There was the dot com bubble, the housing bubble, now the student loan bubble. Student loan debt has grown dramatically in the recent past. In 2010 student loan debt exceeded credit card debt. In 2011 it surpassed auto loans. There is now more than one trillion dollars in student debt according to the Consumer Financial Protection Bureau. Unfortunately, the bankruptcy code does not offer any relief from student loan debt. Some organizations are pushing for new legislation that would offer student loan debtors relief under...
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If you are not current on your car payments, your options will depend greatly on the type of bankruptcy you choose. If Chapter 7 bankruptcy is right for you, because you have mostly unsecured debt or would like to complete the process quickly, you may be wondering whether you have to surrender your car in the process. It is possible to lose your car in Chapter 7, so it is important to work with an experienced bankruptcy attorney in your area. Your attorney will discuss...
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Filing for bankruptcy is a huge decision, that will have an impact on your life for years to come. This impact can be good, and it can also be bad. For most people, it is a huge relief with some negative side effects. But no matter what your situation, below are a list of things you need to consider before you file for bankruptcy. (1) Whether you are eligible. It may not even occur to you, but there some limitations on who can file for...
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You have been served with a complaint. Whether that lawsuit stems from a car accident or contractual breach, you may automatically wonder what the result may be. Could you lose everything you own? It is good to know that bankruptcy can be a solution in some cases. When can bankruptcy help, and at what point should you consider filing for relief? The first thing to consider if you face a lawsuit or have already had a judgment entered against you in one, is that bankruptcy...
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Failing the Means Test: How to File for Chapter 7 Anyway The Means Test was designed to weed people out of bankruptcy. Congress feared that people were filing for bankruptcy who could afford to pay off their debts but simply chose not to. In order to keep such fraud at bay, Congress passed additions to the Bankruptcy Code that require every bankruptcy filer to submit their income and expense information to the Bankruptcy Court. If they fail, they are supposed to file for Chapter 13...
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People who find themselves in financial hardship never want to be there. And contrary to the opinions of some politicians, most of them want to make good on their debt. But wanting to do the right thing and making the best decision for you are two different things in some cases. It is important to know when to stop paying those bills. At some point, there is no way you will be able to pay all of your bills. This is the point where you...
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Most debtors do not like to spread around the fact that they owe any money. Your debt is a matter which is between you and the person to whom you owe money. One of the common debt collection tactics is threatening to tell others about your debt. There are however, rules to protect you and an outline of which people debt collectors may and may not contact regarding your debt. Usually, contacting third parties to collect a debt is out of the questions. This means...
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Often, people are aware that filing for bankruptcy can have an effect on their home or car, or even their jewelry. But few people think about the impact a bankruptcy filing could have on their family pets or livestock. What happens to animals during a bankruptcy? Fortunately, most people’s household pets are exempt under state bankruptcy laws. In Arizona, A.R.S. § 33-1125(3) exempts from bankruptcy any domestic pets, horses, milk cows and poultry with a fair market value not to exceed $500. Anything over $500...
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Many people in financial trouble do their best to scrape by until its too late. Sometimes, this involves working extra jobs, making late payments, or even selling some of their personal belongings. Whether this is the right thing to do will depend on your particular situation, but sometimes such activity can have a negative effect once you file for bankruptcy. In some situations, you can sell your possessions before you file for bankruptcy, and avoid losing that possession. However, there are several limitations...
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The trustee is the person appointed to administer your case. In general, the trustee seeks to make sure that your creditors are protected, and that everything goes according to the laws of the Bankruptcy Code. But how should you treat your creditor, and why should you avoid irritating him or her? Trustees have some discretion, and this is why you do not want your trustee to dislike you. Although trustees are generally there to follow the law and will act professionally, if the trustee has...
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