The Bankruptcy Code obligates a debtor to fulfill a number of duties to successfully complete a New York bankruptcy. Failure to do so can result in penalties ranging from dismissal to revocation of a discharge order to criminal penalties for bankruptcy fraud. 28 U.S.C. § 521 divides the debtor’s duties into ten subsections, and . . . → Read More: What Documents Must Debtors File to Meet Their Duties in Bankruptcy?
Hopefully with millions of Americans now covered by health insurance, medical bankruptcies will decline. Not a moment too soon, but health care costs are still rising and high medical bills will still put people into deep, unmanageable debt. A problem that often arises, though, is that bankruptcy doesn’t discharge people’s medical problems, so they . . . → Read More: Medical Care and Bankruptcy
Obtaining a discharge in a New York bankruptcy usually improves one’s creditworthiness just by eliminating bad debts, but that doesn’t mean a debtor’s post-bankruptcy credit score will be remarkably great. However, there are steps former debtors can take to raise their credit scores, many of which are discussed here. One option that doesn’t come . . . → Read More: Secured Credit Cards Can Help Improve Credit Scores After Bankruptcy
A commonly discussed topic in the news is the rising costs of higher education in the United States. Congress has tried to help parents (and grandparents) pay for their children’s higher educations in two ways. One is by allowing them to pay into a tax-protected entity frequently referred to as a “section 529 college . . . → Read More: What Happens to College Savings Plans in Bankruptcy?
The $50 billion National Mortgage Settlement (NMS) between the U.S. government and 49 states and five large banks was good news for some homeowners who were erroneously foreclosed on and evicted from their homes. Although homeowners only received $20 billion out of the agreement, some of the money was applied to principal reductions on . . . → Read More: Mortgage Settlement Ends as Drop in Bucket for Underwater Homeowners
There are more ways for a chapter 13 New York bankruptcy case to end than to begin. Hopefully it ends with a discharge or a completed repayment plan, but some endings aren’t so fortunate. In particular, a chapter 13 case can end in dismissal for any of eleven reasons according to the Bankruptcy Code (11 U.S.C. . . . → Read More: Avoid a Dismissal of Your Chapter 13 Bankruptcy Case
In some chapter 7 New York bankruptcies it’s common for debtors to still be earning an income sufficient to pay some of their creditors if they choose to. Often it’s a necessity like a car payment or a mortgage payment. However, some debtors suddenly encounter difficulties making their payments, particularly online. For example, automatic . . . → Read More: Sometimes It’s Harder to Pay Debts While in Bankruptcy
In times of economic weakness like these, losing money in a scam is likely to be much more damaging than in better days. Worse, financial insecurity makes people more vulnerable to fraud efforts. This blog has discussed mortgage scams, credit rehabilitation scams, and others. Most of these scams have been around for many years, . . . → Read More: 21st Century Scams That Can Send You Into New York Bankruptcy
The consequences of the U.S. Supreme Court’s recent unanimous ruling in a bankruptcy case aren’t that monumental for debtors considering New York bankruptcy. However, Law v. Siegel illustrates a few important points about exemptions that are worth knowing.
Here are the facts: Petitioner Stephen Law (don’t let the surname confuse you) filed chapter 7 . . . → Read More: Supreme Court Forbids Surcharge for Debtor’s Fraudulent Exemption
When an underwater rental property is involved in a New York bankruptcy case, the trustee usually won’t try to sell it, particularly if the debtor is current on the payments. However, some trustees might actually try to sell an underwater rental to the lender under certain circumstances. This can be a disappointment to some . . . → Read More: Why Trustees Might Sell Underwater Rental Properties to Creditors