No one enjoys going through bankruptcy. It is often the last resort, after months or even years of stressing about the bills, foreclosure, repossession, creditor harassment at home and work, and feelings of despair about your financial health. However, filing bankruptcy can definitely be a way to get a fresh start. To ensure that everything [...]
The goal behind filing a Chapter 7 bankruptcy is to receive a fresh start and discharge your debts. Discharge means the debtor is no longer liable for, and no longer has to pay, certain debts. Dischargeable debts in general include: unsecured debts such as credit cards, medical bills, deficiency balances owed on a repossessed car, [...]
Many businesses have been burdened by a sluggish economy in recent years and are having difficulty reaching their financial goals, let alone paying the bills. After all the sacrifices and long hours — and even after having experienced some success — many business owners find themselves facing the painful prospect of considering bankruptcy. Where to [...]
Imagine for a moment you are a business owner walking into work on Monday morning and your assistant hands you a lawsuit you just receive. In some cases, you may need to consult with a bankruptcy lawyer. The question is: Would a bankruptcy really be the right thing to do for my business? There are [...]
The law firm of Godbey & Associates recently settled litigation for a Chapter 13 client against a local hospital for violations of the Bankruptcy Stay and the Confirmed Chapter 13 Plan. In the case, the hospital received notice of the Chapter 13 filing and continued to send bills directly to the client over a span [...]
Yes. If your income is above the median income for a family the size of your household in your state, you may have to file a Chapter 13 (debt adjustment) case. The median income figures are state specific and change at least once a year; an experienced bankruptcy attorney will be able to review these [...]
There are four types of bankruptcy cases provided under the law: Chapter 7 is known as straight bankruptcy or liquidation. It requires a debtor to give up property which exceeds certain limits called exemptions, so the property can be sold to pay creditors. Chapter 11, known as reorganization, is used by businesses and a few [...]
Bankruptcy is a legal proceeding in which a person who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts [...]
In determining whether property is exempt, you must keep a few things in mind. The value of property is not the amount you paid for it, but what it is worth now. Especially for furniture and cars, this may be a lot less than what you paid or what it would cost to buy a [...]
In most cases, you will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. Even if your property is not fully exempt, you will be able to keep it if you pay its non-exempt value to creditors in Chapter 13. However, some of [...]