The automatic stay is one of the most significant protections for consumers who file for bankruptcy. Filing a bankruptcy petition automatically stops or stays most collection actions. Creditors cannot collect on a debt during the bankruptcy case, including proceeding with foreclosure measures. Thus, filing Chapter 13 bankruptcy stops foreclosure so long as the public sale has not yet occurred....
Continue ReadingYou may have heard that students cannot discharge college loans in bankruptcy, but that is not entirely true. Most student loans are not automatically discharged in bankruptcy, but it is not impossible to have your student debt forgiven. The percentage of students who discharged their loans in bankruptcy accounts for only 0.1% of student filers. Some students have their...
Continue ReadingFiling for bankruptcy is one way for consumers to escape financial debt. Many debts, like medical debt or credit cards, can be forgiven in bankruptcy. However, a fresh start has substantial consequences, including a substantial drop in your credit score. Your credit impacts your ability to get new loans at good rates in the future, so a big drop...
Continue ReadingIf you’re under financial stress and have outstanding debt, the thought of losing a portion of your paycheck may seem unbearable. What is wage garnishment? Wage garnishment is when a court orders your employer to retain a specific amount of your paycheck to satisfy a debt. Keep reading to learn more about the wage garnishment definition and what legal...
Continue ReadingBefore your attorney can advise you on debt relief options, they need to know about your financial situation. The bankruptcy consultation gives you the chance to share your financial information and explain what led you to seek bankruptcy. A consultation also lets you meet with an attorney to see if you like and can depend on them. You’ll get...
Continue ReadingOnce you file your bankruptcy petition, the court will appoint a trustee to manage your case. The trustee schedules and presides over the 341 meeting of creditors. It is called a “341 meeting” because Section 341 of the Bankruptcy Code requires the trustee to hold the meeting. During the bankruptcy 341 meeting, the trustee will verify the information in...
Continue ReadingTaxes are not always simple to understand. However, the IRS still expects each taxpayer to know their tax obligations and pay the accurate amounts. For some, that does not happen. Fortunately, the IRS allows for tax debt resolutions as the last resort for taxpayers before it takes severe action, such as garnishing wages. Below, we define IRS tax resolutions...
Continue ReadingWhen you file bankruptcy, the United States trustee assigns a private trustee to monitor the case and manage any assets. The trustee works to prevent fraud and ensures creditors are paid fairly according to the Bankruptcy Code. As a debtor in bankruptcy, you will encounter the trustee during the 341 meeting of creditors and when providing assets or payments...
Continue ReadingChapter 13 bankruptcy is called a “wage earner’s plan” because it requires you to pledge your income toward repayment over the life of the plan. Once you complete all payments under the plan, you’ll receive a discharge of most of your outstanding debts. It’s crucial that you discuss your proposed plan with an experienced attorney before filing for bankruptcy...
Continue ReadingChapter 7 offers a fresh start, but can you secure new credit with reasonable interest rates after bankruptcy? How long it takes to recover from bankruptcies depends on your credit score before bankruptcy and what you do afterward. At Blake Goodman, PC, Attorney, we guide every client through the steps to restore their credit quickly with our 720 Credit...
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