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 […]
Do I Have To Take The Credit Counselling Course Before I File A Bankruptcy Petition?
Since the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, before a debtor files for bankruptcy relief in Chapter 7 or Chapter 13, they are required to take a credit counseling course. See 11 U.S.C. § 109(h). Without a certificate that shows that the debtor completed the course, their case will […]
What Are My Rights If The Information On My Credit Report is Wrong or Incomplete?
The Fair Credit Reporting Act (FCRA) is a federal statute that was passed originally in 1970 and revised in 2003. It was passed with the goal of increasing the accuracy, fairness, and privacy of consumer’s information in the files of credit bureaus and other specialty consumer reporting agencies and in doing so promote efficiency in […]
How Can I Stop Creditors From Harassing Me?
Many debtors who contact our office are not only struggling financially, but they are actively being harassed by creditors. This includes harassment by all forms of creditors or their agents: their original creditors (the party who originally extended credit), debt buyers (companies that purchase delinquent debts), and debt collection companies or law firms (who are […]