Divorce is a process that can result in significant financial implications. This is because it isn’t just a separation of two individuals but also their assets, debts and financial responsibilities. The financial toll of divorce can be substantial, often leading to...
When Legal Matters Become Personal
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Can I be denied medical care for filing bankruptcy on medical bills?
Most large health institutions simply take it on the chin when you don't pay. They realize that if they stopped seeing their patients, then their patients will simply go to their competitors. While there is neither a law, nor an ethical rule, requiring that they...
When can someone buy a house after filing for bankruptcy?
Bankruptcy does temporarily result in a drop in someone’s credit score and a mark on their credit report. Of course, having a single, major negative mark on a credit report can actually do less harm than having multiple judgments and past-due accounts visible to...
Median income figures increase substantially
The Department of Justice recently adjusted the median income figures, which are effective in bankruptcy cases filed after May 15. 2023. The median income is an important figure, as debtors below that figure are almost always assured a chapter 7 discharge. For chapter...
What does a trustee do in a bankruptcy case?
When you file for bankruptcy, a trustee will be appointed to oversee and manage your case. Their primary role is to ensure that the bankruptcy process runs smoothly and that both you and your creditors are treated fairly. The trustee's responsibilities cover a wide...
Payday loans are a vicious cycle
Payday loans often become a desperate consumer’s final lifeline to get by. But interest rates can actually exceed 100% per annum. A recent article discusses pending legislation in Minnesota to cap interest rates at “only” 36%. My experience is that payday lenders are...
Consumer Debt Hits Record High
A recent article noted that consumer credit card debt has spiked in the last two years, going from near all time lows to all time highs. Most people believe that this is due to the end of the pandemic stimulus payments, combined with inflationary pressures that have...
Supreme Court rules that fraud incurred by a partner makes a debt accepted from discharge
In a unanimous decision, the United States Supreme Court recently determined that the fraud exception from getting a discharge in bankruptcy, applies equally when the fraud was incurred by a debtor's former partner, and not the debtor itself. Debts that are...
Credit bureaus reduce medical debt reporting
A recent article indicated that there has been an 18% decrease in the amount of medical debts that are being reported on credit bureaus. This is due in part to new policies whereby medical debts under $500 are no longer being reported to the credit bureaus, nor are...
What is the means test for filing for Chapter 7 bankruptcy?
Many people qualify for bankruptcy, but not every request for a discharge is approved and not everyone can utilize the same type of bankruptcy filing. Individuals who are seeking Chapter 7 relief, for example, are subjected to a means test. Only if they pass this test...