When financial difficulties become overwhelming, seeking a fresh start through bankruptcy can be a viable solution. Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” offers several benefits that can help individuals regain control of their financial well-being.
Facts About Bankruptcy and Divorce – Things You Should Know
Bankruptcy and Divorce
Divorce can be difficult in itself, but adding the stress of debt and bankruptcy can make it unbearable. It isn’t uncommon for one or both spouses to declare bankruptcy before or after a divorce. Debts and assets are divided and sometimes it can be too much for one partner or both to handle.
One thing to remember about divorce and assigning debt is that it’s a court-ordered judgment. When you file for divorce or enter into a separation agreement, stipulation or settlement of divorce, and one party agrees to pay off the marital debts, it is not likely to be removed by bankruptcy, at least in chapter 7. Chapter 13 can still provide a way to discharge these obligations. Creditors have no interest in how or who pays the debts, so even in bankruptcy they can go after the other spouse if the debt is co-signed to that person also.
The Truth About Debt Management Plans and Why They Fail – Part 1
Many consumers who struggle with unpaid bills have come across an offer that seems too good to be true. The offer comes in the form of Debt Management Plans (“DMP”) from a debt settlement company and it may go something like this:
“For a fee, a professional debt management company will help you get rid of your debt for as little as half the amount of debt you owe.”
Most people will admit that offer of debt management plans to settle all your debt for half of what is owed is a tempting offer to consider. This is especially true when facing financial distress.
Sound Like a scam? The answer is that DMPs are legal solutions for consumers. However, hiring a debt settlement company is fraught with risk and there are things that consumers should know before entering into an agreement with a debt settlement company.
Free Tips for Preparing to Consult with a Bankruptcy Lawyer in New York
Over the years Dantzman & Dantzman has spoken with hundreds of prospective bankruptcy clients. For a variety of reasons, such as feelings of guilt or embarrassment, pride or just plain neglect, it appears that a lot of people wait too long before coming in to get started. Clients often wait until the very last minute before consulting with a bankruptcy lawyer for help. In many instances, if clients would’ve contacted us sooner, we could have prevented them from cashing in their retirement funds, selling off assets or waiting until their car or home was repossessed or foreclosed, in many cases the client’s wages are already being garnished. All of these things could’ve been prevented if they would have come in sooner. That is why Dantzman & Dantzman offers a free consultation, so clients can come in, meet face-to-face with an attorney, get their questions answered, and quickly make an informed decision. So the bottom line is don’t wait. Take a proactive approach to deal with your financial issues now.
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How Bankruptcy Filings Increased During the Economic Recession
You may have heard that our current economy is being classified as a “middle class recession.” This phrase was coined because statistics show that bankruptcies filed by individuals who make more than $60k per year increased significantly beginning in 2008 when the economic recession began.
Statistics show that since 2008 bankruptcies have increased among higher wage earners and professionals. Especially impacted are people in the real estate profession; namely contractors, developers and agents. Following down the line are developers, builders and the many related tradesmen. Few people have been left unaffected.