Monthly Archives: September 2024
Should I File Chapter 7 or Chapter 13?
The answer to this question usually depends on the kinds of debts you have. Some people have issues with unsecured debts, like credit cards. The average credit card interest rate is over 20 percent, so the balance shoots up quickly. Other people have issues with delinquent unsecured debt, like past-due auto loan payments. Legally,… Read More »
Is Debt Settlement Worth It?
If bankruptcy is off the table, then yes, debt settlement is worth it. Some people don’t qualify for Chapter 7 because their income is too large and/or they don’t qualify for Chapter 13 because they have too much debt. Chapters 7 and 13 have some informal filing requirements as well. Other debtors have crippling… Read More »
Does Bankruptcy Stop Foreclosure?
Yes. As soon as debtors file their voluntary petitions, Section 362 of the Bankruptcy Code stops most creditor adverse actions. Additionally, consumer bankruptcy exempts home equity, making it almost impossible for the trustee (person who manages a bankruptcy for a judge) to liquidate a home. Some informal exemptions are available that extend this protection… Read More »
Does Bankruptcy Adversely Affect Government Benefits?
No. Many people are surprised to learn that government benefits are exempt assets in Illinois. Furthermore, the exemption isn’t value-based, like the home equity or motor vehicle exemption. Social Security Insurance benefits, SSD benefits, workers’ compensation benefits, VA disability benefits, and all other such benefits are 100 percent exempt. Federal or state pension plan… Read More »
Does Bankruptcy Affect My Security Clearance?
Yes, but in most cases, bankruptcy has a positive effect, not a negative effect, on your security clearance. In fact, Guideline F of DoD Directive 5220.06, the controlling rule in this area, basically encourages people with financial problems to file bankruptcy in order to protect their security clearances. Filing bankruptcy to cure financial problems… Read More »
