Bankruptcy Law

Bankruptcy Law

When is Filing for Bankruptcy a Good Idea for Seniors?

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When most people think of their retirement, they picture living a life of rest and relaxation. However, with credit card debt increasing for individuals over the age of 65, many are carrying this debt into retirement. Medical debt can compound the problem. When seniors face health issues, putting the additional out of pocket costs not covered by their insurance can be tempting. In fact, medical debt is the leading cause behind U.S. bankruptcy filings today.

Most senior citizens rely on a fixed income following retirement, whether it be money coming in from social security or retirement savings. This income could very well be enough to keep that person living a comfortable life. However, it only takes one major medical crisis or unexpected expense to turn a comfortable financial situation upside down.  For seniors living on a fixed income, it can force them to put these unexpected expenses on credit cards.

Bankruptcy Law

The Most Common Forms of Bankruptcy Fraud

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Bankruptcy laws require that the filer be honest and open about his or her financial situation, including disclosing all assets and debts. While no one wants to lose property to pay off creditors, some assets must be sold during the bankruptcy case to pay off the filer’s debts. If a filer actively tries to hide or fails to disclose information in hopes of keeping it from the bankruptcy court, this is called bankruptcy fraud and it can cause your case to be dismissed.

Hiding Assets

Concealing assets is one of the more common forms of bankruptcy fraud. Approximately 70 percent of all cases where some type of fraud was reported involved concealment of assets. It can involve the person simply leaving a certain asset off the list of those reported to the bankruptcy trustee. It can also involve hiding the asset through a fraudulent transfer, including giving the asset to someone else to keep it during the duration of the bankruptcy case, with the intent that the person holding the asset will return it after the case concludes. If this type of fraud is discovered, the filer and the person holding the asset could be held liable for bankruptcy fraud.

Bankruptcy Law, Debt Relief, Medical Debt

How the Insured Fall into Medical Bankruptcy

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There was a time when having health insurance was enough to assure someone that his or her medical expenses would be adequately covered and that he or she would not fall into debt due to one major medical crisis. However, today’s high deductible insurance plans and skyrocketing medical costs have made it impossible to stay out of medical debt. It is for this reason that so many American consumers are falling into what is called “medical bankruptcy” or bankruptcy due to medical debt.

According to a study published by the American Journal of Public Health, 530,000 bankruptcies are filed annually due to medical debt. Even with coverage offered through the Affordable Care Act, consumers are still struggling to afford their medical bills. A lot of this has to do with the insurance coverage options and healthcare plans offered.

Bankruptcy Law

Can Filing for Bankruptcy Save My Home?

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When someone is facing the possibility of bankruptcy, the thought of losing his or her home is a very real and frightening one. However, the protections of the bankruptcy automatic stay can help the filer protect his or her home through a Chapter 7 or Chapter 13 filing. The key to this protection rests heavily on the type of bankruptcy filing and the filer’s financial situation. The bankruptcy automatic stay also offers filers who are facing a multitude of collection calls relief from their creditors, protect them from lawsuits, wage garnishment, repossession, and losing valuable property.

As soon as the bankruptcy petition is filed, the automatic stay goes into effect. After this point, creditors and debt collectors are legally barred from attempting to collect on any debt owed by the filer.

Bankruptcy Law, Medical Debt

Why So Many Americans Over the Age of 55 are Filing for Bankruptcy.

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Bankruptcy offers filers a fresh financial start, but for many bankruptcy petitioners, that start comes later in life. In the past three decades, the number of people over the age of 55 who have filed for bankruptcy has gone up significantly. This increase has many financial experts wondering why so many individuals nearing retirement are filing for bankruptcy.

According to a paper by Robert Lawless, the percentage of older Americans, specifically between the ages of 55 and 64, increased by 66 percent between the year 1991 and 2016. The number of bankruptcies filed by individuals between 65 and 74 increased by more than 200 percent between this time period. In fact, approximately 12 percent of all bankruptcy filers are over the age of 65.

Bankruptcy Law

Steps for Filing Chapter 7 Bankruptcy in Florida

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If someone is considering filing for Chapter 7 bankruptcy, the path that person needs to take may not always be clear. While everyone’s situation differs in some respects, certain steps must be taken when it comes to proceeding with Chapter 7 bankruptcy.

Review Your Financial Situation

Before proceeding, it is always recommended that the filer sit down with an experienced bankruptcy attorney and go over what types of debt the person has, as well as what property would be protected by Florida’s bankruptcy exemptions.

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief

Credit Card Debt and the Effects It Can Have on Your Health

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Credit card debt can be a necessary evil, especially when it comes to establishing one’s credit score. However, the problems arise when that credit card balance gets out of hand to the point where the cardholder can no longer pay down the balance. The stress of mounting credit card debt can also affect a person’s health, according to a study from CompareCards.com.

The study shows that credit card debt is taking its toll on the health and well-being of many American consumers. According to the report, fewer cardholders can pay their balances in full at the end of each month. Anything left on those balances roll over to the next month and are compounded even more by interest. Before long, those balances inch closer and closer to the allotted credit limit. One in three consumers surveyed by WalletHub reported being fearful that they will max out their credit cards.

Bankruptcy Law, Debt Relief

How Small Business Owners Can Protect Assets in Bankruptcy

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Many business owners worry about what will happen to their companies and their business assets when facing bankruptcy or a lawsuit. It is important for any business owner that he or she creates an asset protection plan for these exact types of situations.

The first step is to develop a debt management plan for the business. Having debt is not always a bad thing. The key is to manage the debt in an intelligent manner to stay out of trouble.  Business loans will usually involve offering business assets as collateral, which means that if the business owner ends up defaulting on the loan, the lender can seize the collateral to pay the debt. Some lenders will require borrowers to sign a personal guarantee if the collateral is not enough to cover the debt.

Bankruptcy Law, student loan debt

Betsy DeVos Faces Possible Jail Time for Failing to Forgive Student Loan Debt

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Department of Education Secretary, Betsy DeVos, has been under fire for her failure to forgive student loans for more than 150,000 student loan borrowers. These borrowers have filed a lawsuit against both DeVos and the Department of Education, alleging they are being deprived of student loan forgiveness they have earned through the borrower defense.

DeVos has been accused of continuing to pressure former students of one of these institutions, Corinthian Colleges, Inc., to continue to pay their student loan debts. These same students say they were promised that their student loan debts would be forgiven under the borrower defense.

Bankruptcy Law

New Bankruptcy Laws Offer Relief for Veterans, Small Businesses and Farmers

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President Trump signed legislation into law on August 23, 2019, that offers bankruptcy relief that will benefit veterans, small business owners and farmers. Now that these changes are being implemented, they will have long-lasting, positive effects when it comes to access to bankruptcy relief for these individuals.

The first piece of legislation is the Family Farmer Relief Act of 2019. It doubles the debt ceiling allowed under the Bankruptcy Code for a “family farmer.”  This relief increases the number of farmers eligible to receive relief under Chapter 12 reorganization bankruptcy, which is a special form of bankruptcy that is designed to meet the needs of farmers facing financial difficulty.