In the bankruptcy case of Raeder, Nathaniel F.; In re (Harrold v. Raeder), the bankruptcy court ruled that the plaintiff’s claim was not excepted from bankruptcy discharge.

The details of the bankruptcy case:

In 2003, due to a broken shoulder and the inability to move around or write, the debtor’s mother (the plaintiff) had delegated to her son (the debtor) the responsibility of …

Comment by Jacob Decker: … tension between family members.

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Many debtors considering bankruptcy hesitate because they have taken out loans from friends and family and don’t want to “wrong” them by filing bankruptcy. Many debtors even make the mistake of hiding or secretly repaying friends and family loans while filing bankruptcy on their “other” debt. We need to talk about this very real and emotional bankruptcy issue that causes many debtors unnecessary anguish when considering bankruptcy.

Number 1: When you file bankruptcy, you …

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… of people sharing ideas and giving pointers on the latest sales, the best coupon, or how to make family time fun on a budget.  Each of these is chalked full of good advice on general topics.  However, a thread on one of them concerned me last month.  A wife posted a request for more information about how to get a 1099 after a foreclosure.  Several people responded and tried to help her.  Each gave input about their situation and how it would be in their state.  It was great that so …

Tags: Bankruptcy Divorce Family law Personal Finance

Many debtors considering bankruptcy owe money to family and friends and want to keep them out of the bankruptcy proceeding. To avoid problems with family and friends who have loaned them money, some debtors may choose to pay back a debt owed to family/friends either partially or fully before filing bankruptcy.  But doing so may have consequences for debtor or the person who loaned  them the money.  Things you should consider before you pay …

… had the opportunity to have their debts forgiven and try again.

Bankruptcy can give your entire family the second chance they deserve to live free of debt-related stress.  Many studies have shown that even children are negatively impacted by debt that lingers unpaid and burdens their family’s finances.  However, by removing that debt burden, bankruptcy also relieves the stress many children experience when their parents are suffering under mountains of debt.

Even many lenders have …

… often their best option to reduce or discharge the debt.

Secret debtors are likely to ruin close family relationships and even face divorce.  Since debt cannot be kept a secret forever, eventually loved ones will discover the truth and when they do there will be conflict.  When a spouse discovers that he/she may need to file bankruptcy because of their loved one’s secret debt, they are likely to feel betrayed. Secret debt can often cause divorce.

Debt problems that are kept a secret …

… any asset transfers made before filing bankruptcy, including the transfer of real estate to family and/or friends.  If you fail to disclose this information you could face a dismissal of your bankruptcy case.  Also, if you transfer property to someone else before filing bankruptcy, the bankruptcy trustee could demand that property be returned to the bankruptcy estate.  The same rule applies to other assets such as cash.  If the transferee fails to surrender the property to the …

… bankruptcy as a possible solution, DO NOT transfer any assets to business associates or family/friends.  Even if your intentions are completely honorable, transferring assets to someone else or something else (such as a business entity) before filing bankruptcy could cause problems with your case.

Tip #5 – Take the time to speak with a bankruptcy attorney about your bankruptcy options.  While a self-employed debtor may want to file Chapter 7 bankruptcy or Chapter 13 …

… checks) and even utility companies for past due bills.  Also do not fail to include debts owed to family members and friends in your bankruptcy filing.  Your fresh financial start is dependent on your due diligence.

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

… hand.  They may have filed bankruptcy because of a job loss, medical emergency, death of the family breadwinner or some other drastic change in their life that has caused them to have too much debt they can no longer pay.  Below are a couple of real life scenarios that often cause people to file bankruptcy:

A woman loses her husband unexpectedly.  He was the primary breadwinner, she worked a part-time and cared for two small children.  They are 32 and 36 respectively.  Maybe they …

… Chapter 7 bankruptcy and discharge their debts.  In Texas, the median income for a 2 person family is $30,502.  If a debtor with a 2 person family earns more than $30,502 they may be forced to file Chapter 13 bankruptcy, although there are exceptions.  The change was made to the bankruptcy code because it was presumed that above median income debtors who file Chapter 7 bankruptcy were abusing the bankruptcy system.  To prevent this “abuse” the legislators changed the …

… things don’t turn around in 30 days then I will file bankruptcy” may be a good idea.

Your family and friends believe that bankruptcy is immoral and that anyone who files bankruptcy is a cheat.  Don’t listen to them.  The truth is that this is your life and unless they have signed a legally binding contract agreeing to repay all of your debts, depending on their opinions when considering bankruptcy could deal a death blow to your finances.

You are going to work with a debt …

Category: Bankruptcy Q&A , Credit and Bankruptcy , bankruptcy law