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Personal Bankruptcy Archives

Bankruptcy judge rejects motion for surrender of debtor's home

Generally, when a filer in Arkansas or elsewhere designates in the bankruptcy petition that the residential real estate will be surrendered, it's an indication that no fight will be put up when the mortgage holder brings a foreclosure action. In some cases, in fact, the  foreclosure has already occurred prior to the filing of the bankruptcy and the bank has already taken possession. However, where the filer has defaulted on the loan and does not agree to surrender the property in the bankruptcy papers, what are the rights of the respective parties?

Bankruptcy filing relieves pressure-filled credit score

Filing for a personal bankruptcy to eliminate burdening consumer debt is no longer considered to be a shameful event that must be avoided at all costs. It is generally recognized these days, for example, that a couple in Arkansas or another state can obtain a mortgage to buy real estate within about three to five years after a bankruptcy discharge. In some cases, the time period is significantly less than three years, depending on the particular circumstances.  

Bankruptcy rules give options on reaffirmation of mortgage loan

It's a strange twist of bankruptcy law, but if a debtor does not formally reaffirm his or her home mortgage or other secured loan in bankruptcy, then the debt is no longer owed. This does not mean that the payments don't have to be made; rather, it results in a situation where the debtor continues to pay the monthly mortgage both during the bankruptcy and afterwards, and stays in the home despite not technically owing the money. This scenario, however, is not as simple as it may at first appear, and it may have consequences in other respects, both in Arkansas and in other jurisdictions.

Bankruptcy is a "fresh start" remedy provided by the federal govt

Hard-working people may suffer a medical or financial emergency that is entirely out of their control and not their fault. Illnesses, disability, being laid off at work, accidents and other disasters usually hit without warning and create a substantial and lasting deficit in a family's monthly budget. The federal government provides consumer bankruptcy relief for just those situations, with the purpose of giving an individual or married couple residing in Arkansas or elsewhere a chance to start fresh and get back to normal.

Banks are being pressed to report debts erased in bankruptcy

So-called zombie debt is a problem created by unscrupulous banks and debt collection companies, both in Arkansas and around the country. Despite the fact that a debtor may have paid off a debt, or that is has been discharged in bankruptcy or settled by a compromise payment, the original lender nonetheless packages the debt with hundreds or thousands of other closed accounts and sells the packages to debt collectors. The consumer must be vigilant enough to check his or her credit record regularly to make sure that the entry is challenged and removed.

New rules issued for student loan discharge in bankruptcy

On July 7, the U.S. Department of Education issued a letter of guidance on its future policy toward the discharge of student loans in bankruptcy. Due to the massive build-up of defaulted student loans in Arkansas and nationwide, the Obama administration asked the Department to evaluate the possibility of discharging some student loans in bankruptcy as one solution. As a result, the new policy will recognize some expanded situations in which either part or all of a loan may be discharged in a Chapter 7 bankruptcy.

Can personal bankruptcy help avoid IRS tax liens?

Homeowners in Arkansas who are experiencing difficult financial times may be concerned about their inability to meet their financial obligations. In addition to credit card debts, they may struggle to pay medical debts, mortgages, and unpaid taxes. When consumers feel that their financial situations have become unmanageable, it may be a suitable time to consider personal bankruptcy. Taking charge of the situation in a timely manner may work to prevent federal tax liens placed against their properties.

Bankruptcy gives critical relief to many who face daunting debt

There are many good reasons for an individual or married couple residing in Arkansas to file a personal bankruptcy. According to bankruptcy attorneys, most people who file owe substantial amounts in medical bills that they will never be able to pay. Another major reason is where an individual is laid off and the family budget is put into a crisis mode. Sometimes, people will turn to credit cards to get through what they optimistically hope will be a temporary money crunch.

Bankruptcy can help save a retired person???s retirement assets

Sometimes pride can be a great detriment to one's right to financial peace of mind. Pride can prevent a retired person from filing bankruptcy when the need arises. There are many reasons why a retired person residing in Arkansas or another state will have a legitimate need to file for federal debt relief. When that need occurs, the failure to file bankruptcy can sometimes mean the failure to protect one's retirement assets from creditors.

Banks agree to change reporting of discharged bankruptcy debt

Federal litigation against major banks may give a victory to consumers nationwide, including in Arkansas. Many persons who received a discharge in bankruptcy found in recent years that the banks were continuing to report bills, such as credit card balances, as still due and owing. Federal law requires banks to erase, without negative comment, accounts discharged in bankruptcy from the debtor's credit bureau records.