The vast majority of people who file bankruptcy are completely honest and forthright in providing accurate and complete information. Even if important information does turn out to be missing or inaccurate it’s most often a result of an honest error. But it’s still important to remember that filing for bankruptcy is a serious legal process that requires complete and thorough disclosure of all financial information. Bankruptcy laws mandate that debtors fully disclose all their assets, liabilities, income, expenses, and recentRead more
The Automatic Stay of Debt Collection in Bankruptcy
The automatic stay is a fundamental provision in U.S. bankruptcy law, designed to provide immediate relief to debtors and preserve their assets while the bankruptcy case is processed. The automatic stay is an injunction that automatically halts actions by creditors to collect debts from a debtor who has declared bankruptcy. This stay comes into effect the moment a bankruptcy petition is filed with the bankruptcy court. Immediate Effect: As soon as the bankruptcy petition is filed, the automatic stay takesRead more
Federal Lawsuit Alleges Student Loan Servicer Illegally Collects Loans Discharged in Bankruptcy
The Consumer Financial Protection Bureau (CFPB) has sued the student loan servicer Pennsylvania Higher Education Assistance Agency (PHEAA), which does business as American Education Services (AES), for illegally collecting on student loans that have been discharged in bankruptcy and sending false information about consumers to credit reporting companies. The CFPB’s lawsuit asks the court to order PHEAA to stop its illegal conduct, provide redress to borrowers, and pay a civil penalty.As of December 2023, PHEAA serviced a portfolio of studentRead more
Young Adults Struggle with Credit Card Debt
New research from the Federal Reserve Bank of New York finds that young adults born between 1995 and 2011 are especially struggling with credit card debt. The report shows that more than 15% of young credit card borrowers have maxed out their credit cards. This compares with only 5% of baby boomers and only 10% of Gen X and Millennial borrowers who have reached their credit card limits. The Reserve Bank also said that severe credit card delinquency (delinquency inRead more
Technology Helps Bankruptcy Practice
Technology, including video conferencing, artificial intelligence and document retention tools, has become vitally important to the Nancy L. Thompson Law Office bankruptcy practice. When the covid pandemic started in 2020 we had to find ways to continue serving clients and filing bankruptcy cases. Court and trustee hearings stopped being held in person and in-person client meetings were problematic because of health risks to staff and clients. Remote work with technology tools became the norm rather than the exception. Now, fourRead more
Useless But Mandatory Counseling in Bankruptcy
People needing to file bankruptcy are required to complete two credit counseling courses as part of the process. This counseling is supposed to provide debtors with information and resources to help them make informed decisions about their financial situation. While there may have been some good intentions for Congress imposing this requirement on debtors in 2005, it was most likely intended by many members of Congress as a way to make the bankruptcy process harder. It has resulted in slightlyRead more
A History of Discharging Student Loans in Bankruptcy
From 1978 to 1990 all student loans owed for five years or more were dischargeable in bankruptcy. Student loans owed for less than five years were dischargeable if “undue hardship” could be showed. In 1990 the waiting period was increased to seven years. Before 1990 the restrictions on dischargeability of student loans did not apply to Chapter 13 bankruptcy. Starting in 1991 federal student loan borrowers in default became subject to administrative wage garnishment where no judgment from a courtRead more
Hire a Bankruptcy Attorney. Don’t Go It Alone.
Hiring an attorney to file bankruptcy is crucial because of the complex nature of bankruptcy laws and procedures. While it’s technically possible to file bankruptcy without legal representation, having an experienced attorney can significantly improve the chances of a favorable outcome. Bankruptcy law and procedures are intricate and can vary from state to state and district to district. An attorney experienced in bankruptcy law possesses the knowledge and ability to navigate these complexities. They can help you understand the differentRead more
Personal Property Exemptions in Chapter 7 Bankruptcy
Personal property exemptions play a crucial role in Chapter 7 bankruptcy by allowing debtors to protect certain assets from being liquidated or taken by a bankruptcy trustee to pay off creditors. Chapter 7 bankruptcy is designed to help individuals discharge most of their unsecured debts (such as credit card debt, personal loans or medical bills). Definition of Exemptions: Personal property exemptions are legal provisions that specify certain types and amounts of property that a debtor is allowed to keep, evenRead more
Romance Scams Lead to Bankruptcy
Romance scams, a heartless manipulation of trust and affection, can inflict profound emotional and financial damage upon their victims. As the web of deceit unravels, victims often find themselves grappling with dire financial consequences, pushing them towards the disheartening prospect of filing for bankruptcy. Many bankruptcy attorneys around the country are reporting more and more instances of victims of these scams needing to file bankruptcy. In the throes of a romance scam, victims are often ensnared by a skilled conRead more
- 1
- 2
- 3
- …
- 6
- Next Page »
