There has been long a perpetuating myth that student loan debt in America cannot be wiped out by declaring bankruptcy. The truth is quite the opposite. A court can grant you a discharge provided you can prove it is causing you ‘undue hardship’. Courts will use...
Month: December 2020
A Record Low in Bankruptcy Filings
Despite the economic uncertainty brought by the pandemic this year, paradoxically, the number of bankruptcy filings in the country hit a new 14-year record low this November. According to data released by the legal giant, Epiq, new bankruptcy filings across all...
What is a 2004 Examination in Bankruptcy?
In a bankruptcy case, you are required by the court to reveal all information that is deemed necessary. This includes all your debts, assets, income, expenses, etc. In addition, you will be required to attend a 341 meeting, where your creditors will ask you further...
What to Expect if You Get Sued for Debt
It is not necessary that you only get sued for a loan that you remember. There can be a case where you get a legal notice for a long-forgotten debt, which is still left unattended. For such scenarios, you should know what to do if someone sues you. Hence, we have...
Student Loans and Bankruptcy
When someone considers the option of going bankrupt, they are definitely in the most difficult situation and they cannot pay off their debts. However, when it comes to student loans, we have often heard that it cannot be discharged through this process. Well, it is...
The What, When, Why – Chapter 7 and Chapter 13 Bankruptcy
Chapter 7 and Chapter 13 are two common bankruptcy programs available to individuals to discharge their debts. If you ever got confused between the two, here is a quick what, when, and why to help you learn their differences. What is Chapter 7 Bankruptcy? Chapter 7...
Steps to Take When You Are Sued by A Creditor
Whether you have a bank loan, a credit card loan, or even an unpaid medical bill, living with excessive debt can be risky. While we all have taken some debt at a given moment, it is necessary to keep track of everything that you owe. If not, you might find yourself in...
CARES Act and Chapter 13 Bankruptcy
In March of this year, in response to the impending economic downturn, the US government passed the CARES Act. Beyond the massive $2 trillion dollar stimulus package, the Act has allowed for a number of different changes to existing laws to make it easier for both...
The Effect on Chapter 11 Business Bankruptcies in 2020
Bankruptcy is one of the most challenging options that one can only choose if the situation does not allow any other possible way. While there can be various kinds of bankruptcies, when we talk about this year, the first thing that comes to mind is business...
4 Quick Tips to Regaining Your Financial Health After Bankruptcy
A bankruptcy discharge can definitely hurt your credit score, but nonetheless, without the burden of your past debts, you can find it much easier to regain your financial health. 1. Plan a Budget Budget planning is central to effective money management. On a...