On September 8, 2015, a federal judge halted garnishments in Gwinnett County, ruling that the state law that governs the process is unconstitutional. According to the Judge in the case, the law is flawed in three respects: (1) it fails to require that debtors be notified of certain exemptions that can be used to protect their […]
NPR had an intelligent story this morning about bankruptcy, making the point that bankruptcy may be the secret weapon to the US economy. Bankruptcy is designed to give people and businesses a fresh start, to allow them to shed the burden of a bad financial situation so that they can begin contributing positively to the economy […]
The means test is the test that determines who is eligible for a Chapter 7 bankruptcy. Most people facing bankruptcy would rather file a Chapter 7 because it completely eliminates most debts and you are not required to make monthly payments. If you do not pass the means test, you will have to file a […]
When you file a bankruptcy, you must disclose to the court all of your assets (what you own), all of your debts, and your current income as well as income from previous years. When filing a Chapter 13 bankruptcy, you must also prepare a repayment plan. The repayment plan does not necessarily have to repay […]
The bankruptcy code prohibits utility companies from shutting off or refusing to give you services because you filed bankruptcy. As soon as you file, this prohibition will go into effect. It is similar to the automatic stay that goes into effect when you file your case, but is slightly different. The most important difference is […]
Will filing a bankruptcy affect my credit? Yes, it will. However, if you are behind on your bills, home mortgage, or car payment, your credit is likely already being harmed. In many cases, filing a bankruptcy allows you to start to rebuild your credit. After you receive your discharge, your debts will be significantly reduced, […]
Yes, you can save our home from foreclosure by filing bankruptcy. Immediately upon filing a bankruptcy, a federal law called the Automatic Stay protects you and your property from collection efforts, including foreclosure. Therefore, without the court’s approval, your lender cannot foreclose upon you home once you file bankruptcy. Also, in a Chapter 13 case, […]
A bankruptcy discharge releases the debtor from personal liability for certain debts. After your debts are discharged, you are no longer legally required to pay those discharged debts. The discharge acts as a permanent order of the court that prohibits your creditors from taking any form of collection action against you, including legal process, or […]