Category Archives: Bankruptcy

One of the most common hesitations that people have regarding whether to file bankruptcy is anxiety about their credit after the bankruptcy is over. Firstly, if you are already facing a dire financial situation and are defaulting on loans , your credit score is likely pretty bad already. Filing for bankruptcy would give you an opportunity to start fresh and rebuild your credit over time. The most important way to successfully rebuild your credit is to continue the budgeting and living within your means that you learned throughout the bankruptcy case. If you completed a Chapter 13 bankruptcy, you had to follow a court-ordered payment plan for three to five years. After this is over, continue with your own budget and stick to it. The longer you are able to keep up with your bills and pay them on time, the better your credit score will become. If you are…
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On our blog, we have discussed in the past that there are eligibility requirements for individuals seeking to file bankruptcy as a Chapter 7 proceeding or under Chapter 13. Specifically, to file Chapter 7 the person must first pass the means test, which compares the family’s income to the median income of the state. If the person’s income is too high (along with other factors), he or she may be ineligible to file Chapter 7. Chapter 13 bankruptcy has debt limits, and individuals dealing with high value assets and large debts may have no choice but to file under Chapter 11. Unlike Chapter 13, there is no limit on the amount of debt to file and Chapter 11 is not bound by time limits of three to five years. This means that if a person is behind on the mortgage, and five years is not enough time to repay (or…
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Many people understand that student loan debt is generally not dischargeable in bankruptcy, but they mistakenly believe that is the end all, be all of student loan debt. This is simply not true, and anyone struggling to pay household bills and make ends meet due to massive student loans should know that there is help and relief available. Individuals can file either a Chapter 13 or a Chapter 11 bankruptcy to reorganize all of their debts, including but not limited to student loans. A Chapter 13 bankruptcy is available to individuals or married couples with regular and steady income, and it involves drafting a payment plan with a bankruptcy attorney that will pay outstanding debts over time. One of the biggest benefits to student loan debtors is during this period, the loans will be in forbearance, and no interest will accumulate for three to five years. At the end of…
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