According to recent studies, medical bills are the major cause of individual bankruptcy filings in America. In an article written by Lorie Konish for CNBC.COM summarizing recent studies, two-thirds of people who file for bankruptcy cite medical issues as a key contributor to their financial downfall. I am not sure how accurate that is, but as long as the insurance industry controls medical care in this country, people will have medical bills that they cannot pay. Medical Debt Can Be [...]
Ever wonder what happens after you file bankruptcy? Do you just telephone an attorney and with the push of a button your debts disappear? No, that's not quite how it works (although many who call me seem to think it is). The different bankruptcy chapters have different requirements to get a discharge of your debts. What Is A Bankruptcy Discharge? The ultimate goal of most bankruptcy cases is to obtain a discharge of debts. A discharge is the removal of [...]
Why pay off a credit card or other debts before you file bankruptcy? This would seem to be a counter-intuitive thing to do. After all, you're filing bankruptcy presumably because you need to eliminate debts. But many debtors choose to pay off some of their creditors right before filing bankruptcy. Many think that by paying off a credit card before filing bankruptcy, they will continue to be able to use that card after bankruptcy and that it will not be [...]
Not all debts are dischargeable in bankruptcy. It would be nice for my clients if they were, but there are limits. See my page on debt discharge in bankruptcy for more information. One type of debt that for some reason arises with relative frequency is overpayments made for unemployment. In California these payments are made by the Employment Development Department (EDD). There are different ways this debt can arise, but essentially what happens is the government pays you more than [...]
Payday Loans Are Dischargeable In Bankruptcy Gina is a single mother of three, trying to make ends meet. She barely earns enough to cover her monthly expenses, and the expenses always seem to be due before her next paycheck. So, Gina did what many Americans in this situation do: She got a payday loan. And it pushed her over the financial cliff. Former Daily Show correspondent John Oliver recently did a great exposé on the entire payday loan industry on [...]
How many times can you file a bankruptcy case and how long must you wait in between bankruptcy cases to get a discharge?
Cursory examination of some debts dischargeable in bankruptcy
What is the discharge in bankruptcy and what does it accomplish?
Which debts get discharged in a bankruptcy case?