Recent Blog Posts
Is an IRS Installment Agreement Better than Bankruptcy?
No, but it’s the next best thing. An IRS long-term repayment plan is usually a good option for people who don’t qualify for bankruptcy or cannot overcome severe bankruptcy-phobia. Bankruptcy qualification usually isn’t a problem. If people don’t qualify for tax debt discharge, which is likely, they usually qualify for Chapter 13 repayment plan… Read More »
Bankruptcy vs. Non-Bankruptcy Debt Negotiation
Consumer debt has reached the point that, among many people, financial stress causes symptoms that resemble Post Traumatic Stress Disorder symptoms, such as depression, trouble sleeping, and anger. These symptoms make it difficult to function at work. That affects earning power, which increases financial stress, which increases PTSD symptoms, and the downward cycle continues…. Read More »
Can I Keep My Car if I File Bankruptcy?
More people than ever come into our office with this question. Auto loan delinquency rates recently hit a thirty-year high. Regardless of the amount of delinquency, and usually regardless of the vehicle’s financial value, you can keep your car if you file bankruptcy. Otherwise, a car or truck is subject to seizure after just… Read More »
Tips for Buying a House After Filing Bankruptcy
Consumer bankruptcy gives distressed debtors a fresh financial start. Debtors who return to the starting line should be able to take advantage of favorable market conditions, such as low mortgage rates. During 2024, observers expect already low rates to drop by an additional 1 percent, down to an average of 5.75 percent. For a… Read More »
Will I Lose My Government Benefits If I Declare Bankruptcy?
Absolutely not. Government benefits, such as Social Security benefits, workers’ compensation benefits, and VA disability benefits, are exempt. Trustees (bankruptcy managers) have some power to intercept some government payments, such as tax refunds and stimulus payments. But this power does not extend to the aforementioned government benefits. Additionally, the Automatic Stay applies to government… Read More »
Can Bankruptcy Affect Your Security Clearance?
Yes, bankruptcy can affect your security clearance, but usually in a positive way. The financial problems that usually precede bankruptcy could affect your security clearance in a negative way, under DoD Directive 5220.6. This negative effect could be a security clearance downgrade, a suspension, or even a revocation. As outlined below, people who file… Read More »
Breaking Down Bankruptcy Student Loan Forgiveness Requirements
Student loan forgiveness has been one of the most controversial issues of the past decade. Many people believe former students need and deserve relief from oppressive loan payments. Others feel that tax dollars could be better spent elsewhere. In the midst of all the sound and fury, the Department of Justice amended its student… Read More »
Follow These Tips to Bounce Back from a Bankruptcy Filing
Thanks to consumer bankruptcy, honest yet unfortunate debtors get a fresh start. Some people squander that fresh start. Continued poor financial habits, like overspending and failure to save any money, usually cause former debtors to anxiously watch the calendar until the waiting period expires, so they can file bankruptcy again. Consumers who follow these… Read More »
Is Chapter 13 Bankruptcy a Good Idea?
If you want to take control of your own financial situation and protect your assets from creditor seizure, then yes, Chapter 13 bankruptcy (a/k/a the wage earner plan) is a good idea. Chapter 13 is also a good idea if you want the benefits of bankruptcy but don’t want some of the drawbacks, such… Read More »
Why Do People File Bankruptcy?
Quite simply, people file bankruptcy because they owe more money than they can pay. Such financial problems can happen to anyone. Following the 2008 financial crisis, five huge companies which collectively had over $1 trillion in assets filed bankruptcy. Their own misconduct contributed to these filings, but the economic downturn substantially caused them. Likewise,… Read More »