How Does Social Security Income Impact A Bankruptcy Case?
When facing financial difficulty, Chapter 7 and Chapter 13 bankruptcy are the two main bankruptcy options to help consumers struggling with debt. Both allow a consumer to discharge their debts, get protection from creditors and receive a fresh start. In a Chapter 7 bankruptcy case, a debtor’s dischargeable debts are eliminated in a relatively quick […]
HAVEN Act Extends Means Test Exemption to Disabled Veterans And Their Families
On Aug. 23, 2019, the Honoring American Veterans in Extreme Need Act of 2019 (HAVEN Act) was signed into law. The HAVEN Act amends the Bankruptcy Code to exclude many benefits paid by the U.S. Department of Veterans Affairs (VA) and the U.S. Department of Defense (DoD) to disabled veterans and their families from the […]
Can I Withdraw My Chapter 7 Bankruptcy Case? (Voluntary Dismissal of Chapter 7)
Filing for Bankruptcy is a big decision but once a debtor files their bankruptcy case, it cannot be voluntarily withdrawn without Court permission. There are a number of factors that the Bankruptcy Court must evaluate before a debtor is permitted to voluntarily dismiss a Chapter 7 Bankruptcy case. Generally, a debtor can only withdraw their […]
What Is Worse For Your Credit – Bankruptcy vs Debt Settlement?
Many people wonder what their options are when they are struggling to pay their bills? Financial hardship can stem from various factors that ultimately result consumers finding that their debts have spiraled out of control. A few examples of such hardships may include: the loss of a job, a reduction in the availability of overtime, […]
Home Appraisal and the Valuation of Real Estate in Chapter 7 Bankruptcy
Many people incorrectly believe that they will lose their home if they file for bankruptcy. When filing for Chapter 7 bankruptcy in New York, there are two different sets of exemptions which a homeowner can claim in order to protect the equity in their primary residence, state law exemptions and the exemptions provided by the […]
Should I File For Bankruptcy When Retired Or On A Fixed Income
We previously wrote a blog post about whether one should consider withdrawing money from their retirement accounts to help pay off their credit card balances or other debts. In that blog post, we looked at the questions that Americans who are either retired or on a fixed income evaluate when deciding whether or not to […]
What Happens If I Don’t Make My Car Or Mortgage Payments After I File for Bankruptcy?
The Automatic Stay Protects Debtors Pursuant to 11 U.S.C. § 362 of the Bankruptcy Code, when a debtor files a bankruptcy case, an injunction is automatically imposed to bar creditors from starting or continuing collection efforts against the debtor. This is referred to as “the automatic stay.” The injunction is one of the fundamental debtor […]
Federal Trade Commission Takes Action Against Lender’s Deceptive Practices
While consumer protection has not been a priority for the current administration, the Federal Trade Commission’s Bureau of Consumer Protection recently brought an enforcement action against the online lending platform, LendingClub Corporation. The FTC has filed charges against LendingClub in the U.S. District Court for the Northern District of California. The company was charged with […]
Chapter 13 Caselaw Review: Can I Request Loss Mitigation If I Am On The Deed To A Property But Not The Mortgage?
Occasionally in a bankruptcy filing, a debtor is on a deed to a property but not on the mortgage attached to it. This sometimes occurs when either (1) a property is inherited or (2) when a spouse remarries. In these circumstances, a question arises in the Chapter 13 context, can the debtor who is on […]
Revised Means Test Numbers For Bankruptcy Cases Filed After May 1, 2018
Effective May 1, 2018, there are now new means test figures for debtors filing for bankruptcy. These numbers are set by the US Trustee Program, which is a division of the Justice Department. The means test is essentially a budget test which applies if a debtor exceeds than the median income for their household size […]