Archives for May 2016

Hiding Assets Prior to Filing For Bankruptcy Backfires

May 19, 2016

Tuesday, the FBI arrested eight people in Florida for an estimated $3 million dollars of bankruptcy fraud. The suspects, who include married couples with families, were believed to have hid their money and assets or illegally transferred them out of their names before filing bankruptcy. Federal agents said that one of the couples arrested at their condo in Miami Beach liquidated a certificate of deposit for nearly $150K and subsequently filed for bankruptcy without reporting the transaction. … [Read more...]

Unpaid Consumer Debt May Trigger Wage Garnishment

May 17, 2016

Old credit card debt, student loans or unpaid medical bills are catching up to many Americans. In fact, some employees in the U.S. may lose up to a quarter of their paycheck to collection efforts for unpaid debts. The recession, underemployment and a reliance on credit cards to bridge the gap during difficult times resulted in a number of Americans taking on substantial debt. Thousands of dollars spent on credit cards to make ends meet or pay for an unexpected event soon ballooned into higher … [Read more...]

Maxing-Out Credit Cards Prior to Declaring Bankruptcy Can Spell Trouble

May 13, 2016

Credit card debt is often dischargeable in bankruptcy, however if you purchase luxury goods or take out cash advances prior to filing, you may run the risk of losing the option to discharge those debts. In some cases a credit card company can file an adversary proceeding within your bankruptcy asking the court to make certain debt nondischargeable. If you take out a certain amount of cash advances on a credit card within 70 days of declaring bankruptcy, the bankruptcy law presumes the debt to … [Read more...]

Can I Discharge a Private Student Loan in a Bankruptcy?

May 6, 2016

Most student loans are nondischargeable under the bankruptcy code because they are insured by the government. But, what about private loans taken in the pursuit of higher education? Particularly those taken in pursuit of degrees beyond a bachelor level. U.S. bankruptcy code states that among the obligations that can't be cancelled include funds received as an "educational benefit". However, a recent ruling in New York discharged at least some of a loan taken out by an individual to attend … [Read more...]

Hiding Assets Prior to Filing For Bankruptcy Backfires

Unpaid Consumer Debt May Trigger Wage Garnishment

Maxing-Out Credit Cards Prior to Declaring Bankruptcy Can Spell Trouble

Can I Discharge a Private Student Loan in a Bankruptcy?

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Charles E. Covey, Bankruptcy Attorney