Archive for the ‘Bankruptcy Help Articles’ Category
Debt after Death: What Happens when a Debtor Dies
What happens to your debt after you die is not a topic that’s likely to come up on its own at the dinner table, but it’s a good idea to talk about this matter anyway. It’s important for you and your loved ones to know when you’re responsible for each other’s debts post-mortem—and when you’re not.
A recent post from WalletPop.com offers an outline of what to expect after the death of a family member who owed money. Here’s a summary.
- Can debt be inherited? In most cases, debt does not automatically pass from one family member to the next, according to sources. That means that, if you receive a letter from a creditor demanding payment on a loved one’s debt after his demise, it’s a good idea to do some research before paying.
- Debt in community property states: One of the exceptions to the above rule has to do with state law. If you live in a community property state (find out here), you can inherit debt from a dead spouse (but not from a sibling or parent).
- The link between debt & inheritance: Another exception involves the relationship between a person’s debts and her legacy. If, for example, a pa
Back almost three years ago, one of the good bankruptcy attorneys in the Indiana Zuckerberg bankruptcy law office made a remark that I quoted in Bankruptcy in Indiana. That remark is truer today than ever: “No one can work in this field of bankruptcy law,” she said, “without thinking every day, ‘There, but for the grace of God, go I.’”
In fact, as a debt consolidation lawyer offering bankruptcy services in Indiana for more than twenty years, one of my missions is to help Indiana bankruptcy clients focus on the future rather than on their own past failures. Two of the top 15 myths about bankruptcy in Indiana have to do with failure:
- Filing bankruptcy means you’re a bad person
- Only deadbeats file bankruptcy
You can imagine, then, how fascinated I was, as a longtime bankruptcy lawyer in Indiana, by the notion that failure may actually be an important, even an indispensable, ingredient in success!
That’s exactly the concept presented by local author Robby Slaughter in his new book Failure: the Secret to Success. We Read more…
Indiana Bankruptcy Lawyer Stays Updated on GM
A bankruptcy attorney in Indiana – actually anybody in Indiana – has to care about the future of GM. And actually, as a debt consolidation lawyer offering bankruptcy services in Indiana, I’ve been sharing news about the GM bankruptcy with my clients and Bankruptcy in Indiana readers from the beginning.
A few weeks ago, I wrote these words: “Tracking Indiana employment statistics is like riding an emotional roller coaster.” Well, as I was telling some colleagues who are bankruptcy lawyers in Columbus, the GM saga has been like a roller coaster and then some, and the drama continues…..
The reason the fate of the GM stamping plant is such an item of interest for all the Anderson, Bloomington, Indianapolis and Columbus bankruptcy lawyers who work in the Zuckerberg bankruptcy law offices can be summed up in one word – jobs!
The Automatic Stay In Bankruptcy
The instant bankruptcy is filed, for either Chapter 7 or Chapter 13, a protective umbrella called the automatic stay is triggered which protects the debtor and the debtor’s property against the continuance of any action by any creditor. For example, the automatic stay would protect and STOP a pending foreclosure. Additionally, when filing a Chapter 13 bankruptcy, that injunction extends to anyone else who is obligated to repay your debts.
However, the automatic stay is not absolute in that a creditor may restart collection proceedings by asking the court for permission.
Further, there are limits on how long the automatic stay lasts. For exa
Back to School Doesn’t Have to Break the Bank
Each year, retailers and shoppers alike anticipate back to school sales with the intense focus of a professional athlete. This focus is a result of the high stakes of the event, as reports show the average family of four spends almost $600 getting their children prepared for school.
Even worse, the weakened state of the American economy has heightened the anxiety with which consumers approach late summer shopping. Fortunately, there are ways ensure that you don’t have to break the bank while shopping for school necessities.
To help frustrated consumers, the Sacramento Bee recently provided some wise strategies to carefully budget your school shopping.
Take Your Time
Don’t feel pressured to buy every single item your child needs before the first day of school. There may be some supplies you can buy later at a reduced price, as stores look to unload their excess inventory. Ask your child’s teacher which supplies can be purchased at a later date.
In addition, you don’t need to buy all your child’s clothes before school starts. According
Indiana Lawyer For Bankruptcy: What Does the Means Test Mean For Vehicles?
Even though I’m an Indiana lawyer for bankruptcy, it often happens that clients come to talk with me who are far from certain that filing bankruptcy in Indiana is the best thing for them. Sometimes, people just want my advice as a debt consolidation lawyer. Or perhaps they want my help to stop foreclosure on their home.
Needless to say, the subject of just how bankruptcy in Indiana works comes up in the discussion, and invariably that comes around to the Indiana means test. The means test is a standard by which the court determines if someone is eligible to file bankruptcy in Indiana, and which type of bankruptcy they qualify for.
As part of providing Indiana bankruptcy information, I explain that, if your income is less than the median income earned by Indiana residents during the last six months, you could probably qualify to file either Chapter 7 bankruptcy, or you could file under the new Chapter 13 bankruptcy laws of Indiana. If your income is less than the median, on the other hand, Chapter 13 could be your only option.
Once I’ve explained the means test to my clients, my next step as a bankruptcy attorney in Indiana is to explain that federal law actually sets standards for each kind of expense. There are allowable amounts that people who file bankruptcy in Indiana are allowed to keep for their own use, to support themselves and their families, before they’re expected to make debt repayments. For example, one reader asked about his family of six, and was told that the allowance would be around $1900 a month for food, housekeeping supplies, apparel and services, personal care products and services, and miscellaneous.
Well, there’s an allowance for car expenses as well, which include lease payments or car payments, gasoline, and maintenance. In the Midwest region, for example, the monthly vehicle allowance is $210 for one car, $420 for two.
One of the Columbus bankruptcy lawyers from the Zuckerberg bankruptcy law offices there brought an interesting case to my attention. In this court case, debtors had filed Chapter 13 bankruptcy and had claimed a vehicle allowance as part of their allowable expenses. The thing was, though, they both owned their cars free and clear. The question before the court, then, was – could they still claim the car expense allowance and use the money for other expenses?
The court’s answer was, very simply “yes”. These two debtors had no monthly car loan to pay or lease obligation, either prior to filing bankruptcy or now, but they were allowed to claim an allowance for avehicle expense anyway!
Goes back to what I was saying yesterday – all’s fair in bankruptcy!
Contact a claims company for mis-sold PPI
Recently we have stumbled across a website that deals with ppi claims for people in the United Kingdom who have taken out a credit card or a loan in the last few years. PPI is a type of insurance policy that is aimed at these people and its sole purpose is to protect them in the event that they cannot earn an income because they have had an accident or developed an illness.
However, with this type of insurance policy there are problems. The main problem that has been reported frequently is that payment protection insurance is often mis sold. The end result is that the customer can then put in a claim to be refunded the premiums that they have already paid into their PPI policy.
The good news is that it is not uncommon for the payouts from this type of claim to be fairly big. Of course, it would depend on how much you have actually paid into your policy, and also what type of policy you actually have. Read more…
So many consumers have complained about debt settlement companies that the federal government has finally taken some action.
Yesterday, the Federal Trade Commission announced a new restriction on debt settlement companies which is designed to address the growing nationwide problem of so-called debt relief companies making outlandish promises of success, but ultimately failing to do anything.
Up-Front Fees Charged by Debt Settlement Companies to be Prohibited
The new rules, which will take effect in the fall, will prevent debt settlement companies from charging any up-front fees before they settle or reduce a customer’s credit card debt.
I have reported previously that I regularly meet with clients who were promised the moon by debt settlement companies; yet these companies ripped them off after charging large up-front fees, failing to achieve settlements, and leaving the consumers in a worse position than they were to begin with. I ultimately end up filing a bankruptcy proceeding for many of these clients. S
Payday Loan Debt Help Lawyer Applauds FTC Complaint
Offering payday loan debt help is a big part of my work as a debt consolidation lawyer providing bankruptcy services in Indiana, and I was very glad to read about a Federal Trade Commission crackdown on one payday loan operation (Consumer Bankruptcy News, May 6, 2010).
When people are undergoing financial troubles, one of their biggest concerns, I’ve found, is the possibility their wages will be garnished. Under the new bankruptcy laws of Indiana, as is true under federal law, employers must obey court orders to garnish an employee’s wages. The only time a creditor can garnish wages without having a court order is if the creditor is a federal agency.
All of the Anderson, Bloomington, Indianapolis, and Columbus bankruptcy lawyers who work in the Mark Zuckerberg bankruptcy law offices, like myself, are used to helping clients prevent, or at least put a halt to, wage garnishment through bankruptcy’s automatic stay. The automatic stay is a court order that goes into effect as soon as someone files personal bankruptcy in Indiana.
The reason the FTC has charged at least a couple of online payday loan operations with illegally attempting to garnish debtors’ wages is that they did not obtain court orders. The lenders were essentially passing themselves off as having the same collection rights as the government.
After almost twenty five years as an Indiana lawyer for bankruptcy, I’ve seen my share of abusive payday loan practices. As a special alert to all my Indiana bankruptcy clients and readers, the payday loan companies named in the FTC suit are Eastbrook, LLC (also doing business as Ecash and GeteCash) and LoanPoint, LLC.
In writing about bankruptcy matters over the past three years, I’ve made no secret of the fact that I do not like payday lending. Whil