Getting a Fresh Financial Start After Closing Down Your Small Business
Closing down a business can be messy. A bankruptcy filed to deal with the financial fallout of a business closure is often more complicated than a normal consumer bankruptcy case. But not necessarily. In one respect at least, a business bankruptcy can actually be much easier than a consumer one. If you’ve owned a small […]
Income Taxes and Self-Interest in a Marriage
Each spouse in a marriage with significant tax debt has his or her self-interest, which may need a different solution than the other spouse.
Spouse Needs to Join Bankruptcy to Discharge Income Taxes, But Reluctant Because Has No Other Debts and Has Separate Asset
Finding the best way out of this seeming Catch-22 depends on a full understanding of your unique situation and your goals.
The Rigid “Means Test” Makes the Timing of Your Bankruptcy Filing Critical
Waiting just one day to file your Chapter 7 bankruptcy case can make qualifying for it much easier—or much harder! How could such a small delay make such a big difference? One of the main goals behind the huge amendment to the bankruptcy law in 2005 was to force more people to pay a portion […]
Married Couples’ Protection from the IRS under Chapter 7 and Chapter 13
Filing bankruptcy with or without your spouse, and under Chapter 7 or Chapter 13, may affect what protections you each receive.
The Goal of Bankruptcy: the Discharge of Your Debts
Most—but not all—debts are written off, or “discharged,” in a bankruptcy case. Is there a simple way to know what will and what will not be discharged? There is nothing more basic than bankruptcy’s main purpose, getting a fresh financial start through the legal discharge of your debts. Both kinds of consumer bankruptcy can […]
“Automatic” Protection from Your Creditors
Many bankruptcy attorney ads say: “Stop garnishments.” “Stop foreclosures.” “Stop repossessions.” So bankruptcy stops all those bad things. But is it as good as it sounds? How does it really work? There’s nothing more basic than getting immediate protection for you, your paycheck, your home, and your possessions. You get this protection the minute […]
What Stops a Creditor from Chasing You After Its Debt Has Been Written Off in Bankruptcy?
Even though it’s illegal for creditors to try to collect on a debt that’s been discharged (legally written off) in bankruptcy, once in a while they do try. What makes chasing a discharged debt illegal? And what penalties can get awarded to you if a creditor breaks the law? In my blog a couple […]
Audit Shows Capital One Bank Illegally Filed $24.7 Million in Claims for Debts Previously Discharged in Bankruptcy
One can understand if a major U.S. credit card company forgets that one of its customers had earlier written off their debt in bankruptcy. But forgetting this very important fact for 15,500 of its customers?!? It is bad enough that Capital One lost track that its old debts had been legally written off (“discharged”). […]
Quick Rules about Preserving Your Home through Bankruptcy
When does filing bankruptcy save your home? When is “straight bankruptcy”—Chapter 7—the right tool, and when do you need Chapter 13? If your most important goal is to preserve your home, here’s how each kind of bankruptcy helps (or doesn’t help) in circumstances which may apply to you. 1. If you’re current on your home […]