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Category Archives: Bankruptcy Lawyer

How Bankruptcy Remedies the Economic System

We often hear people say that filing bankruptcy is “unethical” or “wrong” and that it isn’t good for society.  From a macroeconomic viewpoint, however, bankruptcy filings are good for the economy.  When a person files for bankruptcy, it frees up that person’s monetary flow. Without the bankruptcy system, debtors would remain unable to pay debts,… Read More »

Tax Liabilities and Implications with Filing Bankruptcy

Filing bankruptcy often involves tax implications, but not in the ways you might think.  Filing bankruptcy itself is not a taxable event.  However, there could be tax implications if property is sold to pay creditors, or if debts are forgiven by creditors. Typically, when you owe someone $600 or more and they cancel or forgive… Read More »

What Are Preference Payments in Bankruptcy?

When you file bankruptcy, there are rules established by the Bankruptcy Code. One rule addresses payments made to creditors within 90 days of filing for bankruptcy. The name for these payments is preference payments. As the name implies, the creditor obtaining the payment receives preference over other creditors who are also owed money. The bankruptcy… Read More »

Filing Bankruptcy Before a Divorce

Whether financial stress is a factor before or after divorce, bankruptcy and divorce are legal actions that are often interrelated. When planning for divorce, it is important to understand the consequences of your timing for filing bankruptcy. The advantages of filing bankruptcy prior to divorce are: Simplifies issues in the divorce, i.e. neither party gets… Read More »

Advantages of Using a Loan Modification Lawyer

Many people today have mortgage loans they can no longer afford, and worry about avoiding foreclosure and filing for bankruptcy. Loan modification may be an alternative to bankruptcy in some cases; however, trying to deal with a lender on your own can be difficult. Many bankruptcy attorneys negotiate with lenders on behalf of individuals who… Read More »

How Does Bankruptcy Deal with a Deficiency Judgment?

Once a court grants a deficiency judgment to the creditor, the creditor may be able to take various actions to collect payment. The creditor can put a lien on your bank account or garnish your wages, depending on state laws. How long does the lender have to obtain a deficiency judgment? That depends on the… Read More »

Con Artists Involved in Bankruptcy Abuse

In addition to the fractional interest transfer scam (discussed in another blog), there are other similar scams: The con artist offers to end foreclosure problems and collects monthly mortgage payments from the homeowner, telling the homeowner that the foreclosure is being worked out.  Unbeknownst to the homeowner, the perpetrator either forges the homeowner’s name on… Read More »

What Are Motions from Relief of Stay?

Filing bankruptcy triggers an automatic stay, which is a court order called an injunction that prevents creditors from further debt collection efforts.  The stay usually halts foreclosure, repossession, wage garnishment, lawsuits, and other creditor actions against you. A motion for relief from stay is a motion that a creditor files with the court to relieve… Read More »

Reasons to Save Your Bankruptcy Paperwork

Not too long ago, sub-prime loans and other fraudulent lending practices lead to the housing market scandal, causing many homeowners to face foreclosures and file bankruptcy.  The downfall of Countrywide Home Loans Inc. opened the door to compensation for many homeowners who were victims of their unfair practices.  Countrywide clients who saved their bankruptcy and… Read More »

Does Filing Bankruptcy Relieve Any Tax Debt?

How filing bankruptcy affects tax debts varies greatly from case to case and depends on individual circumstances, the type of bankruptcy filed, and court decisions. However, in all bankruptcies, one factor never changes.  The only tax debt that bankruptcy may provide relief for is income tax debt. If the IRS has not filed a lien… Read More »