… 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

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One of the most common types of unsecured debt is credit card debt. However, sometimes credit card debt can transform into secured debt giving it a higher priority for repayment during bankruptcy.  How does that work?

When a debtor fails to repay their credit card debt, the credit card lender will eventually file a lawsuit against the debtor. While the debtor will have an opportunity to go to court and argue his/her case, …

Tags: credit cards Creditor Debt Secured Unsecured

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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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When discussing “unsecured” debt most debtors are speaking of credit card debt. But unsecured debt could also include a personal loan, loans from friends/family, unpaid rent etc.  Basically, unsecured debt is any debt that is not attached to some type of property.  Unsecured creditors do not have the right to seize a debtor’s property once the debtor has defaulted on the loan. However, unsecured debt can …

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When a debtor decides to file for Chapter 13 bankruptcy, there is a limit on how much debt they can have.  As of April 1, 2010 the debt limits for Chapter 13 bankruptcy will increase by 7 percent.  Chapter 13 bankruptcy debt limits for unsecured debt will be $360,475 and for secured debt, the limit will be $1,081,400.  What this means is that a debtor filing Chapter 13 bankruptcy cannot have more than $360,475 of unsecured debt and $1,081,400 in secured debt. If their debt …

Tags: Chapter 13 Bankruptcy Congress Debt increase limits

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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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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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The Federal Trade Commission (FTC) successfully sued three debt collection companies who scammed consumers into paying money they did not really owe.   A total of $1.6 million was recovered from the debt collection scammers and will be distributed to 24,916 consumers.

In 2003, the FTC sued three companies, operating under the name National Check Control, charging them with harassing and abusing consumers, falsely threaten­ing criminal prosecution, …

Category: Breaking News , Debt Collectors , Economy

Tags: consumers debt collection

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… His ex-wife accused him of hiding assets and Hulk Hogan claimed that he was drowning in medical debt. Here’s a snapshot of just what that battle looked like back in March:

Lawyers for Hulk Hogan filed documents requesting $300,000 of the his frozen assets. The hulkster had surgery on his back last month and said he is subsequently unable to work as a result. The documents claim Hogan’s bills eclipse $300,000 and he only has $411,000 in his bank account. Linda Bollea, his ex was …

Tags: Bankruptcy Divorce Hulk Hogan Linda Hogan Medica Debt

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There are several requirements that a debt must meet before it becomes governed by the Fair Debt Collection Practices Act:

The debt must be a consumer debt that was incurred for personal, household or family reasons. For example: Medical debt incurred because of a spouse’s illness would meet this criterion; however, medical debt incurred because of an employee’s accident would not meet this criteria. …

Category: Debt Collectors

Tags: Debt Fair Debt Collection Practices Act Know Your Rights Threatening Collector

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… Millions of Americas with and without health insurance have filed bankruptcy because of medical debt. More than 62 percent of U.S. bankruptcies were caused medical debt.  Here a few tips on how to handle medical debt when it strikes:

If you are uninsured and are hit with medical debt, one of the first things you should do is inform the medical provider that you are uninsured.  Many medical providers offer discounts to uninsured patients because they know that many …

Tags: Debt Health insurance Medicaid Medical Bills

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According to an article in the Star-Telegram, American Corrective Counseling Services, a debt collection company has agreed to a $2.55 million judgment to settle a lawsuit brought by thousands of debtors who claimed they were wrongly led to believe they had to pay costly fees to avoid criminal charges for bouncing checks.

The article said:

“The company sent out letters as recently as last winter purporting to be from various Pennsylvania district attorneys’ offices to …

Category: Debt Collectors , Lawsuits

Tags: American Corrective Counseling Services Debt Collector Judgement

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