When you are overwhelmed by debt, it can feel like you don’t have many choices. Continuing to pay interest only on your bills that never seem to go down can make you financially and emotionally weary. It is possible that bankruptcy has crossed your mind, but perhaps you aren’t sure how you feel about it.
The means test was created to prevent debtors from abusing the bankruptcy system. Although bankruptcy is a public right, the legislature does not want people filing for bankruptcy that truly does not need to. Bankruptcy is meant to give a fresh start to those who cannot and will not be able to pay their debts,
Debtors file for bankruptcy to have debts discharged in order to have a fresh financial start. The discharge prevents the debtor from having to re-pay debt that their financial future dictates that they will not be able to pay back. However, not all debts are dischargeable under federal bankruptcy law. When making the decision whether
If a creditor is successful in suing a debtor and obtains a judgment against the debtor, the creditor has options to collect the money owed to them on the judgment. Two common methods of collection are wage garnishment and bank account restraints. Wage garnishment occurs when an employer is required to withhold the earnings of
If you plan to file for bankruptcy, you are required to participate in consumer credit counseling from a government approved agency within 180 days of the filing. Pre-bankruptcy counseling is designated to ensure that the debtor is an appropriate candidate for bankruptcy. The counseling session should include an evaluation of the debtor’s personal financial situation, a discussion