Bankruptcy Blog

With the COVID crisis, many individuals are finding themselves in a situation where bankruptcy is the only viable option to obtain a fresh start and climb out of debt. Many consumers have found themselves laid off or their hours cut back, and their financial obligations are piling up. New legislation was introduced in Congress in December of 2020 titled the “Consumer Bankruptcy Reform Act of 2020.” This proposed legislation would completely overhaul the current bankruptcy
Chapter 7 bankruptcy, also known as a straight or liquidation bankruptcy, is a type of bankruptcy that can clear away many types of unsecured debts. When you file for Chapter 7 bankruptcy, the court places an automatic temporary stay on your current debts. This stops creditors from collecting payments, garnishing your wages, foreclosing on your home, repossessing property, evicting you or turning off your utilities. The court will take legal possession of your property and appoint a bankruptcy
Signage is displayed outside a JC Penney Co. store in Chicago, Illinois.Christopher Dilts | Bloomberg | Getty Images Through mid-October, there had been 46 retail bankruptcies in 2020, according to a tracking by S&P Global.More retailers are expected to file for bankruptcy after the holiday season.Bankruptcy doesn’t always mean the end.Retailers including J.Crew and Neiman Marcus have already emerged from bankruptcy court, having filed for Chapter 11 in 2020. For the dozens of American retailers
2021 is just around the corner and it is time to start thinking about how you want it to be different. Resolutions are nice, but they rarely succeed. Goals are better. Ones that are reachable with a plan and steps to get you there. If one of your goals for the new year is to get out of debt, it is time to start planning. Getting your plan in place before the end of the
The benefit of this chapter is that you repay some of your debts—but usually not all—over the course of a three- to five-year repayment plan. But before the court approves your plan, you must fill out the official bankruptcy paperwork and prove that you are: up-to-date on tax filingswithin debt amount limitationsemployed and have enough income to cover the required monthly payment, andan individual, not a business (however, all financial aspects of a sole proprietor’s