If you thought that claiming Chapter 13 bankruptcy is harmful to the economy, it’s time to think again. A 2015 study published in the American Economic Review showed that bankruptcy could actually help the economy.
What the Study Found
This study analyzed 500,000 bankruptcy filings against administrative tax and foreclosure information to determine the economic impact of Chapter 13 bankruptcy,...Read More
The number of millennials filing for bankruptcy has grown at an alarming rate. Considering the prosperous period between 1980 and 2000 that this generation was born into and raised, most have found themselves in a financial rut with debt that they cannot dig out from.
Reasons for Debt
For a long time millennials have been the butt of jokes by older generations about having poor lifestyle...Read More
Chapter 7 bankruptcy could allow you to get rid of a significant amount of your debt. However, some debt cannot be discharged through bankruptcy.
Debt that Cannot Be Discharged
There are numerous types of debt that bankruptcy won’t usually eliminate, including:
Federal student loan debt (unless you can show a hardship)
Some tax debt, e.g. back taxes owed to the IRS
Unscheduled debts, meaning...Read More
The collective perception about how people view debt has changed. During the past three decades, living in debt has become the new norm to many baby boomers. Debt doesn’t carry the stigma it once did, which has begun to alter the way that people spend and save.
Research from insurance provider Allianz Life provides some insight on the current view of debt among baby boomers. Almost half of...Read More
Will 2018 be the year that you finally take control of your finances and take the steps you need to get out of debt? Even if you have the best intentions, this can be a difficult task. In fact, a recent study showed that almost two-thirds of Americans are incapable of passing a basic financial literacy test and that number is growing, year after year. If you have difficulty with your finances,...Read More
In Arizona law, until such time as your name is no longer on the title to your home, you should continue to pay your homeowner’s association fees that are assessed. Walking away after filing a bankruptcy is sometimes not enough to eliminate your personal obligation.
Many times clients call me and ask if it is possible for them to negotiate with their creditors to avoid filing a Bankruptcy. My answer is usually yes, but they better have some cash. While you may not need an attorney to negotiate with your creditors, and may be able to avoid filing a Bankruptcy, you will need to negotiate lump-sum cash settlements with your creditors because the majority of...Read More
No. When my youngest son’s baby tooth was just hanging there, I gave it a little tug and it came out without the assistance of a dentist. Now that his other tooth is a little bit crooked, using some pliers to straighten it out is not an option – he will need a dentist. I am not saying that preparing a bankruptcy is the same as straightening my son’s tooth. I am saying that there are...Read More
When filing a Chapter 7 or Chapter 13 Bankruptcy in Arizona, there is simply no reason to pay all the attorney’s fees up-front before your case can be accepted. It upsets me when clients call me for help with their attorney who will not return their phone calls. These clients feel trapped by an attorney who has been paid in full and has done virtually nothing. It is a mistake to pay an...Read More
I cannot recall with any clarity the number of times that a client has inquired as to filing a Chapter 7 or Chapter 13 bankruptcy and has told me a creditor just called and threatened to garnish their wages if they do not make a payment of “X amount of dollars” by “this Friday.” Such threats leave a person desperate and in panic. In a such a state of mind you can easily make mistakes in...Read More