Some research has shown that medical debt is the primary reason people need to file bankruptcy. A widely cited study published in the American Journal of Public Health in 2019 estimated that about 66.5% of bankruptcies were tied to medical issues, including both medical bills and the loss of income due to illness. Other studies have reported lower percentages, but medical debt consistently ranks among the leading causes of bankruptcy filings in the U.S. The lack of universal health insurance coverage for everyone makes nearly everyone just one serious health problem away from excessive debt ..read more

Technology, including video conferencing, artificial intelligence and document retention tools, has become vitally important to the Nancy L. Thompson Law Office bankruptcy practice. When the covid pandemic started in 2020 we had to find ways to continue serving clients and filing bankruptcy cases. Court and trustee hearings stopped being held in person and in-person client meetings were problematic because of health risks to staff and clients. Remote work with technology tools became the norm rather than the exception. Now, four years later, much of the technology we adopted in 2020 is just a ..read more

People needing to file bankruptcy are required to complete two credit counseling courses as part of the process. This counseling is supposed to provide debtors with information and resources to help them make informed decisions about their financial situation. While there may have been some good intentions for Congress imposing this requirement on debtors in 2005, it was most likely intended by many members of Congress as a way to make the bankruptcy process harder. It has resulted in slightly higher costs for debtors already short of money and no significant impact on the number of people fi ..read more

From 1978 to 1990 all student loans owed for five years or more were dischargeable in bankruptcy. Student loans owed for less than five years were dischargeable if “undue hardship” could be showed. In 1990 the waiting period was increased to seven years. Before 1990 the restrictions on dischargeability of student loans did not apply to Chapter 13 bankruptcy. Starting in 1991 federal student loan borrowers in default became subject to administrative wage garnishment where no judgment from a court was needed before wage garnishment could occur. Also in 1991 the six-year limitation on the collec ..read more

Hiring an attorney to file bankruptcy is crucial because of the complex nature of bankruptcy laws and procedures. While it’s technically possible to file bankruptcy without legal representation, having an experienced attorney can significantly improve the chances of a favorable outcome. Bankruptcy law and procedures are intricate and can vary from state to state and district to district. An attorney experienced in bankruptcy law possesses the knowledge and ability to navigate these complexities. They can help you understand the different types of bankruptcy (Chapter 7, Chapter 13, Chapter 11 ..read more

Personal property exemptions play a crucial role in Chapter 7 bankruptcy by allowing debtors to protect certain assets from being liquidated or taken by a bankruptcy trustee to pay off creditors. Chapter 7 bankruptcy is designed to help individuals discharge most of their unsecured debts (such as credit card debt, personal loans or medical bills). Definition of Exemptions: Personal property exemptions are legal provisions that specify certain types and amounts of property that a debtor is allowed to keep, even when filing for Chapter 7 bankruptcy. If the debtor’s assets fall within the allow ..read more

Romance scams, a heartless manipulation of trust and affection, can inflict profound emotional and financial damage upon their victims. As the web of deceit unravels, victims often find themselves grappling with dire financial consequences, pushing them towards the disheartening prospect of filing for bankruptcy. Many bankruptcy attorneys around the country are reporting more and more instances of victims of these scams needing to file bankruptcy. In the throes of a romance scam, victims are often ensnared by a skilled con artist who preys on their emotions, cultivating an illusion of love an ..read more

Co-signing a loan for someone can be a well-intentioned gesture, often done to help a friend or family member obtain credit when they might not qualify on their own. But this seemingly generous act carries substantial risks that can potentially lead to financial consequences, including the necessity of filing bankruptcy. The primary risk of co-signing a loan is that you become equally responsible for the debt alongside the borrower. This means that if the borrower fails to make timely payments or defaults on the loan altogether, you are legally obligated to repay the entire debt. People often ..read more

A frequent problem for debtors in bankruptcy are the transfers of property and loan payments to family members before filing. In bankruptcy, fraudulent transfer refers to the transfer of assets by debtors with the intention of defrauding creditors. These transfers before someone files bankruptcy can create serious problems and may include transferring assets for less than fair market value to a friend or family member. By trying to get rid of assets, debtors may think they are shielding them from creditors and the trustee. But bankruptcy trustees have the authority to challenge transfers made ..read more

When the Covid-19 pandemic hit with full force in the spring of 2020 I made the decision to stop having in-person meetings for consultations and bankruptcy schedule reviews and signings. To protect my health and the health of my staff and my clients I, like millions of other people around the world, started using technology more widely in my bankruptcy practice. I signed up for Zoom, purchased better webcams, expanded our electronic document procedures, created an electronic payment system and adopted a remote work mindset. Even bankruptcy trustees and courts adopted more technological soluti ..read more