When the federal bankruptcy laws were changed back in 2005, a code section was added that requires all bankruptcy debtors to attend two credit management classes.  The first class is called credit counseling and its purpose is to expose you to non-bankruptcy options for dealing with your debt.

The second counseling requirement is called the financial management course requirement.  This course must be taken after you file but before discharge.  Its goal is to help you avoid financial problems in the future so that you will not end up having to file bankruptcy again. [click to continue…]


Are You Too Broke to File Bankruptcy?

by Editor on May 28, 2013

Bankruptcy is considered a way out for people.  It is a solution to start their financial lives over from scratch.  What many people don’t realize is that filing for bankruptcy and getting out of it costs money.  You need money to file, to pay the lawyer and to pay the court.  Because of this not everyone can hit the reset button.  What happens when you’re too broke to file bankruptcy?

To know if bankruptcy is right for your situation speak to a bankruptcy attorney.  Yes it cost money but many of them, including this one, offer a free consultation.  Use that to your advantage.  Sit down with a law professional to explore your legal options.  You’ll have an idea of the bankruptcy process, types of bankruptcy and alternative solutions to your financial problems.  A bankruptcy attorney will also work with your budget.  There are payment plans that allow you to pay a certain amount of money at a time until it’s paid off completely.

The lawyer will talk to you about kinds of bankruptcy.  Be sure to write those options down.  You may qualify for chapter 13, an option where you can pay all creditors over a three to five year plan.  If you are qualified for this option legal fees can be added to this plan, so you won’t have to pay it all at once.  If you qualify for chapter 7 you may be able to save some money by requesting a waiver.  Filing for chapter 7 bankruptcy comes with a $306 court fee.  If your income is 150% less than the poverty line and can prove it you are exempt from paying the court fee.  [click to continue…]


Should Private Student Loans be Dischargeable in Bankruptcy?

September 12, 2012

We ran across an interesting article on the Huffington Post entitled “Private Student Loan Bankruptcy Rule Traps Graduates With Debt Amid Calls For Reform.”   The article tells the story of an unfortunate young woman who cannot work because of a chronic medical condition, but who is saddled with a student loan debt of $33,000 from […]

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New Florida Law Adds Bankruptcy Protection to Inherited IRAs

June 7, 2011

Last May, we wrote about an 8th Circuit decision which held that inherited IRAs were protected assets in bankruptcy.   Florida is part of the 11th Circuit, not the 8th Circuit, which means that bankruptcy judges and federal court judges are not bound to follow 8th Circuit Court of Appeals precedent, although circuit court decisions are […]

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Florida Foreclosures = Fraud Factories?

October 1, 2010

Judicial foreclosure laws in Florida require lenders to file a lawsuit against a homeowner.  These lawsuits should include documentation showing that the plaintiff has standing to sue and that the homeowner is in fact delinquent. Some mortgage servicing companies, however, are not following the requirements of the law.  In some cases, documents are being forged […]

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