Tag Archives: bankruptcy
Costly Mistakes to Avoid Prior to Filing for Bankruptcy
When you’re in severe financial distress and considering bankruptcy, don’t let desperation overrule good judgment. Certain actions or omissions taken in the months leading up to filing for bankruptcy can hurt your chances for a successful outcome. Approaching things with a level head will help prevent costly mistakes that can come back to haunt you. […]
Repairing Your Credit After Declaring Bankruptcy
Many people try to avoid bankruptcy because they fear it will ruin their credit rating. While it is true that bankruptcy takes an immediate toll, it does not last forever. Your credit report will show your bankruptcy for seven or 10 years but the impact of the bankruptcy lessens over time. And with your debt […]
What is the Trustee’s Role in a Chapter 7 Bankruptcy?
When a person or business files for Chapter 7 bankruptcy, the petition and related paperwork provide the court with information about the debtor’s assets and liabilities, income and expenses and general financial condition. The court then assigns a trustee, whose role is to review the bankruptcy petition and other documentation and to supervise and administer […]
Using Bankruptcy to Avoid Home Foreclosure
When default on mortgage payments leads the lender to threaten foreclosure, you need to take prompt action to protect your home. Bankruptcy is an effective way to block foreclosure while allowing you to devise plans for getting back to financial solvency. Filing for bankruptcy protection under Chapter 7 or Chapter 13 causes an automatic stay […]
What Can Cause Your Chapter 7 Petition to be Denied?
Chapter 7 bankruptcy offers consumers a chance to be relieved of crushing debt and to get a fresh financial start. However, the law is not intended as a cover for fraud, deception or other conduct abusive of the bankruptcy system. Debtors who seek the law’s protection are held to high standards of good faith and […]
How Does Filing for Bankruptcy Affect Your Credit Rating?
If you are facing insurmountable debt, bankruptcy may be the best option for righting yourself financially and getting a fresh start. The downside is that a bankruptcy filing will stay on your credit report for a lengthy period of time. However, there are ways that bankruptcy can put you on a better financial footing that […]
Tips for Dealing with the Emotional Stress of Bankruptcy
Of course, no one wants to go into bankruptcy, and the stress surrounding the decision to do so is understandable. But when you are faced with crushing debt, harassing calls from collection agencies and continual financial uncertainly, you may be left with no other logical choice. You need to know that you are not alone. […]
How Chapter 13 Helps You Pay for Your Bankruptcy Attorney
When you are considering filing for bankruptcy protection, you have to decide whether the best option is Chapter 7 or Chapter 13. Either way, the assistance of a qualified attorney is vital to a successful outcome, which raises another question. How do you pay legal fees when you’re bankrupt? The answer may lie in the […]
New Law Increases California Homestead Exemption up to $600,000
There is good news for California homeowners who are considering filing for bankruptcy protection. A new state law raises the homestead exemption — the amount of home equity that can be shielded from creditors in a Chapter 7 or Chapter 13 — to a minimum of $300,000 and a maximum of $600,000. The increase was […]
Using Cramdowns to Advantage in Subchapter V Bankruptcy
Subchapter V is a simplified form of Chapter 11 bankruptcy that was created to make the reorganization process more accessible to small businesses. One advantage of Subchapter V is the reduction of a company’s debts through use of a procedure known as a cramdown. Subchapter V bankruptcy has become especially important during the COVID-19 pandemic. […]
