Our Legal Blog

If you are thinking about filing for Chapter 7 bankruptcy relief, you probably know this involves “liquidation,” or selling of property, to pay back debts. This is naturally worrying, especially when it comes to the property you need, such as a vehicle you use for transportation. Many pre-bankruptcy clients wonder, “Can I keep my car if I file Chapter 7?” The answer is: there is a good chance you can keep your vehicle post-bankruptcy. If there is a loan against your car, the lender has the right to repossess it for lack of payment. The […]

Filing for bankruptcy can eliminate many types of outstanding debt, including credit card balances and medical bills; but what about loans for big-ticket items like a car, house, or furniture?  A vehicle loan, a home mortgage, and a payment plan for merchandise may also be some of the loans with a bankruptcy that are dischargeable, depending upon your goals and individual circumstances. Unsecured v. Secured Loans There are two types of common loans dealt with in bankruptcy court: secured and unsecured credit. A secured loan is backed by a debtor’s obligation to return property that […]

Bankruptcy “dismissal” sounds a lot like bankruptcy “discharge,” but these two terms have very different meanings. It is important to understand this and to ensure you end up on the right side of the court ruling. A dismissal may mean you lose bankruptcy protection and remain accountable for debts you had expected to be discharged. Bankruptcy Dismissal vs. Discharge After a successful bankruptcy filing, discharge means the terms have been satisfied and all debts are considered settled — this is the outcome you are working toward when you file for bankruptcy. At the point of […]

Federal law requires employers to withhold income, Social Security, and Medicare taxes from employee wages. When a company experiences financial distress, payments for these payroll or “trust fund” taxes may be temporarily postponed or deliberately ignored. It is important for any business owner to understand that willful failure to pay employee taxes can bring a costly lawsuit from the IRS. A recent Sixth Circuit Court of Appeals decision along these lines is noteworthy.  Issued in July, 2018, the judge’s decision stresses the importance of ensuring that your company’s taxes remain current and confirms that a […]

With the average American holding more than $6,300 in credit card debt, it’s no surprise that many American consumers go overboard when it comes to accumulating balances on their credit cards. If you have a substantial amount of credit card debt and are considering the option of filing bankruptcy, you may be wondering what will happen to your current credit cards (and your ability to open new card accounts in the future) as a result. What to Expect From Your Current Cards Unfortunately, when you file for bankruptcy and a repayment plan is worked out with […]

Many people will do anything to avoid filing for bankruptcy. The word “bankruptcy” comes with a stigma, and, of course, there are repercussions for your credit score. But, if all signs are indicating you will be unable to keep up with your debts, waiting to file for bankruptcy can be a bad decision. Filing for Chapter 7 or Chapter 13 bankruptcy protection immediately halts litigation action against you, stops foreclosure proceedings and staves off garnishment of your wages. In some cases, you can protect assets you would otherwise lose, such as a car or house, […]

If you are making minimum monthly payments on a mountain of debt, it may seem impossible to imagine a debt-free future. A debt reduction plan such as “debt avalanche” or “debt snowball” can help you pay down and eventually get rid of your financial obligations. These methods involve paying off creditors one at a time, a strategy that has been proven effective. According to Forbes, people who focus on paying down a single debt are more likely to remain motivated for long-term debt elimination. Debt Avalanche or Debt Snowball — Which Plan is Right for […]

Filing for bankruptcy protection can help you get out from under a mountain of unmanageable debt and start over with a clean slate. While discharging debt can be a positive step overall, it will certainly impact your credit score and affect the interest rates you are charged for future credit. The good news is, bankruptcy credit penalties are temporary, and your score may rebound sooner than you think. How Low Can it Go? Depending upon your credit numbers before you declare bankruptcy, your score may initially drop by 130 to 200 points.  So if you […]

Many people experience an occasional setback that impacts their bank balance. In fact, in today’s economy, it isn’t unusual to find yourself struggling to make ends meet. But, it is important to do all you can to avoid a financial meltdown — a scenario that can bring long-term consequences. The key to avoiding financial catastrophe is this: don’t hide behind denial. It is smart to stay on top of your financial situation, face the facts, and make necessary changes to stave off looming disaster. People who ignore early warning signs can easily end up in […]

As you look back on past financial habits and decisions, you may have some significant regrets – choices that continue to impact your lifestyle today.  Maybe your savings are frighteningly meager and monthly debt consumes much of your paycheck. Mistakes can be life’s greatest teachers. While it may be tempting to reprimand yourself for financial missteps, it’s more constructive to learn from these mistakes as you move toward improving your future. Common Financial Regrets If you regret money errors, know that you are not alone. In fact, a new study polling 1,000 people revealed that […]