Chapter 13 is not usually the first choice for those who need to file bankruptcy.  Chapter 7 is, and as a result the most popular form of bankruptcy. Chapter 7 is the fastest, easiest, and least expensive form of bankruptcy.
Chapter 13 if often used by people who for one reason or another are not eligible to file for Chapter 7 or to receive a Chapter 7 discharge of debt. This could be because of a prior Chapter 7…
Continue Reading Chapter 13 is Not Usually the First Choice

The American Bankruptcy Institute has encouraged Congress to reform the way student loans are dealt with in bankruptcy. Since the Bankruptcy Code was enacted in 1978, several amendments have made it more and more difficult to discharge student loans. Now our country has a student loan crisis… a needless crisis.
Proposals like free college or debt forgiveness are unfair to many, and would provide unnecessary windfalls to many others. Simply reforming the Bankruptcy Code and restoring the ability to…
Continue Reading Big Changes May be Coming for Those with Student Loan Debt

Many of my clients ask me if they will be able to have credit cards following a bankruptcy. My answer is always “yes.” This week several of our clients who had filed bankruptcy received pre-qualification offers for a Capital One credit card account. The account would require no annual fee, making this offer more attractive than some of the credit card accounts these clients had before filing bankruptcy.
Capital One has been among the most aggressive of the credit card issuers…
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Generally, no. You have gotten your own financial house in order, and should not risk that stability by placing it in the hands of another.
When you co-sign or guarantee the debt of someone else, you are subjecting yourself to the risk that they cannot or will not pay that debt. The creditor will then have recourse against you.
Just this week I dealt with a situation in which a mother had co-signed approximately $180,000 for loans for her son.
Continue Reading Should I Co-Sign a Loan for My Child?

This is a question we often get from clients. We explain to them that bankruptcy is an intensive information gathering exercise and that it is really all about disclosure on their parts. Bankruptcy provides a fresh start, but to get that fresh start the debtor must provide a full and complete disclosure. The debtor must also surrender any non-exempt assets for liquidation, with the proceeds to be distributed to creditors.
Naturally, debtors do not want to lose assets that…
Continue Reading Do I Want the Value of My Home to Be Low?

The COVID-19 Bankruptcy Relief Extension Act of 2021 was signed this week.  This law extends the $7,500,000 debt cap for businesses under the Small Business Reorganization Act of 2019 (SBRA).  The extension will last for one additional year, to March 27, 2022.

The Act is less than one page long, but is of great importance to small businesses.  Among the benefits it offers are the following:

• Eliminates what is known as the absolute priority rule in Sub. V Chapter

…
Continue Reading Great news for struggling businesses

Recently I was asked to give advice about how single women can protect themselves from financial downturns and unexpected problems. These problems might arise from an illness or injury, from a loss of a job or income, from being sued and having a judgment placed, or even from having an auto accident without sufficient insurance. The measures to be taken will vary with the circumstances, of course, but there are some underlying principles.

First, if you have debt already,…
Continue Reading Single Women and Financial Protection

March 14, coined “Pi Day” since physicist Larry Shaw started the day back in 1988 to celebrate the famous number (and recognized officially since 2009 when the US House of Representatives passed a resolution honoring the day), is often celebrated in the U.S. not by giving a moment of respect to the wonders of mathematics, but by eating pie. That’s how we roll.

This Sunday is Pi Day, so…
Continue Reading Pi(e) Day and Bankruptcy