Category Archives: Bankruptcy Law

Getting Rid of Traffic Tickets in Bankruptcy

Fines for parking  and traffic tickets are a big concern for our clients, especially for those who drive professionally for a living. While these fines are rarely a factor in the decision to file for bankruptcy, they can influence which bankruptcy chapter might be the best choice for a debtor’s situation. PARKING AND TRAFFIC FINES SURVIVE IN A CHAPTER 7 BANKRUPTCY While a debtor can get rid of most debts in a Chapter 7 bankruptcy, there are some important exceptions. Section 523 of the Bankruptcy Code contains a list of exceptions to the general rule about discharging debts in bankruptcy. Section 523(a)(7) of the Bankruptcy Code states that a debt will survive a Chapter 7 bankruptcy if it is “for a fine, penalty, or forfeiture payable to and for the benefit of a governmental unit, and is not compensation for actual pecuniary loss, other than a tax penalty”. Traffic and parking fines would be a government fine under this section and not discharged in a….. To continue reading this legal news please click Read full information...

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How to Choose a College Savings Plan

College student loan debt in the U.S. has risen to over $1.3 Trillion in 2017 affecting nearly 70% of all graduates. As the student loan debt crisis in America continues, choosing a college savings plan for your children increases in importance. With several different college savings plans available, however, you may find it difficult to  … Read more.. To continue reading this legal news please click Read full information...

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Top 10 Best Practices For Lenders On Problem Loans

Since the start of the financial crisis, the number of problem loans has increased as real estate values declined, credit markets tightened, and various companies struggled to survive and stay in business during this recession. For lenders who made loans secured by real estate or personal property collateral during better economic conditions, these lenders are now being faced with loan defaults and having to decide whether to workout the loan (e.g., by giving an extension of maturity date, or restructuring the interest rate or other loan terms, or waiving certain defaults) or to exercise its rights and remedies (e.g., by foreclosure, appointment of a receiver, action against the guarantor, etc.). The following identifies ten best practices and issues for consideration by lenders when dealing with a problem loan... To continue reading this legal news please click Read full information...

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How Can I Handle a Student Loan Default?

There are multiple consequences you could face if you were to default on your student loans. Your wages and income tax refunds could be garnished to satisfy the debts. You could be reported to the three credit bureaus. The full amount of the loan becomes due and you could accumulate fees. If you have federal student loans, then you will lose eligibility for helpful repayment programs. Therefore, it is essential to avoid default at any costs. If you do default on student loans, it is crucial to look at your available options for bringing your loans back into good standing. Avoid default: There are a few options you could consider to get caught up on payments if you are at risk of defaulting. Consider enrolling in an income-driven repayment plan if you have federal loans. This option could also free up income that is needed to pay back private loans. You could also see if you qualify for an economic hardship deferment through your servicer. For private loan borrowers, you could….. To continue reading this legal news please click Read full information...

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Ten Things You Need to Know Before Filing Bankruptcy

Ten Things You Need to Know Before Filing Bankruptcy Bankruptcy is a tool.  Any tool can be misused which can cause you serious damage.  Ask the idiot who sticks a screw driver in a live electrical socket. YOU ARE UNIQUE: Each person has a unique situation, background and goals.  Never take advice from a friend or relative because their situation will NEVER be the same as yours.  After all, you would not take medicine prescribed to your friend, so why would you assume your financial and personal history is the same for bankruptcy purposes? BANKRUPTCY FRAUD: Bankruptcy is not the same of filling out simple forms.  All bankruptcy cases include at least 70 pages of information, all signed under penalty of perjury.  That means if you lie, hide assets or try to defraud the court or creditors you may find your  “discharge” revoked (this is your bankruptcy protection from creditors) and you referred to the Department of Justice for….. To continue reading this legal news please click Read full information...

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