Did you know that the biggest reason people file for bankruptcy is medical debt? In 2013, CNBC reported that bankruptcies resulting from unpaid medical bills totaled nearly 2 million, making health care debt the number one reason why people file for bankruptcy. This outpaced bankruptcies filed due to credit card debt and potential property foreclosures.…
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Lien Stripping: Are Bankruptcy Filers Eligible?
Are you drowning in debt because of your housing payments? If you have second or third mortgages, also known as junior mortgages, you should be aware that you might be able to discharge them through lien stripping, a process that takes place during Chapter 13 bankruptcy. For example, if the value of your home is…
Does Bankruptcy Affect Retirement Accounts?
Recently, the New York Times had an interesting story about how seniors entering into retirement were utilizing bankruptcy to protect their assets. The piece focused on a retired Florida nursery owner, 66, who was being harassed by creditors, so he filed for Chapter 7 bankruptcy. “I wanted to leave money, not debt, to my grandchildren,”…
How Often Do High Income Earners File for Bankruptcy?
Nearly 60 percent of everyone who files for bankruptcy has an income of $30,000 or less annually, but that does not mean that those who make several times that per year are not at risk of filing for bankruptcy. In fact, some of the highest earning workers can and do end up filing for bankruptcy.…
Bankruptcy: Lenders Agree to Clear Credit Reports
Earlier this month, Bank of America and JPMorgan Chase announced that they would remove debt eliminated by personal bankruptcy filings from credit reports. According to the Consumerist, the updates align with consumer laws and the banks have agreed to update reports over the next three months. The updates could affect millions of people who have…
Do High Income Earners File for Bankruptcy?
Recently, there was an interesting story in the Las Vegas Review-Journal discussing former NFL players who have had to file for bankruptcy because of bad investments. The newspaper reported that a research paper by the National Bureau of Economic Research found that nearly 16 percent of NFL players drafted between 1996 and 2003 declared bankruptcy…
How Can Bankruptcy Help a Business Owner?
Are you a struggling business owner? We receive many inquiries from business owners asking how personal bankruptcy filings can affect debt obligations and assets. Unfortunately, there are no clear-cut answers to this. As a business owner, when you file for bankruptcy, there are legal considerations made between the various forms of debt you may have.…
How Will a Bankruptcy Affect My Credit?
How will a bankruptcy filing affect my credit? Will I be able to obtain loans or make purchases after the process is complete? Our firm often receives these questions from perspective clients. Keep in mind that a bankruptcy filing will put a dent in your credit score. Nevertheless, this short-term effect may be less detrimental…
