Recent Blog Posts
Chapter 7 and Chapter 13: A Quick Comparison
Both forms of consumer bankruptcy offer distressed debtors a fresh start. As outlined below, Chapter 7 and Chapter 13 have many other things in common as well. However, some significant differences exist, mostly with regard to the type of debt addressed (secured or unsecured). A Chicago bankruptcy lawyer does much more than fill out… Read More »
Does Bankruptcy Wipe Out Back Taxes?
Yes, bankruptcy wipes out back taxes. Taxes are unsecured debts, like credit cards and medical bills. The taxpayer simply promises to pay these debts. The taxpayer doesn’t put up any security, like a house or car. However, under the Bankruptcy Code, back taxes are priority unsecured debts. So, they’re only dischargeable in certain situations…. Read More »
What is Debt Settlement?
Debt settlement is an uncertain process that’s ideal for debtors with severe bankruptcy phobia. Many debtors refuse to consider bankruptcy as a solution to severe financial problems, just like some people refuse to climb on ladders (acrophobic), go into small spaces (claustrophobic), or are afraid of Santa Claus. Debt settlement produces results in some… Read More »
Should I File Bankruptcy to Avoid Foreclosure?
It’s a close call, but you should file bankruptcy to avoid foreclosure, for the reasons outlined below. Based on the statistics, many people erroneously believe the opposite is true. Since 2005, the bankruptcy filing rate has plummeted and the foreclosure rate has gone through the roof. In fairness, both bankruptcy and foreclosure have some… Read More »
Chapter 7 Bankruptcy and Government Benefits: A Primer
Social Security, workers’ compensation, VA disability, and other government benefits are essential to the fresh start the Bankruptcy Code guarantees. Many families depend almost exclusively on government benefits to pay bills and they have no employment or other options. So, if a bankruptcy or other court takes away government benefits, it essentially takes away… Read More »
How Does Bankruptcy Affect My Security Clearance?
Bankruptcy discrimination, or making decisions based on a bankruptcy filing, is illegal. However, some financial problems are a legitimate concern. But the financial problems that cause bankruptcy filings rarely fall into this category. Furthermore, when debtors face their financial issues and file bankruptcy, good things normally happen, especially in terms of a security clearance…. Read More »
Overcoming Emotional Barriers in a Gray Bankruptcy
Overall, the biggest emotional barriers in these cases may be bankruptcy phobia. Many debtors, especially debtors over 55 (gray bankruptcy), have an irrational fear of bankruptcy. This legitimate and debilitating condition often prevents people from seeking the financial help they need and deserve. A Chicago bankruptcy lawyer is more than an advocate. A lawyer… Read More »
What Disqualifies You from Chapter 7?
Either dishonesty or good fortune could serve to disqualify people from bankruptcy. This legal debt relief program is only available to honest and unfortunate debtors. Dishonest debtors lie on official forms or don’t cooperate with the trustee (person who manages a bankruptcy for a judge). Dishonest debtors also have debts related to fraud or… Read More »
Can You Really Negotiate Credit Card Debt?
In the financial world, almost everything is negotiable, including credit card debt. Excessive credit card debt is a serious problem in many households. The average person with credit card debt owes over $9,000. With average interest rates exceeding 21 percent, once people get on the credit card debt treadmill, it’s almost impossible to get… Read More »
Is an IRS Offer in Compromise a Good Idea?
If you meet minimum qualifications and are truly in dire straits, an amended IRS offer in compromise under the Fresh Start Program is a good idea. We examine those minimum qualifications below. An IRS offer in compromise could slash your past-due income tax bill. However, taxpayers should be aware that an OIC could negatively… Read More »
