On Thursday, November 17, 2022, the Justice Department announced new guidelines in coordination with the Department of Education, which may significantly help debtors discharge student loans in bankruptcy. The new guidance aims to make it easier to have federal student loan debt discharged in bankruptcy – a particularly difficult legal process under the previous policy. The move represents the most substantial shift by the federal government on the discharge issue in decades. Read on to learn what these changes to student loans in bankruptcy may mean for you.
[Read more…]
Steps to Take When Preparing for Bankruptcy
If you’re contemplating filing for bankruptcy, there are some essential do’s and don’ts to be aware of. With nearly 20 years as a bankruptcy law firm, we have key insights on the best steps to take. Here is what we recommend when it comes to preparing for bankruptcy.
How to Reestablish Credit after Bankruptcy
There are many myths which hold that it takes anywhere from 3-5 years to reestablish credit after discharging debt under Ch. 7 of the bankruptcy code. These same myths hold that you won’t be able to purchase a new car or house, and that credit card companies will not find you credit worthy for several years. While this myth may hold true in some very rare circumstances, it is generally a false statement that should be ignored by most consumers. [Read more…]
What Goes On When You File For Chapter 7 Bankruptcy?
The very first and the most immediate thing that happens when you file for bankruptcy is the stay order comes into effect. As such, if your home was going to be foreclosed or if you were going to be sued, Chapter 7 bankruptcy filing is going to put a stop to all of these. None of the creditors and the collection agencies can pursue you for collection or call you for the payments. Nobody can go on garnishing your wages or bank accounts, even if you were a defaulter and there was a judgment against you. Because bankruptcy is a legal proceeding, it is not only you but the creditors and lenders too who will be required to follow the laws with regard to bankruptcy.
[Read more…]
Can Bankruptcy Prevent Eviction?
A common question that is often asked is can bankruptcy prevent eviction?
Whether or not your landlord can evict you if you declare bankruptcy depends solely on your specific circumstances. As long as you’re not behind on your rent, and as long as you keep paying your rent, your landlord should never even have to know about your bankruptcy unless you chose to tell them. The truth is that your landlord cannot evict you simply because you filed for bankruptcy.