Bankruptcy & Tax Refunds Each year, many people receive substantial tax refunds. If they are facing a lot of debt, they must decide whether using the tax refund to pay creditors will help them out of debt. If a debtor has one major creditor and can negotiate a payoff with the tax refund, this may be a good option. However, when a debtor has multiple creditors and paying one will not ease the debt burden, bankruptcy may be a better option. Some important factors when considering … [Read more...]
How did these medical bills get out of control?
Sometimes it's a catastrophic illness like cancer or a heart attack. Other times it's just high deductible insurance premiums or co-pays. Quite often, it is the combination of illness and missed work due to illness that prompts a medical bill problem. Whatever the cause, medical bills are one of the leading reasons why people file bankruptcy. Medical bills are unsecured debts – this means that there is no collateral for the debt. If you are unable to pay what the hospitals or doctors want … [Read more...]
I’ve been sued on a debt, now what?
Many people struggle financially for months or years before deciding to explore their options in bankruptcy. The last straw often comes in the form of a sheriff or process server showing up at the door with a summons. When this happens, it can be overwhelming. Faced with a lawsuit, bankruptcy may be your best option. When you consult with our office, we will let you know the pros and cons of bankruptcy. Pros: Bankruptcy offers relief Bankruptcies are filed in the United States … [Read more...]
Will I Lose My Assets By Filing Bankruptcy?
Many people are overwhelmed by their debt but afraid to consider bankruptcy because they might lose their car or house. When a person files for bankruptcy, she must list all her assets. However, many times there is protection for the asset called an exemption, or there is very little equity in the asset. Equity is the difference between what is owed on the lien against an asset and the value of the asset. For example, a debtor might own a 2010 Kia Sorento worth $10,000.00. If he owes … [Read more...]
What to Expect from Bankruptcy When You Owe Child/Spousal Support
Domestic Support Obligations (DSOs) Child support and spousal support are often referred to as domestic support obligations, or DSOs. Many individuals who file bankruptcy have a DSO, so this is a common topic of concern. First and foremost, domestic support obligations are not dischargeable. Debtors cannot get rid of any amount of child support, spousal support, or arrearages related to a domestic support obligation by filing bankruptcy. If you owe a co-parent or ex-spouse a support … [Read more...]
