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 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 ReadingBankruptcy is a powerful tool for improving your spot in life. If you’re struggling to pay your bills, exhausting your savings, and dodging collection calls day and night, you might have options. For the right individual, there can be several advantages to filing bankruptcy in Hawaii. This can help eliminate the amount you owe and give you a fresh...
Continue ReadingFiling bankruptcy is typically a last resort action for most people. It is a process in which individuals eliminate different types of debt they might have. Deciding to file for bankruptcy is a life-altering decision— one of the main reasons why is the lowering of one’s credit score. Consumers usually file one of two chapters of bankruptcy, while others...
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