Yes, bankruptcy can eliminate both back rent and eviction judgments. Eviction judgments are straightforward, as you have presumably already been evicted from the premises and are just dealing with the debt. The debt is treated as a general unsecured creditor in bankruptcy and subject to the bankruptcy discharge. Back rent is a bit trickier, as Read More »
Yes. Medical bills are general unsecured creditors in bankruptcy and subject to the bankruptcy discharge. Once the bankruptcy case is closed and discharged, the providers of medical services generally do not have an issue with providing further treatment, when necessary, though they are not legally obligated to do so. Many people who file for bankruptcy Read More »
Yes. Payday loans generally do not have any collateral attached to them and are not provided with any priority treatment under the Bankruptcy Code. They are general unsecured creditors and therefore subject to the bankruptcy discharge. Timing is important when it comes to payday loans. Since they are short-term loans by definition, the only argument Read More »
In most cases, yes, bankruptcy will stop wage garnishment. Upon filing your bankruptcy, the Automatic Stay of Bankruptcy is triggered, which is a federal injunction against your creditors that stops most collection activities, including wage garnishment. You will have to notify both the creditor and your payroll department that bankruptcy has been filed, and the Read More »
Yes. When you file for bankruptcy protection, under Chapter 7 or Chapter 13, the filing triggers an injunction known as the Automatic Stay of Bankruptcy. This is a powerful federal injunction against your creditors that stops most collection actions, including debt collection lawsuits. Upon receiving notice of the bankruptcy, the debt collector must dismiss the Read More »
Yes! The Bankruptcy Code requires that you schedule every debt you owe, even those that are contingent or uncollectible, in your bankruptcy petition. Debts are broken down into four categories on your bankruptcy petition: All debts are listed in bankruptcy, all creditors are notified of the bankruptcy, and all debts are treated in accordance with Read More »
Should you be lucky enough to recover a windfall, such as a hitting the lottery or a jackpot, while you are in an active bankruptcy, you must disclose it and it will become property of the bankruptcy estate. These types of windfalls are generally not exempt. In Chapter 7, you will likely be required to Read More »
There are two dates that must be defined in order to effectively answer this question. First, the date of the bankruptcy filing, as that is the date in the Bankruptcy Code that triggers your obligations. Second, the date that you became entitled to receive the inheritance, which is the date that the person passed away. Read More »
Tax refunds are always a challenging topic in bankruptcy because there are so many ways that different jurisdictions treat them. To get a definitive answer regarding your situation, you need to talk to an experienced bankruptcy attorney in your area. I will endeavor to explain to you the most common treatments of tax refunds in Read More »
The analysis for all of these questions is substantially the same. Remember, bankruptcy was designed to provide the honest but unfortunate debtor a fresh start on their finances. It was not built to leave you penniless and destitute, so no, you are not going to lose everything you own if you file for bankruptcy protection Read More »