What is bankruptcy?

Bankruptcy is a process by which consumers can eliminate or repay some or all of their debts under the protection of the federal bankruptcy court. For the most part, bankruptcies can be divided into two types – liquidation and reorganization.

In the short term, bankruptcy prevents continued efforts by creditors to collect debts. In the long term, bankruptcy can eliminate repayment obligations or provide for a restructuring of the debtor’s obligations, thus enabling the debtor to obtain a fresh start.

Alternatives to bankruptcy

It is often said that bankruptcy should be a “last resort” for financially troubled consumers. This advice is oversimplified. In some cases, legal rights can be lost by delay. It is especially important to get early advice about bankruptcy if...

On September 8, 2015, Michigan Congressman Dan Kildee introduced a bill in Congress intended to reduce the burden on students and their families caused by the ever-increasing costs of higher education and the financial stress of student loans.H.R. 3451. The proposed legislation removes student loans from section 523(a)’s exceptions to discharge, thereby clearing the way for student loans to be discharged in bankruptcy just as credit card debts and car loans are currently dischargeable. In astatement issued by Mr. Kildee’s office, the necessity for the legislation was founded on his concern that “[s]tudent loan debt has soared in recent years, and there are now over 40 million federal and private student loan borrowers who collectively owe $1.2 trillion in student loans. The average studen...

 We hear a lot of talk as of late about Post Traumatic Stress Disorder of PTSD.  But what exactly is it, do I have it and do I qualify for VA benefits?  In a nut shell PTSD is a psychiatric disorder that can occur following the experience or witnessing of life-threatening events such as military combat, natural disasters, terrorist incidents, serious accidents, or physical or sexual assault in adult or childhood.  People who suffer from PTSD often relive the experience through nightmares and flashbacks, have difficulty sleeping, and feel detached or estranged, and these symptoms can be severe enough and last long enough to significantly impair the person’s daily life.  

To be diagnosed with PTSD, a person must have all of the following for at least 1 month:

• At l...

         The term “Credit Repair” has been used a lot lately and some companies are offering it as a service, for a fee of course.  However, “Credit Repair” is something you can do on your own.  First thing you need to know is what is “Credit Repair”.  Credit repair refers to the act of clearing derogatory entries found on your credit report from the three (3) credit reporting agencies (Equifax, Experian and Transunion) with the goal of increasing your credit score.  Your credit report contains a history of your credit usage, both good and bad.  What you want to eliminate from your credit report are things like reported late payments, charge-offs, repossessions and entries from collection agencies. 

          The problem with credit reporting ag...

The simple answer is yes.  You will not be forced to sell your property to pay your creditors if you file for bankruptcy. You are allowed to keep your personal property and real estate if you file bankruptcy because of a legal term called “Exemptions”.  Exemptions allow you to exclude property from being taken from you when you file bankruptcy.

Your property can be exempt based on what type of property it is.  An example of this would be your home.  It is protected from forced sell by both the Florida Constitution Art X § 4(a)(1) and Florida Statute § 222.01 and §222.02 what is known as “Homestead Exemption”.  They allow you to keep your home no matter what the value of the home and whether or not there is a mortgage.

Another way you are allowed to keep your stuff...

    In 2014 student loan debt averaged $33,000.00. In some cases student loan debt comprises 69% of all debt owed by graduates.  This makes the class of 2014 the most indebted ever.  This debt affects the ability to purchase a home and car.  This adversely affects the economy as millennials represent the largest portion of our population.

    At one time debt relief was available for graduates saddled with student loans.  Before 1976 all education loans were dischargeable in bankruptcy.  In 1976 the debt relief for student loans was restricted when the law was changed so that government loans and loans from non-profits could not be discharged in the first 5 years of repayment. Then in 1984 debt relief from student loan was denied to private student loans....