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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… proceedings. It’s not impossible to accomplish if you can show that paying the student loan debt “will impose an undue hardship on you and your dependents”. Bankruptcy judges use various tests to determine whether a borrower has proven undue hardship.

One common test is the Brunner test. This evaluation requires proving that 1) the debtor cannot maintain, based on current income and expenses, a “minimal” standard of living for the debtor and the debtor’s dependents if …

Comment by Linnie Buckley: … loans are out of control. Years ago, I received a …

Category: Bankruptcy , Debt Consolidation , Student Loans

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Let’s roll back the clock a bit. Assume it is 2003, and you are in the middle of filing your taxes. You realize that, for one reason or another, you did not pay enough in taxes for that year. Instead of getting a nice refund, you now owe Uncle Sam a sum of money that you do not have. What is the best thing to do in this situation? Without a doubt, you still should file your taxes. Even if you cannot send payment with your return, filing your taxes and not paying …

Category: Debt Consolidation , Debt and Tax Relief , Tax - Debt Garnishments

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The first step to conquering debt that has gotten out of control is to get honest with yourself.  Take the time to find out how much you owe, how much you earn and what the real gap is in between.  One of the biggest shockers debtors experience when they file bankruptcy is just how indebted they really are compared to what they had imagined.  Don’t engage in self-deception, get to the root of the truth now.

 Create A …

Category: Bankruptcy , Bankruptcy Q&A , Debt and Tax Relief , Economy , Filing Bankruptcy

Tags: Bankruptcy Attorney budget Debt

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… 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

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… For those debtors with hefty credit card balances, now may be the best time to reduce your debt. The credit card industry is doing everything in its power to get as much money out of debtors as soon as possible which can cause financially strain for those already struggling to pay their bills.  Remember, bankruptcy allows your discharge credit card debt or repay it under reasonable terms in three to five years.  A qualified bankruptcy attorney can help you find out if bankruptcy is …

Comment by Jacob Decker: … any credit card debt? Allmand & Lee can make that …

Tags: Credit card Debt Money Management Personal Finance

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In the bankruptcy case of Miller v. Sallie Mae Inc. (In re Miller) a disabled debtor who owed $20,624 on Parent Plus loans for her children’s education was denied a bankruptcy discharge of her student loans because she could not prove that continuing to pay the student loan payment would cause her to fall below the minimal standard of living.

The details of the bankruptcy case:

The debtor is severely handicapped …

Category: Chapter 11 Bankruptcy , Debt Consolidation , Debt and Tax Relief

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… bankruptcy who are often worried that they may not qualify for a Chapter 7 bankruptcy discharge don’t realize that Chapter 13 bankruptcy actually discharges more “types” of debt than Chapter 7 bankruptcy. A matter of fact, Chapter 13 bankruptcy may be the best solution for certain types of debts that simply cannot be discharged in Chapter 7 bankruptcy. Debts that can be discharged in Chapter 13 bankruptcy; but NOT in chapter 7 bankruptcy include:

*Debts that are …

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There’s an interesting article at USA Today about the negative affects of the 2005 Bankruptcy reform laws and how some laws are being introduced to Congress to mitigate the damage to American debtors.

The article said:

“There is continuing concern about the bankruptcy-reform bill and what its effects have been,” says Sen. Sheldon Whitehouse, D-R.I., who leads the Senate Judiciary subcommittee that oversees bankruptcy law. “We are looking at a number …

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Many debtors are intimidated by debt collectors who often cast themselves as these all powerful entities who can wreck havoc on a debtor’s life.  But the truth of the matter is that debt collectors aren’t as powerful as they seem, it’s just that many debtors’ lack of knowledge about their rights and the limitations of debt collectors make them vulnerable to debt collector tall tales.  Here are a couple myths and …

Category: Debt Collectors , Economy , Managing Your Finances

Tags: Debt Collectors facts Myths threatening

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In troubled times many people turn to debt to make ends meet, take care of emergencies or just to relieve the stress of everyday life by charging shopping sprees to their credit card.  But more and more Americans are not only become more indebted, they are choosing to rack up large amounts of debt secretly.  Many hide their debts from their spouse, children and parents.  But hiding debt that is out of control can become a …

Tags: Bankruptcy Debt secret

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In the bankruptcy case of Mammola, Robert J.; In re, 20 the bankruptcy debtor failed to list a creditor who later filed a lawsuit against the debtor.  After attempting to reopen the bankruptcy case so that the omitted creditor could be included in the discharge, the bankruptcy court denied the debtor’s request.

The details of the bankruptcy case:

The debtor filed for Chapter 11 relief in 1990. In 1993, the …

Category: After Bankruptcy , Bankruptcy , Chapter 7 Bankruptcy , Debt Collectors , bankruptcy law

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