Surprisingly, there are still lots of misconceptions about filing bankruptcy including one falsehood that everyone should know – no jail time for filing bankruptcy. The laws of the United States expressly permit the filing of bankruptcy to obtain financial relief. Of course if you try to defraud the bankruptcy court you could find yourself serving… Continue Reading
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Bankruptcy can’t save Executor
A bankruptcy cannot save an Executor. Executors are generally personally liable for estate taxes if they distribute property to beneficiaries before paying an estate tax obligation. And, according to at least one case, the executor may not discharge that personal liability in a later bankruptcy. Carroll v. United States, 2009-2 USTC par. 60,577 (May 6,… Continue Reading
Bankruptcy: Now or Later?
Last Friday the government released positive employment numbers. Even with the government shutdown, the U.S. economy managed to create approximately 220,000 new jobs. This is clearly very good news. Perhaps you are now getting back to work. If you have been looking for work for awhile, you may have recently incurred a significant debt burden. … Continue Reading
The Automatic Stay – How Bankruptcy Stops Your Creditors
When you file bankruptcy, no matter whether it’s a Chapter 7 or a Chapter 13, the law requires your creditors to stop all proceedings and actions against you. This part of the bankruptcy law is called the Automatic Stay. Once you have filed your bankruptcy, but not before, your creditors must stop all phone calls,… Continue Reading
How Does Bankruptcy Affect My Credit Score?
Many people avoid bankruptcy because they worry about their credit score. Yes, bankruptcy may damage your credit score and can stay on a credit report for up to ten years. However, not paying your bills, allowing your debt to go to collections, or suffering a foreclosure may do even more damage. A bankruptcy can stay… Continue Reading