For most folks, filing bankruptcy is a last resort. In fact, many people feel that it is their responsibility to pay off their debt and a failure to do so means neglecting their duty.
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Most states, including New Mexico, have a statute of limitation for suing debtors. This means that if you have outstanding debt, there is a certain time frame when the creditor must take legal action against you, and once that time has elapsed you can no longer be sued.
If you’re one of the millions of people in this country struggling with debt, then you may have had the unfortunate experience of having to deal with a junk debt buyer.
For most people, discussing financial matters is very personal and sensitive. Be sure that you are comfortable communicating with your attorney. For your attorney to do a good job, you’ll need to have a frank and honest discussion about your finances
Even if your employer does find out about your bankruptcy, it is against the law for your employer to discriminate against an employee who has filed for bankruptcy. The U.S. Bankruptcy code, which is a federal law, specifically outlines many situations where discrimination against people who have filed for bankruptcy is prohibited.
A “341” meeting is a meeting required under Bankruptcy Code section 341. It is a meeting where the Trustee will put you under oath to answer questions about your petition and schedules. If the case is a Chapter 11 or Chapter 13, the questions will involve what the plan going forward will entail, and the meeting will be more in depth.
In most states, when filing for bankruptcy, the Debtor has no choice about exemptions. The only exemptions available to the individual in most other states will be the state exemptions. The bankruptcy code provides that state law may provide for debtors to have a choice of the federal exemptions or state exemptions in bankruptcy, and New Mexico has done so.
When people discuss bankruptcy, it’s almost always with a negative connotation. They see it as a failure, as something to lament. But what about its advantages? When handled properly, it can be the first step along the path to financial success. Wouldn’t the greater failure be to not declare bankruptcy, and continue in a unsustainable financial condition, making no progress toward solving any problems?
The main advantage of Chapter 11 is that no trustee is appointed. Rather, the filer maintains control of their assets or their business throughout the process, becoming what is known as a Debtor in Possession. However, built into this advantage is also the main drawback to a Chapter 11 filing — complexity.
Bankruptcy is a complex process. Bankruptcies are handled by a federal court known as the bankruptcy court, and filed under a particular chapter of the bankruptcy code. The most common types of filing for individuals and business are Chapter 7, Chapter 11, and Chapter 13.
It’s been four months since for-profit college chain ITT Tech closed all of its campuses, including its Albuquerque location near Ellison and Jefferson. The shutdown came just before a bankruptcy filing on September 16th of last year, but ITT became the subject of another legal action earlier this month.
A common question in our office is which debts are covered by a bankruptcy proceeding and which are not. There are definitely some debts that are unable to be discharged in and filing.
The short answer to the question “Is bankruptcy bad” is no. When a lender borrows money, they are gambling that the borrower can not only repay the debt – but also that the borrower is going to pay them a fee for doing so.
People that are debt free are happier, less stressed, more free and generally in a better place than those encumbered by debt. In 2015 most sources say the average U.S. household with debt carries $15,762 in credit card debt and $130,922 in total debt. Ouch.
Bankruptcy fraud is a white-collar crime that takes four general forms.
Debt is never a happy subject. And if you have student loan debt, you are all too aware of the feeling of helplessness of being in debt. Unlike almost every other kind of debt, student loan debt can almost never be removed from your life except to pay it back.
Primarily secured debt and unsecured debt come into play when you borrow money. They are loans. You need money for something and you borrow the money under certain conditions.
A payday loan is described as: a relatively small amount of money lent at a high rate of interest on the agreement that it will be repaid when the borrower receives their next paycheck.
The word Bankruptcy has a huge negative stigma. How could filing for bankruptcy possibly be the responsible thing to do?
First off, if you are in the middle of a bankruptcy, talk to your team, that’s why you pay them. If you are still pondering filing for bankruptcy and you have questions read on.
It’s hard to know what to do when you don’t understand the language.
I want to take a minute to explain the vocabulary of bankruptcy. For people, like me, I get stuck on all the words. So often when you go to talk to someone about a topic they are an expert in, they use language they assume I understand. Let’s understand the language.
You’ve met people who really had a handle on their money. Is it something you are born with or is Financial Responsibility learned?
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