To determine whether you qualify for Chapter 7 bankruptcy, you may be subject to the means test, which will determine if your income is low enough for you to file a Chapter 7 bankruptcy and liquidate a good part of your debt. If your income is too high, you may be eligible for a Chapter 13 bankruptcy instead, where you would set up a payment arrangement to repay a portion of your debt. A Chapter 7 means test doesn't require that you are without income altogether. You may still qualify even … [Read more...]
Can I Discharge a Private Student Loan in a Bankruptcy?
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...]
Struggling With Debt? Affordable Bankruptcy May Help
Although there may be a negative connotation associated with filing bankruptcy for some, it is usually the first step toward financial health for those facing difficult financial circumstances. Very few people wind up in bankruptcy because they were spending too much or irresponsible with their finances. Rather, a bankruptcy case is more often filed by someone who is dealing with a difficult situation such as the loss of a job, unexpected medical bills or simply the mounting expenses of raising … [Read more...]
Chapters 11 and 13 Bankruptcy for Small Businesses
The popular teen clothing company PacSun announced today that it is seeking chapter 11 bankruptcy protection due to mounting losses and intense competition in the industry. PacSun said it would continue to operate all of its 600 stores and does not expect the bankruptcy filing to have an immediate impact on employees. PacSun plans to work on strategies to stay viable in a changing marketplace as they work through the bankruptcy process. Chapter 11 bankruptcy is intended primarily for the … [Read more...]