Most people believe student loans cannot be wiped out (“discharged”) in bankruptcy. Federal laws have made this difficult, but not impossible. Student loans can be discharged if repaying the loan is an “undue hardship.” The Undue Hardship Exception For your student loans to be wiped out in bankruptcy, we must prove it would be undue [...]
After you file for bankruptcy, the automatic stay offers potent legal protection against bill collectors. When you file for bankruptcy, something called the automatic stay immediately stops any lawsuit filed against you and most actions against your property by a creditor, collection agency, or government entity. Especially if you are at risk of being evicted, being foreclosed [...]
What exactly is bankruptcy? Will it wipe out all my debts? Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as “liquidation” (Chapter 7) or “reorganization” (Chapter 13). Under a Chapter 7 bankruptcy, you [...]
The following steps are recommendations of how you can begin to get your financial life back on track. Step 1: Discharge of Debtor You will receive notification from the court that your debts have been discharged through the bankruptcy. Typically, in a chapter 7 bankruptcy, it will take between 3 to 4 months after the [...]
Wise timing of your bankruptcy filing may have a significant impact on your future. While you may have pressing reasons to consider filing for bankruptcy now, in some situations you may want to wait to file, even if you are eligible for Chapter 7 bankruptcy. If you face an immediate problem that bankruptcy can at least temporarily [...]
QUESTION: I filed for Chapter 7 bankruptcy seven years ago. I’ve been told that it takes ten years for a Chapter 7 to “fall off” your record. Is there anything I can do in the meantime to get a lower rate on my car loan and credit cards? ANSWER: There are many things you can do [...]
1. The U.S. Constitution has a Bankruptcy Clause (Article I, Section 8, Clause 4.) Our founding fathers rejected the idea of debtors’ prisons and saw freedom in a fresh financial start. 2. Bankruptcy stops harassment from creditors the day you file. 3. Chapter 7 of the U. S. Bankruptcy Code allows a complete discharge [...]
