The goal of bankruptcy proceedings is to obtain a discharge of debts, which means the debtor is no longer personally liable for that debt.

Q:  What does a “discharge of debt” mean, exactly?

A:  The goal of bankruptcy proceedings is to obtain a discharge of debts, which means the debtor is no longer personally liable for that debt.

Q:  So what does “personal liability” mean, then? …

Category: Bankruptcy Q&A , Debt and Tax Relief

Tags: Bankruptcy Questions Discharge of Debt

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If you are filing a joint bankruptcy with your spouse and your spouse dies during the bankruptcy process, this could impact your case in several ways. One of the most important consequences of the death of a filing spouse during bankruptcy is that the life insurance benefit payout cannot become part of the bankruptcy estate.  For example, if you and your spouse filed bankruptcy in January 15, 2010 and your spouse passed …

Comment author: My Spouse Died During Bankruptcy, Will I Lose The Life Insurance … Interest just to Me

Comment by My Spouse Died During Bankruptcy, Will I Lose The Life Insurance … Interest just to Me: … Spouse Died During Bankruptcy, Will I Lose The Life …

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Category: Bankruptcy , bankruptcy law

Tags: Bankruptcy Insurance policy Life insurance Texas

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Most debtors remember that a credit counseling course is required before filing bankruptcy; but many forget or don’t realize that they must also take a personal financial management course within 45 days after filing bankruptcy.  Whether you’re filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy, all debtors are required to take this course.  If a debtor fails to take the personal financial management course after filing bankruptcy their bankruptcy case could …

Comment by Jim Ince: … be arranged by the bankruptcy attorney.

Category: Bankruptcy , Credit Counseling , bankruptcy law

Tags: Bankruptcy bankruptcy law Debt Education

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… pay any money to your creditors or be required to liquidate any of your assets.  Because of the bankruptcy codes’ generous exemptions system, many Chapter 7 bankruptcy debtors are able to protect all of their assets from seizure during bankruptcy. Because of bankruptcy exemptions, most Chapter 7 bankruptcy debtors are able to protect their home from foreclosure by filing bankruptcy. But it should be noted that if a debtor keeps their home in bankruptcy, they will be required to …

Category: Bankruptcy , Bankruptcy Q&A , Economy , Managing Your Finances

Tags: Chapter 7 Bankruptcy Debtor foreclosure liquidate

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… pay any money to your creditors or be required to liquidate any of your assets.  Because of the bankruptcy codes’ generous exemptions system, many Chapter 7 bankruptcy debtors are able to protect all of their assets from seizure during bankruptcy. Because of bankruptcy exemptions, most Chapter 7 bankruptcy debtors are able to protect their home from foreclosure by filing bankruptcy. But it should be noted that if a debtor keeps their home in bankruptcy, they will be required to …

Category: Bankruptcy , Bankruptcy Q&A , Debt Collectors , Economy

Tags: Assets Chapter 7 Bankruptcy Debtor

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Bankruptcy offers debtors the chance at a fresh financial start.  But what does a debtor do once their debt has been discharged and their bankruptcy case closed?  Below are four tips every post bankruptcy debtor should follow if they want to start their fresh start out on the right foot.

Live within your means. Debtors exiting bankruptcy must learn to rely less on debt and more on the real …

Category: After Bankruptcy , Bankruptcy , Bankruptcy Q&A , Economy , Managing Your Finances , Medical Bills

Tags: budget post-bankruptcy

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Many debtors feels “humiliated” by their financial difficulties and when they file bankruptcy many of them are overcome with feelings of shame and failure. But the truth is that there is no shame in filing bankruptcy.  If anything, debtors should feel proud that they had the guts to face the reality of their situation and file bankruptcy so they can get a fresh financial start. Below are five other reasons why there is no shame in filing bankruptcy :

Bankruptcy is a …

Category: Bankruptcy , Bankruptcy Q&A , Economy , Filing Bankruptcy

Tags: Bankruptcy Debt relief

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One of the most insidious myths about bankruptcy is that debtors who file bankruptcy will lose all of their personal property.  For the umpteenth time, this myth is simply not true.  A matter of fact, most debtors who file Chapter 7 bankruptcy do not lose any of their property.  Every state, plus the federal bankruptcy code provides a generous amount of exemptions for debtors to use during bankruptcy.  Exemptions protect the …

Category: Bankruptcy , Bankruptcy Q&A , Economy , Filing Bankruptcy

Tags: Bankruptcy Exemptions Property

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When a debtor decides to file for Chapter 13 bankruptcy there is process they must follow.  Below we break down the Chapter 13 bankruptcy process into seven simple to understand steps.

Step 1: First discuss with your bankruptcy attorney all of your bankruptcy options, including Chapter 7 bankruptcy. Although Chapter 13 bankruptcy is a viable form of handling your debt make sure that it is the right bankruptcy chapter for you.

Step …

Category: Bankruptcy , Bankruptcy Q&A , Chapter 13 Bankruptcy

Tags: Chapter 13 Bankruptcy Debtor process

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Tip #1 – Make sure your business and personal finances are separate before you file bankruptcy.  Take an effort to keep track of your business expenses and income while simultaneously keeping your private finances in order before you bankruptcy filing.

Tip #2 – Work with an accountant if necessary to calculate what your monthly income is before you file bankruptcy.  The bankruptcy court will look at the prior 6 months of income when you file for Chapter 7 bankruptcy or …

Category: Bankruptcy Q&A , Chapter 13 Bankruptcy , Chapter 7 Bankruptcy , Debt Collectors , Economy , Filing Bankruptcy

Tags: Bankruptcy expense Income

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Chapter 13 bankruptcy allows a debtor to repay all or part of their debts over a 3 to 5 year period of time.  However, some debtors who have filed Chapter 13 bankruptcy may find themselves facing new financial difficulties at some point during the repayment period that prevents them from making agreed upon payments.  This reason alone has been major factor is scaring off some debtors from filing Chapter …

Category: Bankruptcy , Bankruptcy Q&A , Chapter 13 Bankruptcy , Chapter 7 Bankruptcy , Economy , Foreclosures

Tags: Chapter 13 Bankruptcy Chapter 7 Bankruptcy Convert

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Many debtors behind on both their mortgage and property taxes wonder if bankruptcy can be used to stop a property tax sale of their home.  Fortunately for debtors facing a property tax sale of their home, bankruptcy can be used to stop the sale if they move quickly. Here’s what you need to do:

Before filing for bankruptcy, find out if there is a property tax lien on your home. In the state of Texas, ad valorem taxes are given the highest priority of all liens …

Category: Bankruptcy , Bankruptcy Q&A , Economy , Filing Bankruptcy , bankruptcy law

Tags: Bankruptcy Lien Property Taxes

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