Archive for the ‘Benefits of Bankruptcy’ Category

I Feel So Guilty Filing Bankruptcy

Wednesday, January 6th, 2010

People seeking debt relief often feel guilty about filing for bankruptcy.  We are raised to pay our debts and conditioned to feel bad when we can’t.  In fact,  people will go to extreme measures, such as depleting the retirement account, to avoid bankruptcy.

When you can’t pay your bills because your credit card lenders have raised interest to 30%, it is time to stop feeling guilty.  Stop feeling bad about bills you can’t afford to pay.

It may not be your fault.  It may be that someone in your family has gotten sick or injured and you are facing huge medical expenses.  It may be that you have lost your job on main street because of greedy acts on Wall Street.  It may be that your marriage ended.  Most Americans are one injury, illness, job loss or divorce away from bankruptcy.

Bankruptcy is a legal way to resolve your debts.   It is for honest debtors who play by the rules.  Get the fresh start you deserve and get on with your life in peace.  Call today to see if bankruptcy is the right solution for your financial problems.

Bankruptcy-It Could Happen to Anyone

What Happens to Divorce Debts in Bankruptcy?

Tuesday, January 5th, 2010

Debts in the nature of support of child or former spouse are not discharged in either chapter 7 or 13 bankruptcy.

What about property settlement debts?  If the divorce decree contains a hold harmless obligation that makes one spouse indemnify the other spouse, then the hold harmess oglibation is a separate debt to the spouse and is not dischargeable in chapter 7 bankruptcy 523(a)(5) or 523(a)(15).

The hold harmless obligations can be discharged in chapter 13 bankruptcy as long as the debt to the former spouse not a Domestic Support Obligation (DSO).  This is possible because property settlement debts under 523(a)(15) are not excepted from discharge in chapter 13 cases.  See Schuett v. Finkey, 2008 Bankr. Lexis 1555 (Bankr. D. Neb. May 21, 2008).

What are Bankruptcy Avoidance Powers?

Friday, December 18th, 2009

Avoidance powers: Rights given to the bankruptcy trustee (or the debtor in possession in a Chapter 11) to recover certain transfers of property such as preferences or fraudulent transfers or to void liens created before the commencement of a bankruptcy case. More on preferences.

What is Bankruptcy Lien Avoidance?

Thursday, December 17th, 2009

Avoidance: The Bankruptcy Code permits the debtor to eliminate (avoid) some kinds of liens that interfere with (or impair) an exemption claimed in the bankruptcy. Most judgment liens that have attached to the debtor’s home can be avoided if the total of the liens (mortgages, judgment liens and statutory liens) is greater than the value of the property in which the exemption is claimed. This is sometimes called “lien stripping.” For more, see Lien Avoidance and Lien Stripping.

Do You Owe What I Owe? Peace, Fresh Start Waiting for You New Year's Night

Wednesday, December 16th, 2009


My blogging colleague, Wendell Sherk of St. Louis, MO, wrote this bankruptcy riff on an old Christmas carol:

Do You Owe What I Owe?

(To the tune of “Do You Hear What I Hear?”)

Said the neighbor to the young man,
“Do you owe what I owe?
Bills up to the sky, young man,
Do you see what I see?
A choice, a choice, waiting in the night
A new start to end the year alright,
A fresh start for a New Year’s Night.”

Said the collector to the young man,
“I know what you owe…
Bills up to the sky, little debtor man,
Do you hear what I say?
Pay what you can’t pay, little debtor man!”
With a voice as big as the sea,
With a voice as big as the sea.

Said the young man to the lawyer kind,
“Do you know what I owe?
In your palace warm, lawyer man,
Do you know what I owe?
An arm, a leg, I’ll be out in the cold–
Help me save a little silver, or gold,
Help me save a little silver, or gold.”

Said the judge to the people everywhere,
“Listen to what I say!
Be at peace, people, everywhere,
Listen to what I say!
A fresh start, a new start, waiting in the night
To bring you peace and goodness,
To bring you quiet in the night.”

With apologies to Noel Regney & Gloria Shayne Baker

A sample of the original (better) song can be found here.

What is the Automatic Stay?

Tuesday, December 15th, 2009

Automatic stay: The injunction issued automatically upon the filing of a bankruptcy case which prohibits collection actions against the debtor, the debtor’s property or the property of the estate. See Relief from Stay on terminating the injunction.