Tag Archives: #BankruptcyDosAndDonts
Did you know that 8 percent of bankruptcy filers are aged 65 or older? This number has been trending upwards since 2008. One reason was the recession, which hit the elderly age group hard. And in some states, creditors are allowed to garnish up to 25 percent of a debtor’s disposable income, so bankruptcy can become an attractive option for people who fall behind on their bills. But perhaps the most common cause of senior bankruptcy is medical debt. Medical debt is the number one source of personal bankruptcy filings in the U.S. and given the high cost of healthcare for elderly people, it is easy for a debt spiral to drag down the finances of seniors with healthcare needs. According to the Consumer Financial Protection Bureau, debt collection is the most-complained about product or service for consumers over 62. The incessant calls and predatory nature of these companies can…
Read More »
Bankruptcy is a complex process, and a personal one. For that reason, many people consider trying to wade through the bankruptcy process themselves, without the assistance of an attorney. However, despite your do-it-yourself attitude, it is highly inadvisable to go through the bankruptcy process without a lawyer to help guide you. Bankruptcy is so easy to mess up – even skipping a little step or improperly filling out a form can lead to your case getting thrown out, or certain debts not getting discharged. But what should you look for in a bankruptcy attorney? A deep knowledge of bankruptcy law Someone who understands the complexity of your case, whether individual or for business bankruptcy Someone that you think you can develop a good professional relationship with When seeking a bankruptcy attorney, beware of scams – there are a lot of companies out there promising quick fixes for your financial problems….
Read More »
When bankruptcy is filed in the U.S., it is typically one of two types: Chapter 7 or Chapter 13. How does one decide which to file for? Chapter 7 bankruptcy can be thought of as a liquidation bankruptcy. Chapter 11 can be thought of as a reorganization bankruptcy. Under Chapter 7, individuals and business entities are able to file. Under Chapter 13, only individuals, including sole proprietors, are able to file. Benefits of Chapter 7 Over Chapter 13 Typically, Chapter 7 is the quicker option. Under Chapter 7, you are able to keep most of your property, and you aren’t locked into a long-term repayment plan. If you don’t have a lot of property you wish to keep, or you have a lot of credit card, medical or personal loan debt and your family income doesn’t exceed the state median for a family the same size as yours, Chapter 7…
Read More »