Category Archives: Bankruptcy
Does Bankruptcy Get You Out Of Back Taxes?
Consumer bankruptcy shields people from most kinds of creditor adverse action, including adverse actions based on back taxes. The IRS aggressively goes after unpaid taxes. These unpaid taxes total about $500 billion, which is roughly 10 percent of the government’s annual budget. We may think about how a 10 percent income hike would change… Read More »
Why File Chapter 13 Instead Of Chapter 7?
Quite simply, people file bankruptcy, whether it’s Chapter 13 or Chapter 7, because their debts exceed their incomes. American households owe almost $17 trillion. The consumer debt load increases pretty much every year, often faster than wages increase. As outlined below, people file under different chapters of the Bankruptcy Code depending on the kinds… Read More »
Does Bankruptcy Affect Your Security Clearance?
Although most people believe the answer to this question is “yes,” the B-word does not appear in Guideline F of DoD Directive 5220.6, the relevant document in these situations. However, Guideline F does touch on a number of bankruptcy-related matters. It simply says some very unexpected things about the relationship between bankruptcy and a… Read More »
Can I File Bankruptcy if I’m An Social Security?
Overall, pretty much anyone can file bankruptcy at pretty much any time. But for the 66 million Americans who receive Social Security benefits every year, consumer bankruptcy filings have special issues. These people are understandably hesitant to do anything that may compromise their Social Security benefits. For most families, this monthly check is the… Read More »
Top Five Reasons People File Bankruptcy
Overall, there is only one reason people file bankruptcy. Their assets and incomes greatly exceed their debts and obligations. As a rule of thumb, if your current and delinquent secured and unsecured debts are more than three times your annual income, there is no realistic way to pay these debts off. Many families are… Read More »
What Is The Downside To Filing Chapter 13?
Negative impact on a credit score, which is not as bad as many people think it is, may be the biggest downside to filing Chapter 13 in Illinois. A good credit score, above 700, may drop by as many as 200 points. However, most people who file Chapter 13 do not have good credit… Read More »
Top Five Bankruptcy Exemptions In Illinois
Many people think that personal bankruptcy is like a Monopoly bankruptcy. Filing bankruptcy means you leave the game and have no chance to re-enter it. However, personal bankruptcy is different. It gives a fresh start to honest yet unfortunate debtors. Debtors cannot get such a reboot if they lose most or all of their… Read More »
What Is Chapter 7 And How Does It Work?
The current combination of high consumer debt, high inflation, and high interest rates is enough to push any family’s ability to pay monthly bills to the breaking point. If unsecured debts, like credit cards and medical bills, are the primary problem, Chapter 7 is an excellent solution. As outlined below, Chapter 7 eliminates such… Read More »
How Does Bankruptcy Affect Home Buying?
In a word, it’s complicated. It all starts with the purpose of bankruptcy, which is not to punish debtors, but to give them a fresh start. Frequently, this fresh start involves a future home purchase. So, a bankruptcy filing shouldn’t adversely affect this future decision. Sometimes, the situation is different. A family is in… Read More »
Student Loan Forgiveness Program On Hold
After a second federal court declared the President’s student loan forgiveness program was illegal, the Department of Education shut down the program, at least for the time being. When administration officials closed the application portal, about 26 million people had applied, and 16 million applications had been approved. However, because of court rulings, none… Read More »
