Some people believe that filing for bankruptcy can permanently destroy your creditworthiness. However, this is not true. Your credit scores are not permanent. While a record of the bankruptcy will remain on your credit report (for seven to ten years after the file date), you can start to improve your scores after filing. Pull your…
Education Department Wants to Review Federal Student Loan Bankruptcy Rules
The Department of Education has said it wants to review how federal student loans are discharged in bankruptcy. Student loans are currently very difficult to discharge in bankruptcy due to the “undue hardship” requirement. Unlike other forms of debt in bankruptcy, you must first demonstrate that repaying your student loans would make you unable to…
How Can I Resolve Unaffordable Medical Bills?
Medical bills are a common reason why people suffer financial hardship. Even if you have a decent health insurance policy, it is still possible to accrue tens of thousands of dollars in medical debt. You may have heard stories of some people with insurance policies receiving bills in the tens of thousands of dollars. These…
Are You Prepared for a Financial Emergency?
A new survey published by Bankrate.com, a personal finance website, found that only 39 percent of Americans could cover a $1,000 emergency expense. Job loss, surprise medical bills, property damage or a chronic illness could very easily upend the financial lives of these individuals. There are many, many ways to prepare for a financial emergency.…
What are the Most Common Myths About Filing for Bankruptcy?
Bankruptcy has a bad reputation for the wrong reasons. It is also poorly understood by many in our society. Some of the myths about bankruptcy can make people less likely to file even when they would benefit. Common myths about bankruptcy include but are not limited to: It permanently ruins your finances. Bankruptcy attorneys are…
Why is it Difficult to Discharge Student Loans in Bankruptcy?
Student loan debt in the US has grown to an astonishing $1.4 trillion dollars. While some people have an easy time making monthly payments on their student loans, others struggle or have defaulted. It is commonly believed it is impossible to file for bankruptcy on student loans. However, it is not impossible, just very difficult…
