, […]
When Can a Creditor Get Relief from the Bankruptcy Automatic Stay?
One of the most powerful features of the bankruptcy code is the automatic stay that goes into effect once a debtor’s petition is filed in court. The automatic stay prevents creditors from taking further action to enforce most debt obligations. The purpose is to give the debtor some time to reorganize or to discharge debts […]
Pros and Cons of Debt Settlement Instead of Bankruptcy
Consumers who are overwhelmed by debt and cannot make their payments may choose between filing bankruptcy or settling and consolidating their debts privately. Each of these measures has advantages and disadvantages that should be carefully considered before deciding which path to take. Debt settlement and consolidation require negotiation with creditors. This can be done directly […]
Claiming the Homestead Exemption in a California Bankruptcy
When a debtor files a Chapter 7 petition, the U.S. bankruptcy trustee is authorized to sell certain of the debtor’s assets to pay the creditors. However, much if not all of those assets can be shielded from liquidation through the use of exemptions allowed by federal or state law. One of the important exemptions for […]
U.S. Supreme Court Rules Another Person’s Fraud Can Bar a Debt Discharge
Bankruptcy law has long barred the discharge of debts when the debtor has committed fraud. The rationale is that people should not be rewarded for the negative consequences of their unlawful actions. Now, the U.S. Supreme Court has settled the question of whether the fraud exception can apply when someone other than the debtor is […]
How Long Does it Take to Restore Your Credit After Bankruptcy?
Some people would rather struggle with debt — perhaps for years — because they believe that filing for bankruptcy will destroy their credit rating. While it is true that bankruptcy has an initial negative impact on your ability to get credit, the long-term effects of bankruptcy are beneficial. Bankruptcy is in fact designed to give […]
