The repeated phone calls and letters from debt collectors can be enough to drive you up a wall. Just because you owe a creditor money does not give them the right to do whatever they want. The law recognizes this and places certain limits on what debt collectors can do when trying to get in touch with you. Here’s more on debt collectors’ rights and restrictions, and on what you can do if they cross the line. Fair Debt Collection Practices Act The Fair Debt Collection Practices Act (FDCPA) is a law that was created to protect you from the aggressive and illegal methods debt collectors sometimes ..read more

Debt Settlement vs Bankruptcy You may have heard commercials from debt settlement companies promising to settle debts for pennies on the dollar or for low monthly payments. You should be skeptical about these claims. Many national debt settlement companies do more harm than good. In most cases, you are better off working with a local attorney. An attorney will offer several solutions and not push you into debt settlement. An attorney has an ethical obligation to serve your best interests. National debt settlement companies do not. They will push you into a debt settlement plan even if other so ..read more

Repeat Bankruptcy Filings: How Often Can you file? An attorney will look-up your previous bankruptcy filing to verify the date. The timelines start with the date of filing not the date of discharge. Waiting Periods Apply to Discharge First, some clarification is needed. You can file successive bankruptcy cases, however, you will not receive a discharge if you received a discharge in a previous case that was filed within the time-frames below. Further, the bankruptcy protections may not apply for repeat filers. An attorney can explain. It rarely makes sense to file a bankruptcy knowing you won ..read more

Some cases result in the surrender or liquidation of non-exempt assets. There are known as asset cases. In an asset case, the trustee sends notice to creditors advising them that they must file a claim by a certain deadline. In the meantime, the funds are held in a separate account known as the bankruptcy estate. After the claims filing date has passed, the trustee will review the claims filed for any discrepancies and file objections to claims that don’t meet legal requirements (proof of debt). The trustee then pays all the timely filed claims a pro rata share of funds from the estate which m ..read more

Rebuilding Credit After Bankruptcy Sometimes people make mistakes when it comes to business decisions, resulting in debts that are simply impossible to repay. This forces them to make the uncomfortable decision of filing for bankruptcy. Doing so is never an easy decision, but it does offer some relief. It allows them to start from a clean state from a financial point of view where they do not owe any more debts. However, this also means they’ll have to face higher rates when taking a loan or using a credit card. This is because the bankruptcy process has damaged their credit score. This impact ..read more

What happens to your home when you file bankruptcy depends on how much equity you have in the home and which chapter of bankruptcy you file. In a chapter 7 bankruptcy, your home is at risk of being liquidated if the equity in the home exceeds the applicable state’s exemption amount. The homestead exemption in Colorado is $250,000 or $350,000 for the elderly and disabled. The trustee will take into account the costs of sale, therefore, if your home is slightly over the exemption limit you might be safe. However, if you are close to or over the exemption limit, you should consider filing a chapt ..read more

Bankruptcy Myths Collection agencies and creditors will often call debtors and allege that unsecured debts that have been reduced to judgments and credit card bills are no longer dischargeable in bankruptcy. These and other similar allegations made by debt collectors simply aren’t true. If you have debts that you need to discharge in bankruptcy, you should consult an attorney to learn more about your rights. Some people are hesitant to file for bankruptcy because they feel that doing so will forever ruin their credit. That is another myth credit companies would like you to believe. The fact is ..read more

What happens to mortgages in bankruptcy? It  depends on which chapter of bankruptcy you file under and what your intentions are. Chapter 7 If you file a chapter 7 and you want to keep the home, you will continue making payments as you normally would. However, you should be certain that your equity does not exceed the applicable exemption amount otherwise you may lose the home to liquidation.  Exemptions vary by state. An attorney can assist you with applying the appropriate exemptions in your case. Unless you file a reaffirmation agreement, the mortgage note will be discharged.   ..read more

If you are considering filing for bankruptcy, then you may be aware that there are a few different types from which to choose. What you might not know is that, depending on your financial situation, you might not qualify for the type of bankruptcy that you are considering. The law provides restrictions on which form of bankruptcy can be filed depending on a few key factors. Additionally, even if you qualify, you should be aware of how the various forms of bankruptcy can affect your credit rating and finances for the future. Let’s take a look at two of the most common forms of bankruptcy for in ..read more

Consumer debt is at an all-time high. According to Experian, U.S. consumer debt grew by 6%, from $800 billion to $14.88 trillion in 2020, the highest annual growth recorded in over a decade. Experiencing being in debt is nothing to be ashamed of and has happened to many of us one way or the other. Debt does not equal financial struggle and only poses a problem when it gets out of control. For this reason, it’s crucial for you to know how to manage your debts the correct way. The right type and amount of debt can help you achieve various financial goals, like building your credit score, buying ..read more