Discharge Explained

After bankruptcy, as long as a person’s heart still beats, s/he can start over. Letting go of belongings may never be easy, but everyone lives with the consequences of their options and residues of their actions. Bankruptcy is not a tragedy. What is a tragedy would be to lie awake at night and wondering “what […]

Bankruptcy Players

In a bankruptcy case, creditors are individuals and businesses a debtor owes money to. Different types of debts take different priorities in getting paid off. Secured debts have to be paid in full or the debtor will lose the collateral. Unsecured debts don’t have collateral like a house or car that can be taken by […]

Credit Consolidation Companies

Credit consolidation agencies may be an alternative to bankruptcy when debts are not substantial or there are not many different creditors. A credit consolidation company usually charges fees based on the total amount of debt. Some fees can be as much as $1000/month. According to the U.S. Trustee and U.S. Department of Justice, many debt […]

Chapter 13 Car Ownership Deduction

In an opinion authored by Justice Elena Kagan, the Supreme Court ruled a Chapter 13 debtor may not deduct “ownership costs” of a car under the means test when he owes no further payments on the car. The opinion affirmed a decision of the Ninth Circuit Court of Appeals. There was a dissent by Justice […]

Parent’s Payment of Child’s Debt

A child gets easily in debt because many creditors such as credit card companies market to youth when they see their clean records. When a child is in debt, the parent may think twice about paying off the debt because it could be considered a gift, not income. The parent can help a child stay […]