Bankruptcy Blog

What is a bankruptcy discharge? Under the federal bankruptcy statute, a discharge is a release of the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer required by law to pay any debts that are discharged. The discharge operates as a permanent order directed to the creditors of the debtor that they refrain from taking any form of collection action on discharged debts, including legal action
What debts cannot be discharged in a bankruptcy? In a Chapter 7 bankruptcy (liquidation), the Bankruptcy laws will not allow a debtor to “discharge” certain types of debts. The most common “nondischargeable” debts are taxes, student loans, child support obligations, and criminal fines. However, there are exceptions to this basic rule, depending upon the facts of each particular case. For example, concerning taxes, it is important to know how old the tax debt is, whether
Credit Repair Information What is a credit bureau? There are three major credit bureaus in the United States: Trans Union, Equifax, and Experian. Credit bureaus are private, profit-making companies that gather and sell information about a person’s credit history. The bureaus sell the information to banks, credit unions, credit card companies, finance companies, insurance companies and others. The credit bureaus get most of their information from creditors. They also search court records for lawsuits, bankruptcy
How long does a bankruptcy stay on a debtor’s credit report? Can co-signers be protected if bankruptcy is filed? Yes. The filing of bankruptcy creates an “Automatic Stay” in favor of the debtor and any co- signers or guarantors of the debtor’s bills. In order to protect the co-signer after the filing of bankruptcy, the debtor will have to “reaffirm” or keep paying the debt in a Chapter 7 bankruptcy, and agree to pay the
Debt and the Elderly Meager cash flow, usually just Social Security. Too many of our elderly are enduring continuing stress and scrimping on food, medical treatment and prescriptions, and emergency cash reserves. It is important to know that Social Security payments and pension payments are exempt from seizure by creditors. In other words, the creditors can never garnish or seize any portion of these monthly payments. The elderly are frequently “judgment proof”, which means that