… 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?

A:  Having personal liability for a debt means that creditors who obtain a judgment against you can use legal means, …

Category: Bankruptcy Q&A , Debt and Tax Relief

Tags: Bankruptcy Questions Discharge of Debt

Permalink: /debt-and-tax-relief/bankruptcy-qa-discharge-of-debt/

According to an article in the Dallas Morning News, Debt Relief USA Inc., filed for Chapter 11 bankruptcy this week and has ceased all operations. That’s bad new for debtors who were working with this company because they may not get all of their money back.

The article said:

“Debt Relief USA anticipates sending written instructions to its customers, most former customers, creditors and known potential creditors with instructions on any …

Permalink: /bankruptcy/debt-relief-usa-inc-files-bankruptcy/

National Guard and Reservists Debt Relief Act of 2008 is an Act to amend the Bankruptcy Abuse Prevention and Consumer Protection Act to exempt for a limited period, from the application of the means-test presumption of abuse under chapter 7, qualifying members of reserve components of the Armed Forces and members of the National Guard who, after September 11, 2001, are called to active duty or to perform a …

Tags: bankruptcy law debt relieft act

Permalink: /dallas_bankruptcy_laws/national-guard-and-reservists-debt-relief-act-of-2008/

… an article in the Star-Telegram, the Better Business Bureau is warning consumers away from using debt settlement companies, which often worsen their financial condition and fail to deliver on their promises.

The article said:

“The Better Business Bureau at Fort Worth has just completed a report on debt settlement businesses and warns consumers that seeking their help is rarely a good idea. Debt settlement usually adds to the consumer’s debt load and rarely leads to a significant …

Category: Bankruptcy , Debt Consolidation , Economy

Tags: Bankruptcy Better Business Bureau Debt settlement Financial services

Permalink: /debt_consolidation/better-business-bureau-gives-debt-settlement-companies-an-f/

… don’t plan on falling behind on their bills.  Then… to add insult to the financial injury, a debt collector with an attitude calls you.  Their job is plain and simple…to get you to pay.  Some collector’s though have the belief that their job is to get you to pay, regardless of what it takes.  You might owe the debt.  You probably feel guilty about what you haven’t been able to pay, because that’s how your parents raised you:  pay what you owe.  Even if you have guilty …

Category: Bankruptcy , Debt Collectors , Debt and Tax Relief

Tags: Consumer protection Debt Collectors Federal Trade Commission Know Your Rights

Permalink: /bankruptcy/hounded-by-a-debt-collector%e2%80%a6-know-abuse-and-report-abuse/

… the employee’s disposable income.  Unfortunately, those payments will continue until the entire debt has been paid off.  Any kind of debt can lead to garnishment of wages, but the most common types include back child support, unpaid court fines or judgments, defaulted student loans, and the biggie–taxes owed to either state governments or the IRS.

Once the garnishment has been served on an employer, the company takes a portion of the employee’s salary during the payroll process in …

Category: Fort Worth Lawyer , Property Exemptions , Tax - Debt Garnishments

Tags: Bankruptcy Chapter 13 Title 11 United States Code Garnishment Internal Revenue Service tax

Permalink: /fort_worth_lawyer/getting-relief-from-tax-debt-garnishments/

… in the Dallas Morning News, Texas Attorney General Greg Abbott successfully argued that Debt Relief USA’s bankruptcy case should be converted from a reorganization to a liquidation, increasing the chances of recovering $4.6 million owed to former customers of Debt Relief USA.

The article said:

“Debt Relief USA promised to help consumers with large debts by having customers pay the company instead of paying creditors. Under its business model, Debt Relief would negotiate …

Permalink: /lawsuits/texas-attorney-general-battles-debt-relief-usa/

When in serious debt, consumers are faced with a barrage of choices:  find a way to reduce, settle or gradually pay off the debt, or just simply file for bankruptcy?  “With bankruptcy being an option of last resort, other solutions sometimes appear more attractive,” says Texas Attorney Reed Allmand.  “Little do people realize, with these other solutions, there’s always potential danger and …

Permalink: /dallas_bankruptcy/credit-counseling-debt-relief-or-bankruptcy-wrong-choice-robs-man-of-30000-in-horrifying-tale/

According to an article in the Gazette, the amount of medical debt afflicting Americans is on the rise as the number of job losses mount and the recession worsens. That’s why many Americans facing mounting medical debt are filing bankruptcy for relief.

The article said:

“A new national study showed that more than 60 percent of all personal bankruptcies in the country were related to medical problems and most of the people were middle-class and …

Comment by Marlene: … how much medical debt there is in the U.S. The amount at …

Category: Breaking News , Debt Consolidation , Medical Bills

Permalink: /medical_bills/medical-debt-goes-up-as-recession-worsens/

Many debtors considering bankruptcy are concerned that debt discharged during bankruptcy is taxable by the IRS.  The IRS does tax “cancelled” debt when they consider the cancelled debt income that’s improving the financial position of the taxpayer; but this is NEVER the case in bankruptcy.  For example, credit card debt that has been partially or fully cancelled with the help of a debt settlement company could result in a tax bill for the …

Category: Debt and Tax Relief

Permalink: /debt-and-tax-relief/is-my-discharged-debt-taxable/

There are many people out there who believe that debtors have a moral obligation to repay debt no matter what–illness, destitution, job loss or other crisis. Although, I respect the beliefs of others, I don’t think this argument is sound.  The laws of this country are designed to forgive the debts of individuals and businesses when necessary by using bankruptcy.  It’s set up like this for a logical; but also a very moral reason.  There are times when a person can no longer …

Category: Bankruptcy , Debt and Tax Relief

Permalink: /bankruptcy/do-people-have-a-moral-obligation-to-repay-debt-no-matter-what/

… Dallas Morning News has another interesting, albeit incomplete, article about how to get out of debt in 2009 that unfortunately never mentions bankruptcy. It’s unfortunate because many of the people who will read this article and waste their time using some the "debt reduction tactics" suggested by the article really NEED to file for bankruptcy. One of the few good pieces of advice given by this article is to:

…total up all your debts. Create a summary sheet that lists …

Category: Debt and Tax Relief

Permalink: /debt-and-tax-relief/2009-the-year-of-tackling-debt/