One of the more common questions we’re asked is: “Should I file bankruptcy?” Ultimately, the choice is yours, but perhaps we can help make the decision easier. Let’s address this fact first: No one wants to file bankruptcy. You do it because you need to, and it will improve your life in the long run. So, how do you know when you need to? Below are some factors we’ve identified that may help: You’re being garnished or receiving correspondence fromRead more

St. Louis bankruptcy attorney Wendell Sherk has published a riff on a popular Christmas song – Do You Owe What I Owe? We thought it worthy of sharing it with you this holiday season. (To the tune of “Do You Hear What I Hear?”) Said the neighbor to the young man, “Do you owe what I owe? Bills up to the sky, young man, Do you see what I see? A choice, a choice, waiting in the night A newRead more

To pay for college many students borrow money from the federal government or a private lender. Student loans made or guaranteed by the federal government usually offer the best terms and repayment plans. For example, some payment plans for federal student loans are tied to a borrower’s income and offer forgiveness of the remaining debt after a borrower makes payments for 20-25 years. Federal student loans also offer subsidized interest rates and more options to borrowers who default on theirRead more

One of the common concerns people have about filing bankruptcy is what impact it will have on their credit score. Although I think people worry too much about credit scores and how soon they’ll be able to acquire more debt after bankruptcy, there is some legitimate concern about making sure credit reports and credit scores don’t hinder the purchase of a new home. In a 2007 SmartMoney.com (joint venture of Dow Jones & Company and Hearst SM Partnership) article, theRead more

Every day we discuss financial problems with our clients. Usually we start the conversation by asking our clients to give us a brief history—how did they get to the point of needing to discuss a bankruptcy? Most of the time the answers wouldn’t surprise you; job loss, divorce, medical bills, lay-off/mandatory furlough. BUT, it might surprise you to hear how frequently we hear a story that involves financial aid to adult children…ultimately leaving dear ole’ mom & dad flat broke.Read more

When thinking about trying to pay off credit card debt outside a bankruptcy it’s important to consider how difficult that can be. If you’re carrying a $10,000 credit card balance with an interest rate of 15% and only making a minimum payment of 4% of the balance owed each month, it will take nearly twenty (20) years to have the debt repaid. And that’s assuming you’re no longer using the credit card. If the interest rate is higher than 15%Read more

The most common method of foreclosure in Iowa is called “foreclosure without redemption.” In this type of foreclosure a creditor (usually by the county sheriff) serves notice of the foreclosure following a 30 day notice of the right to cure the default. On the petition of foreclosure there will be in large bold print that the creditor has chosen to foreclose without redemption. This means that once the house has been sold the homeowner cannot “redeem” the property after it’sRead more

Many clients wonder whether they are the only ones facing the kind of financial hardships that lead people to file bankruptcy. That’s obviously not the case since millions of people file bankruptcy every year. But it’s good to know what causes most people to have to file bankruptcy. A study a few years ago by researchers at Harvard Law School looked at the causes of bankruptcy and found that more than two-thirds of debtors in bankruptcy had experienced a significantRead more