Nothing causes more disarray then having a house with multiple homeowners and one of those owners files bankruptcy. This situation commonly occurs when multiple siblings inherit a family home, or when investors buy property together. Invariably, one owner is in financial trouble and decides to file bankruptcy. When that owner files bankruptcy, what happens to the property? (more…)
Put simply, overdraft protection is a line of credit. If you overdraw your checking account, that doesn’t mean you have passed a bad check. Passing a bad check can lead to a misdemeanor or felony criminal conviction. Triggering your bank’s overdraft protection is you incurring a debt to your bank. (more…)
IRS tax liens in chapter 7 bankruptcy are double edged swords. Tax liens sometimes hurt the debtor, but tax liens can also help the chapter 7 case. This discussion will address what happens to tax debt in chapter 7 bankruptcy when the IRS has a tax lien, and how tax liens can help the debtor. (more…)
Many credit repair outfits claim to be able to remove bankruptcy from a credit report. Is there—really—any legal basis to remove bankruptcy from a credit report?
What does the Fair Credit Reporting Act say about Bankruptcy? (more…)
- 60% of small businesses fail within 5 years.
- 98% of business owners are finding it difficult, or worse, to pay down small business debt.
- 49% of business owners are finding it extremely difficult to pay down small business debt.
- Most small business are funded, in some manner, by debt. (more…)
Colorado allows wage garnishment. If you owe a debt and can’t pay, eventually you could face a wage garnishment. In Colorado, how a creditor obtains a wage garnishment and how much the creditor can garnish depends on the type of debt. However, before most creditors can get a wage garnishment, the creditor must obtain a civil judgment. Before a creditor can obtain a civil judgment, the creditor must sue you. So, a wage garnishment is rarely a true surprise. (more…)
Unless the medical provider explicitly agreed to accept payments, the provider can send your medical bills to collection even if you are sending voluntary, partial payments. Legally, a medical bill is due in full. The medical provider may offer payment plans. However, if the patient/debtor cannot (or does not) pay the offered monthly payment or pay in full, then the debt is in default. At that point, the medical provider can send the medical bill to collection. (more…)
Student loan forgiveness programs exist. The Consumer Financial Protection Bureau (CPFB) believes such programs are underused because borrowers are not aware. So, the CPFB is planning to promote the Public Service Student Loan Forgiveness Program. (more…)