I am sometimes contacted by someone living in a country other than the United States about filing bankruptcy. It’s often someone originally from the United States who is currently living in another country but who has debts originating in the United States or with creditors located in the U.S. Filing for bankruptcy in the United States while living in another country is possible under specific circumstances. The key factor is whether the individual has sufficient ties to the United StatesRead more

People who call me inquiring about filing bankruptcy often believe there’s some rule or generally accepted answer to the question of “Should I file bankruptcy?”. I have to tell them there’s no such rule. There’s nothing but anyone’s own personal philosophy about when it’s best to file. I share my own philosophy that life is far too short to spend more than 2-4 years outside bankruptcy trying to pay off debt. There are more important places to spend our money.Read more

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

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, 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

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

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