As with most issues, the answer to this question is it depends. Income is a huge factor in budgeting. Before your free bankruptcy consultation, attorney Marcia Moellring requests clients fill out a budget worksheet. This allows her to analyze a person’s specific situation and determine if bankruptcy is an appropriate option. Some people can be helped by prioritizing their income distribution or finding ways to cut back expenses. If a creditor action is severe, a chapter 13 repayment bankruptcy … [Read more...]
Bankruptcy & Tax Refunds
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...]
Divorce & Bankruptcy
When to file the bankruptcy The stress of dealing with overdue bills and creditors calling can put a strain on any marriage. Frequently, divorce causes debt, or financial difficulties are a big factor in leading to divorce. If you are considering a divorce and have substantial joint debt, you should file bankruptcy before a divorce is final. By doing this, the debt component is greatly simplified in the divorce proceeding - if not eliminated completely. This not only takes away the worry … [Read more...]
