By Scott Riddle Posted in Bankruptcy Basics,Creditor Law,Debt Collection & ForeclosureOne of the most frequently asked questions on the various debt and bankruptcy forums is whether a person is still responsible for debts their former spouse agreed to pay (or was ordered to pay) in a divorce settlement or decree. For example, a Court may divide the debts and order the husband to pay the… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7This is another question that comes up more frequently that people might think. “I am facing financial problems, so how does it make sense for me to go out and borrow more money or use what little savings I have on an old used car???” Now…I said the question comes up frequently but the answer… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7,Debt Collection & ForeclosureIn a previous post we discussed in detail the math that applies when a Chapter 7 Trustee is deciding whether or not to sell a house. In short, unless there is significant equity over and above exemptions, rarely will a Trustee be interested in taking a second look at the house. There is simply no… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7Yes, a Judge can deny a reaffirmation agreement even if it is a voluntary agreement between lender and borrower. We discussed the basics of reaffirmation agreements in this post, and we also have posts about car reaffirmations and house reaffirmations. A reaffirmation agreement is, in theory, a voluntary agreement between you and a lender in… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7“Hate” may be a strong word, and it almost always is, so let’s change it to “dislike” or “disagree with” Dave Ramsey. If you do not know who Dave Ramsey is, you might not be interested in this post, but you can read his biography here. In short, he is a “financial planning guru” (my… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7For the past couple of years one of the benefits of being in the 11th Circuit states (Georgia, Florida and Alabama) is that you could strip an unsecured junior lien from a house. These states were the only states in which this was available and it was because a higher court approved it. This all… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Debt Collection & ForeclosureThe Governor’s Office of Consumer Protection recently shut down Zenith Financial Group, a Metro Atlanta-based collection agency. As part of the agreement, Zenith agreed to cease collections on $3.1 in purported debt. Zenith was accused of violating the Georgia Fair Business Practices Act by threatening consumers with arrest or imprisonment and concealing that its collectors… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7No…not Debtors’ Prison (unless it is child support or some taxes). It is not all that unusual that someone who files a Bankruptcy case goes to jail later, or someone already in jail or prison wants to file a Bankruptcy case. For example, take the person who is in financial trouble and gets behind on… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7,Debt Collection & ForeclosureThis question comes up fairly regularly. Is it a good idea, or totally useless, to tell your creditors that you are planning on filing for Bankruptcy, have hired a Bankruptcy lawyer, or you are going to file for Bankruptcy at some point. There is really no firm answer either way as it depends on the… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Creditor Law,Debt Collection & ForeclosureAmong the biggest causes of Bankruptcy is divorce. Not only can it lead to significant legal fees, the spouses usually find themselves paying for two households rather than one while still making the same combined income. One party may not have the ability to keep paying for their house on a single income. The problems… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7If you find that your Bankruptcy case is being reviewed by the United States Trustee it is not necessarily a bad sign but it is something you will want to discuss with your lawyer. It might seem especially scary if the first you hear about it is a notice of a Rule 2004 Examination or… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7The Bankruptcy Code has specific code sections that list the requirements to be eligible to file a Bankruptcy case. What is not included in the list of requirements is that the individual is a United States Citizen, or even in the country legally. Generally, if you have a residence or business in the United States,… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7We have written quite a bit about student loans in this blog (which you can access with the student loan tag), and we will continue to do so. It is one of the biggest financial problems we have in this country. Recent data shows that it is not only young people who are burdened with… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7,Debt Collection & ForeclosureOccasionally we see loan agreement or other contracts that have a provision in them that says the borrower will not file for Bankruptcy or that the Borrower has waived their right to file for Bankruptcy. If you sign a contract with these terms, the other party may believe you are barred from filing a Bankruptcy… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7The title of this post is probably a little inaccurate, because we all know financial problems naturally lead to stress. Maybe it should be avoid “most” or “some” of the stress. Whether one is starting a plan to pay off their debt, following a Dave Ramsey plan, or they have to consider a Bankruptcy case,… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7No, you will not lose your family pet in a Bankruptcy case. Technically, pets are “personal property” that should be listed in Schedule B. Of course, most of us with pets view them more as members of the family than something like an end table. My goldens and labs have had the run of my… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7If one person files a Bankruptcy case, either Chapter 7 or Chapter 13, and receives a discharge of some or all of their debt, is their non-filing spouse protected for any joint debts discharged in the case? The answer is, unfortunately, no. Only an individual who actually files their own Bankruptcy case gets the benefits… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7A common question we often get is whether when one spouse files for Bankruptcy, the other spouse has to file too. The answer is no, unless there are other reasons the spouse needs to file. In most facets of Bankruptcy debtors are treated as individuals with their own debts and assets, even in joint cases… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7Occasionally, our clients are surprised with how much work that goes into filing a Bankruptcy case and with how much effort they need to put in to complete the initial filings. This is simply one of the unavoidable trade-offs for the benefits of a Bankruptcy filing. The Schedules that have to be filed in every… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 11,Chapter 13,Chapter 7The initial consultation with a good bankruptcy lawyer is a very informative and valuable experience for many reasons. It is an opportunity to “interview” the lawyer to see if you believe the lawyer is qualified and whether he or she will be easy to work with. It is also an opportunity to spend an hour… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13You know that in a Chapter 13 case you have to pay into a Chapter 13 Plan, usually for a period between 36 and 60 months. The amount of your payment is based on your disposable income. How are these payments made to the Chapter 13 Trustee? In the great majority of cases, they are… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7If you are required to file tax returns, it is very important that you make sure all returns are filed before you file for Bankruptcy, if at all possible. Surely there are times when it is not possible to catch up on prior returns, such as when a foreclosure is coming up soon, but even… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7A question that comes up surprisingly often on the various legal forums is whether a person could lose their security clearance if they filed a personal Bankruptcy case. It is certainly a great question, since the security clearance is often required for their job. The general answer is that it is highly unlikely. By many… Continue Reading
