Foreclosures lead to bankruptcies in NYC

When you can’t pay your mortgage, the lender will put your home into foreclosure, usually for reasons beyond your control. In some New York City boroughs, such as Queens, Super Storm Sandy caused many of the foreclosures because people could not keep up with paying their mortgage, temporary housing and repairs. According to Christie Peale, […]

What is the Brunner Test

Under current law, student loans are not dischargeable in bankruptcy in the same manner as other unsecured debts. According to statute, you must prove that repayment of the loan will cause you and your dependents undue hardship. There is no precise statutory definition of undue hardship and it is a difficult hurdle to get past. […]

Tax Debt Helps in Bankruptcy

Even if you have a significant amount of ‘consumer debt,’ as long as your ‘tax debt’ is more than your consumer debt, you may be able to avoid taking the means test, no matter what your monthly income. You may also still be able to file Chapter 7 bankruptcy despite earning more than the allowed […]

Famous People who have filed bankruptcy

The purpose of filing for bankruptcy is to enable a person who has through bad luck, such as medical bills that outran health insurance, bad decisions, such as unsound investments or through a crime, such as fraud to have their debt forgiven so they can get a new start in their financial life. People with […]

Over 60% of Bankruptcies Caused by Medical Bills

Unless you are uber-rich, you may only be an illness away from bankruptcy. As early as 2009, CNN reported that 62 percent of all United States personal bankruptcies could be traced to medical bills. Even more shocking, many of those forced into bankruptcy by medical bills are middle class people with health insurance. What is going on? Will […]