Monthly Archives: July 2024
What is the Downside of Chapter 7?
Credit score effect and social stigma are the two biggest downsides of Chapter 7 bankruptcy. Banks overstate the effects of these downsides, and unfortunately, many people believe bank propaganda. Filing bankruptcy lowers, but doesn’t “ruin,” a credit score. Usually, repeated late payments, chargeoffs, and other negative information have already ruined it. Additionally, while bankruptcy… Read More »
Is it Possible to Negotiate Credit Card Debt?
Yes, it’s possible to negotiate credit card debt without going to court and without filing bankruptcy. That’s good news for many Americans. In 2023, Americans used credit cards for nearly a third of their purchases. With interest rates exceeding 20 percent, at least in most cases, this strategy isn’t sustainable for long. Options are… Read More »
Knowledge and the Innocent Spouse Rule
The IRS recently reworked the innocent spouse rule as part of the fresh start program. This initiative waived some requirements for some payment plans and other programs. IRS bureaucrats didn’t make these changes out of the goodness of their hearts. The fresh start program was designed to increase voluntary compliance at a time when… Read More »
How to Maximize the Property Exemptions in a Consumer Bankruptcy
Yes, we admit this title sounds a bit dull. But for debtors with significant home equity or other large assets, maximizing the exemptions could be the difference between a fresh start, which the Bankruptcy Code is designed to achieve, and a total loss, which the Bankruptcy Code is designed to avoid. During bankruptcy, the… Read More »
Why Should I File Chapter 13?
Most people file Chapter 13 bankruptcy if their debts are too large to pay all at once, and they need a payment plan. Chapter 13 payment plans are much more debtor friendly than the “payment plans” creditors offer. Chapter 13 offers income-based repayment plans that usually last five years. Usually, that’s more than enough… Read More »
