Photo by Bermix Studio on Unsplash. You could pay your medical bills through many forms of borrowing—from putting them on a credit card to a home equity loan. What makes sense? About one-fourth (26%) of American adults (18-64 years old) reported that they or someone in their household had problems paying medical bills during the previous year. This is according … Read More
Photo by rupixen.com on Unsplash. Making credit card purchases or cash advances a short time before filing bankruptcy can result in fraud allegations. Good timing can avoid this. Last week’s blog post introduced the so-called “presumptions of fraud” in bankruptcy. Today we get into dealing with this issue through smart bankruptcy timing. Bankruptcy Timing to Avoid the Presumption of Fraud … Read More
Photo by Avery Evans on Unsplash. Presumptions of fraud make a credit card or cash advance debt harder to discharge—write off in bankruptcy. They’re usually easy to avoid. This blog post continues a series about the smart timing of your bankruptcy filing started back in July. (It’s been interrupted by urgent blog posts related to the pandemic—about unemployment benefits and … Read More
Using a credit card shortly before filing bankruptcy doesn’t seem right. The law agrees. Writing off this kind of debt can be a problem.
A judgment lien effectively converts a debt that was secured by nothing into one secured by your home.
If a creditor doesn’t file a timely proof of claim on a debt in your Chapter 13 case, you pay nothing on that debt.
Creditors will be a little less likely to challenge the writing off of recent uses of credit.
If you can, don’t do cash advances during the holidays if you’re contemplating filing bankruptcy. If you do, understand the rules about them.
Sometimes you donât need the extra help of the Chapter 13 âco-debtorâ stay to protect your co-signer from your debt problems.
Sometimes you don’t know who exactly you owe on a debt. Or whether you owe a debt at all. List all possible creditors to make sure.
Two steps: 1) Hiring an attorney stops collection calls and some other creditor actions. 2) Filing bankruptcy stops everything else.
Credit card debt is almost the same as it was 10 years ago, vehicle debt is only modestly higher, but student loan debt is 4 TIMES as much.
Avoid using credit during the holidays if you’re thinking about bankruptcy. But if you do so, or are tempted to, read this.
Most debts are written off–“discharged”–in bankruptcy. But not “fraud” ones. Watch out for creditors’ use of the “presumption of fraud.”
Because of financial tweaks to the Bankruptcy Code, as of April 1 you are a little less likely to have to repay some of your recent use of credit cards.
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