Archive for the ‘Credit Card Debt’ Category

Already filed for bankruptcy under chapter 7? Need to again?

Monday, June 13th, 2011

you're firedAn honest debtor files for bankruptcy under chapter 7 of the bankruptcy code, crushing credit card and medical debts are discharged, and then disaster strikes.  The job is lost, health insurance benefits disappear, a serious medical issue arises, and suddenly, we find ourselves back where we were before filing for bankruptcy.  Unfortunately, this happens more often than we would like.  Can we file for the same type of bankruptcy again to wipe out the new debt?

The answer depends on when the most recent chapter 7 was filed and if a discharge order was granted by the court.  At least eight years must pass between the filing of the first chapter 7 petition, in which debts were discharged, and the filing of a subsequent chapter 7 petition.  If the last chapter 7 bankruptcy was filed less than eight years ago, you cannot eliminate your new debts by filing another chapter 7.  If non-bankruptcy options for dealing with your debt won’t provide the necessary relief, you are left with two options.  The first option is to wait to file the subsequent chapter 7 bankruptcy until the eight years pass after the first filing.  If waiting is not an option, you may be able to stop creditors by filing a bankruptcy petition under chapter 13 of the bankruptcy code.  Unlike chapter 7, which is relatively quick and easy, chapter 13 is a debt repayment plan that may last for three to five years.

Because of the limitations on discharging debt in multiple bankruptcies, it is important to carefully plan your bankruptcy filing. Be sure to discuss any foreseeable changes in your financial situation with your attorney and to carry adequate insurance before filing the petition. With proper planning, you can reduce the risk of needing to file another bankruptcy petition down the road.

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Posted in Chapter 7, Credit Card Debt, Medical Debt, bankruptcy | No Comments »

Is Your Economy Improving?

Wednesday, April 28th, 2010

Some people are saying that our economy is getting better, but has your financial situation improved?  If you did not receive a big bonus this year you may still be working hard to catch up on your debt.  And, if you’re like many people, it can be hard to avoid going further into debt and impossible to catch up.  When your credit card statement shows that minimum monthly payments will repay your loan in 80 years, you should think about other options.

Chapter 7 bankruptcy can be a great way to eliminate unsecured debt.  Credit card debt, medical debt, and even personal loans that are not secured by your home or personal property are ordinarily unsecured.  Many, if not all, of these types of debt can be discharged in bankruptcy.

Bankruptcy is intended to provide a fresh start for those who are oppressed by unrelenting debt.  Once your debt has been discharged, you can manage your finances and start preparing for your future.  If you do not like the prospect of paying for the next 80 years for items that you already have, you may want to consider the bankruptcy option.

Bankruptcy is what we do, and if you are interested, we would like to talk to you about your options.  If it is a good option for you, we would be delighted to file your bankruptcy petition.  Please call our office for a free initial consultation.

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Posted in Credit Card Debt, Medical Debt, Unsecured Debt | No Comments »

Careful with Those Retirement Savings!

Monday, April 5th, 2010

If you’re thinking about dipping into your retirement accounts to pay off your credit cards, think again. Even if your lenders agree to take only 50 cents on the dollar to settle your debt, understand what you are giving up when you make such an agreement.
Many IRAs and other retirement plans are protected, or what we call “exempt property,” in bankruptcy. This means that while they are listed as assets on your bankruptcy petition, the bankruptcy trustee will not look at it as an asset to distribute to creditors. Under certain circumstances, your retirement will be fully protected in a bankruptcy while your credit card debts are be fully discharged. While it depends upon the particular facts of your case, the potential for substantial debt relief is real.
Before you act, know whether you’ll have to pay any penalties or fees for taking out from your retirement funds to make debt settlement payments. Also, any debt that is “forgiven” by a lender is reported to the IRS, and can result in additional tax liability. However, debt discharged through bankruptcy is excluded from the general rule for reporting canceled debt as income.
Consider all of your options and all of the costs involved before you embark on a debt management plan. Attorney Weber, at the Law Office of George H. Weber, LLC can review your situation during a free consultation and advise you as to your options, and the consequence, of a variety of debt relief options.
If you’re thinking about dipping into your retirement accounts to pay off your credit cards, think again. Even if your lenders agree to take only 50 cents on the dollar to settle your debt, understand what you are giving up when you make such an agreement.

Many IRAs and other retirement plans are protected, or what we call “exempt property,” in bankruptcy. This means that while they are listed as assets on your bankruptcy petition, the bankruptcy trustee will not look at it as an asset to distribute to creditors. Under certain circumstances, your retirement will be fully protected in a bankruptcy while your credit card debts will be fully discharged. While it depends upon the particular facts of your case, the potential for substantial debt relief is real.

Before you act, know whether you’ll have to pay any penalties or fees for taking out from your retirement funds to make debt settlement payments. Also, any debt that is “forgiven” by a lender is reported to the IRS, and can result in additional tax liability. However, debt discharged through bankruptcy is excluded from the general rule for reporting canceled debt as income.

Consider all of your options and all of the costs involved before you embark on a debt management plan. Attorney Weber, at the Law Office of George H. Weber, LLC can review your situation during a free consultation and advise you as to your options, and the consequence, of a variety of debt relief options.

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Posted in Credit Card Debt, Retirement Savings | No Comments »

Credit Card Payments Getting You Down?

Wednesday, March 31st, 2010

Credit cards are a convenient method of paying for that emergency car repair or other needs that just can’t wait.  However, there is a price you pay, above and beyond the mere cost of your purchase.  And, if you’re like many people during these economically troubled times, and find your bank account running short at the end of each month, you may resort  to using your credit cards just to get by.  When you find yourself taking out cash advances from your credit cards in order to make your minimum payments on all your other cards, you know you’re in a crisis.

A Chapter 7 bankruptcy may help you out of this crisis and set you back on the road of financial stability.  While there are some rules you must follow, much credit card debt can be eliminated through bankruptcy.

Imagine using that money you’re now spending on minimum credit card payments and instead using it to pay your mortgage.  Imagine lifting the heavy burden of unmanageable debt and grabbing hold of the reins of your financial situation.  Under the right circumstances, bankruptcy can be a liberating and life-giving process that gives an individual a financial fresh start and hope for a better future.

The attorneys and staff at the Law Office of George H. Weber, LLC want to help deserving people enjoy the benefits that bankruptcy provides.   If credit card debt is getting you down, come to us for your free consultation, to find out what bankruptcy can do for you.

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Posted in Credit Card Debt, Unsecured Debt | No Comments »