Debt Settlement Vs. Bankruptcy

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. […]

Means Test Figures in New York

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 do not need to.  Bankruptcy is meant to give a fresh start to those who cannot and will not be able to pay their debts, […]

The Cash Advance Complication

Individuals incur debt in a variety of ways.  From loans to purchases to interest, debtors who file for bankruptcy tend to accumulate debt from several sources.  Cash advances from credit cards are an additional source of debt. Generally, after a debtor files for Chapter 7 bankruptcy, the listed debt will be discharged.  However, cash advances […]

Should You Use Your Retirement Savings to Avoid Bankruptcy?

When trying to pay off debt, many people turn to their retirement savings.  Some debtors cash out their 401(k) plans in an attempt to avoid bankruptcy.  Of course bankruptcy is not something any debtor strives for.  After all, bankruptcy can come with negative consequences.  Thus, debtors usually want to pay off debts and are willing […]

The Bankruptcy Discharge

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 […]