As we discussed in part one of this series for offering budgeting tips to young adults, it’s really helpful if good financial habits are practiced and discussed at home during the formative years, and on into the future as different financial issues and phases erupt.
My parents didn’t spend a great deal of time teaching my brother, sister, and I about money. As a matter of fact, I don’t ever recall a conversation about saving, investing for retirement, etc. Family finances are still a private matter.
The other day I was talking with a person who had $12,000 in credit card debt and wanted to file for bankruptcy. This amount of credit card debt seemed way too low for this person to file for bankruptcy protection.
I asked: “Have you thought about settling your debts on your own?”
Her response: “No, I could never do that!”
I was a little surprised by her response, but on inquiring further, I discovered her trepidation was simply in trying something she’d never done before—or even considered.
Questions about exemptions and overages are the most frequently discussed issues in a Chapter 7 bankruptcy consultation. One of the major concerns for debtors in Chapter 7 bankruptcy cases is what happens to their personal property after the bankruptcy is filed, and many potential clients are, in fact, hesitant to file for bankruptcy simply because they don’t want to relinquish their belongings to the Chapter 7 trustee. Although there are some circumstances when you might have to surrender something to the Chapter 7 trustee, it’s a big bankruptcy myth that once you file for bankruptcy, you lose all your stuff. Let’s talk about how it works.
It’s tax season again, and with the economy still struggling, many Americans are opting to do their own taxes rather than paying professionals to do it. That’s a lot easier said than done though. Although we’re not tax attorneys here at The Dellutri Law Group, our attorneys must deal with tax-related issues on a regular basis, because such issues are irretrievably intertwined with bankruptcy issues.
Bankruptcy Law inspires me. Here is a little story about why it does.
There are many lawyers out there searching for their dream jobs. The other day I heard about another tall building lawyer (we call them TBLs) leaving one very prominent firm to head to another very prominent firm. I asked myself why he would leave. That is a good question, but one I cannot answer since I've never worked for a tall building law firm, and I really don't know what the culture is like. Now, don't get me wrong, I have been in these places and to me they have always felt cold, but I was only a visitor.
Who knows, after I left maybe everyone began smiling and high-fiving each other. It could have happened that way, and my vision of that happening actually made me smile, but I doubt anyone high-fived anyone after I left. I'm willing to bet that the support staff kept tapping away at their keyboards, and they continue to do so today.
I need to be in a comfortable setting where I can smile, laugh, and enjoy myself because I know I am doing good work that really helps people. I like to joke around and have fun, and I believe that you can do so at work, in moderation.
One of the biggest concerns many Americans have with the idea of filing for bankruptcy is the impact it has on credit. Indeed, a bankruptcy filing does not go unnoticed by the credit reporting agencies, which may report a bankruptcy for up to 10 years under federal law. Fortunately, there are a number of steps you can take to rebuild your credit following a bankruptcy filing.
Lenny Dykstra, a former professional baseball player, was sentenced to six and a half months when he pled guilty to bankruptcy fraud.
Have you filed a Chapter 13 bankruptcy? If so, then you’re undoubtedly familiar with the nature of the beast. You’re committed to the Chapter 13 plan, which dictates the amount of money you must pay to the trustee for distribution to your creditors for a fixed period of time, usually between three and five years. If you’ve seen an attorney who recommended that you file for a Chapter 13 bankruptcy instead of a Chapter 7, there’s unquestionably a good reason for doing so. Either you are ineligible for relief under Chapter 7, or there is a strategic reason that makes filing a Chapter 13 much more beneficial than filing a Chapter 7 in your particular case. Even with that knowledge, however, most folks aren’t too enthusiastic about having to pay the trustee every month for up to five years. One of the most common questions I receive from Chapter 13 clients who just want to put the bankruptcy behind them as quickly as possible is: “Can I pay off my plan early?” Well, in most cases you can, but that doesn’t mean it’s necessarily a good idea. Here’s why.
If your mortgage servicer is calling you after you surrendered property in bankruptcy, you may have to sue them. Many of our bankruptcy clients come to us burdened with a mortgage payment that is beyond their means, paying a mortgage that’s now well over the actual value of the property. Rather than continue to be obligated on that debt, some people elect to give their homes back to the bank in their bankruptcy. When this happens, the bankruptcy debtors are surrendering their interest in the property, and it’s up to the bank to legally foreclose on the property. The filing of a foreclosure lawsuit after a bankruptcy debtor receives a discharge of debts is not a violation of the bankruptcy code – as long as the bank isn’t trying to get any money from the debtors.