Denver Debt Collectors Resort to Facebook, Twitter

By now, everyone understands that Facebook and other social media sites are subject to public consumption, and as such, we need to be mindful of the information we submit.

However, one aspect that we often don’t think of it affecting is our issues with Denver debt collection.

In fact, as our Denver debt relief attorneys understand it, social media is in fact becoming an increasingly-used tool for debt collection agencies.

There have been reports of certain collectors setting up fake profiles to friend those who owe, and others who will message or tweet your friends and family to ask where you might be.

Is it intrusive? Absolutely. Illegal? Probably, at least in some states.

The Fair Debt Collection Practices Act was set up in order to protect consumers from debt collectors who abuse the system.

And Colorado statute C.R.S. 18-5-113 does prohibit someone from impersonating another for his or her own benefit.

However, when the federal law was passed back in the late 70s, it was way before the age of Twitter and Facebook. There have even been lawsuits filed when debt collection agencies have taken this take.

But that doesn’t mean you shouldn’t be cautious.

If you want to circumvent these types of problems, there are some steps you can take.

One is to respond to collection letters within a month. If you owe the debt, the agencies can still sue you to pay it, but if you write them a letter notifying them not to contact you through that or any other method, they must stop e-mailing or calling you.

Secondly, use your privacy settings. You don’t want to give debt collectors access to your pictures or any other information about you that would be available on your Facebook page. It’s possible that information could be used against you.

Thirdly, be very careful about what information you post. Sometimes, we have a false sense of security on our social media sites because we may assume the only people who are interested are those close to us. But that’s not always the case. Debt collectors can find your employer’s name, address and other contact information, your cell phone number and your date of birth.

Be selective about whose friend requests you accept. Don’t approve requests from strangers.

And finally, don’t use the “like” button for your bank or credit card company. That can give them a portal from which to gain information about you that you may rather they not have.

Common Denver Bankruptcy Mistakes

Filing for a Denver bankruptcy can seem like an arduous process. There are a seemingly inordinate amount of forms, calculations and reports to be completed.

A Denver bankruptcy attorney can help you get organized and help ensure that you’ll remain on solid legal ground throughout the process.

However, there are some things to keep in mind going into it all – common mistakes or misconceptions that people have when it comes to filing for bankruptcy.

The first thing you want to avoid is any kind of deception. Most people who are seeking a bankruptcy do qualify for it. For people who don’t, there are other options. But if you don’t qualify and file anyway, your case could be thrown out and you might be prohibited from filing on those debts ever again.

Secondly, you want to make sure you’re reporting all your income. Some people make the mistake of thinking the only income that counts is the primary income. This isn’t true. Even your teen’s income counts if you have claimed him or her as a dependent.

Thirdly, you don’t want to exclude any assets – namely, your vehicles. People sometimes fear losing their vehicle, so they make the mistake of not listing it or worse yet of transferring it in their child’s name shortly before they file. However, they’re likely to end up losing it anyway.

Fourthly, don’t leave out any creditors. Credit card companies have almost all centralized their operations, so they’re going to quickly find out if you’ve filed for bankruptcy. Generally, you’re going to be able to get a new credit card after your bankruptcy and it’s not going to help you if you try to hide one of your cards.

Fifthly, don’t try to scam the system by transferring assets out of your name just before you file for bankruptcy. It’s illegal. If there is certain property you want to protect, you need to have a discussion with an experienced attorney to figure out what your options may be.

Finally, don’t pay your family back before you file. Let’s say you borrow $5,000 from your cousin. You may have every intention to pay her back, but if you do it in the year prior to filing for bankruptcy, it could be considered a mark against you because, technically, she’s still a creditor. Paying back family before you pay other creditors could spell trouble. Again, consulting with a skilled Denver bankruptcy attorney can help you understand all the implications.

Denver Bankruptcy a Financial, Not Ethical, Choice

It’s unfortunate that some people still believe there is a stigma attached to Denver bankruptcy.

Our Denver bankruptcy attorneys have been dismayed when we meet clients who have tried to battle the massive debt on their own. They have worked their whole lives to build up a reputation as a solid, hard-working individual who pays what they owe. There’s nothing wrong with those ethics in theory, but the problem is when people drain their retirement funds and college savings and rack up credit card debt trying to make that happen.

But taking these measures to save an underwater home or get out from underneath mounting credit card debt is not the way to go, and will only lead you further into a financial tailspin.

The truth of the matter is, those mortgage servicers and credit card companies aren’t going to look after you in your retirement. Even just having the thought that you may need to dip into these savings to pay off your bills is reason enough to contact a Denver bankruptcy attorney to sort through your other options.

Sometimes, people make the mistake of trying to pay off one creditor completely, without trying to settle all or at least most of them. Using limited funds to pay off one creditor isn’t going to solve your problem.

What drives people to make these unwise financial moves? Primarily, guilt. People feel bad that they can’t pay what they owe. They feel ashamed. They feel like a deadbeat. So they try to assuage that guilt by throwing whatever money they have at the problem. But that’s not going to make these issues go away.

You have to start looking at the choice to file for bankruptcy as a business decision, rather than a moral or ethical decision.

One of the first signs that you may be in over your head is if you’re stressed about it? Are you losing sleep over it? Are you thinking about dipping into your retirement funds? Are you using one credit card to pay off another?

If so, it’s time to reach out for help. Be wary also of debt settlement companies that offer to fix all your debt related problems. Contact a trusted Denver bankruptcy attorney who can assist you in exploring your options.

A Closer Look: Colorado Foreclosures In Decline

In this second part of a two-part series on Americans and debt, Colorado debt-relief attorneys examine foreclosure trends across the state. In an earlier post to our Denver Bankruptcy Attorney Blog, we noted that Colorado ran second only to New Hampshire for over-the-month job creation in January, and Colorado bankruptcy filings have hit their lowest number since 2009.

In tandem with Colorado bankruptcy and unemployment numbers, foreclosure rates across the state are also dropping. The Colorado Department of Local Affairs reports that Colorado foreclosure filings are now at the second-lowest level reported since 2006, hopefully indicating some “true stability” in Colorado housing markets.

Data tracking quarter-to-quarter foreclosure rate comparisons for 2010 and 2011 show evidence of a decline, as follows:
~ Second quarter (2011) number of foreclosure filings: 7,233
~ Second quarter (2011) number of sales at auction (completed foreclosures): 5,333
~ Second quarter (2010) number of foreclosure filings: 10,233
~ Second quarter (2010) number of sales at auction (completed foreclosures): 5,887
Year-over-year second quarter comparisons indicate that in 2011:
~ foreclosure filings were down 29.4 percent with 3,000 fewer filings, and sales at auction (completed foreclosures) were down 9.4 percent with 554 fewer sales at auction.

According to the report, the drop-off in the total number of foreclosures has been attributed, to some degree, to the suspension or of many foreclosures in response to the so-called “robo-signing” controversy. While the initial slow-down spanned just October and November 2010, the legacy of that episode continues to affect the speed of the foreclosure process statewide. It is further believed that job growth and a continue surge in the national economic outlook also play a role in the drop in foreclosure filings.

With that said, the Denver Post is now reporting that thousands of Colorado homes are believed to have been lost to foreclosure in association with the controversy. And a second Denver Post report shows conflicting foreclosure rates from the Colorado Division of Housing and RealtyTrac indicating that for Colorado homeowners, the foreclosure nightmare is far from over.

If you are dealing with a Colorado bankruptcy or debt-related issues, contact the Law Office of Jon B. Clarke today to schedule a free consultation.

A Closer Look: Colorado Bankruptcy, Unemployment Track Decline

In this two-part series on Americans and debt, Denver debt-relief attorneys examine employment, foreclosure and bankruptcy trends across Colorado and the nation. While we are happy to report these three key indicators are all showing signs of recovery statewide, we also know that for many struggling Colorado families, the turnaround simply isn’t coming fast enough.

In their latest report, the Bureau of Labor Statistics indicates that 45 states, along with Washington D.C., each recorded unemployment rate decreases for the month of January, and that 48 states (District of Columbia included) registered unemployment rate decreases from a year earlier. In both instances, only New York saw an increase, while a handful of states saw no changes. Overall, the national jobless rate currently rests at 8.3 percent, down .8  percent since January 2011.

Across Colorado, the unemployment rate dropped one percent (from 8.8 percent in January 2011 to 7.8 percent in January 2012) during the last year. Between December 2011 and January 2012, Colorado ran second only to New Hampshire for over-the-month job creation with a gain of 19,500 jobs. The year-to-year comparison also showed modest growth of 43,400 jobs between January 2011 and January 2012.

A review of Colorado bankruptcy statistics published by the Administrative Office of the U. S. Courts indicate an ongoing decrease in the number of bankruptcy filings since reaching a peak in 2010. Between January and February of this year, there were 3,690 bankruptcy filings in Colorado. During the same time frame in 2011, records indicate there were 3,912 filings. Comparing the two captures: there have been 222 fewer filings in 2012.

The number of January-through-February Colorado bankruptcy filings since 2008 are as follows:
~ January and February 2012 bankruptcy filings: 3,690
~ January and February 2011 bankruptcy filings: 3,912
~ January and February 2010 bankruptcy filings: 4,050
~ January and February 2009 bankruptcy filings: 3,129
~ January and February 2008 bankruptcy filings: 2,493

Denver bankruptcy lawyers recognize that statistics indicating a bump in job growth and a decline in bankruptcy filings does not spell relief for the many families facing mounting credit card and other personal debt while fighting to stay out of a Colorado bankruptcy courtroom. At the Law Office of Jon B. Clarke, we bring decades of debt-relief experience and know how to help clients obtain a fresh start. To schedule a free consultation, call us at (303) 779-0600 today.

Colorado Bankruptcy Watch: State Senate Muzzles Employers Stalking Credit Scores

Colorado debt-relief attorneys applaud the efforts of Sen. Morgan Carroll (D-Aurora) along with the rest of the Colorado State Senate  for passing SB 12-003, otherwise known as the Employment Opportunity Act of 2012.

As part of a larger “Colorado Works” legislative effort that aims to increase employment across the state, the goal of  SB 12-003 is simple: to prohibit employers from using an applicant’s credit report information as a screen for employability — unless the position in question is directly related to money or asset management.

In addition, if an employer opts to not to hire an applicant based their credit report score, this reasoning must be disclosed to the candidate. Also, prospective employees must be given the opportunity to explain any negative information on their report. Failing to comply with these directives can lead to civil penalties. The bill now heads to the House of Representatives for consideration.

According to USAToday, Colorado now joins seven other states that have enacted similar laws to prevent credit report discrimination against job seekers.

Denver bankruptcy lawyers have seen time and again how unemployment sparked by our nation’s economic downturn has devastated families and destroyed, literally, millions of personal credit scores. As reported in the Coloradoan, credit scores drop for numerous reasons, including unemployment. But even for those who have managed to cling to their jobs, factors ranging from medical emergencies to identity theft to divorce and single parenthood — each of these factors can and do contribute to personal financial crisis and, ultimately, the tanking of personal credit rating.

Forbes offers the following tips for job seekers wanting to improve their credit standing:
~ check your credit score (federal law entitles you to an annual free credit report),
~ pay your bills on time,
~ reduce your debt, and
~ manage your credit card(s) responsibly (note: NOT having a credit card can be as bad as abusing one).

Colorado Bankruptcy Attorney Jon B. Clarke have represented clients throughout Colorado and the Denver Metro area for more than 30 years. If you are dealing with bankruptcy or debt-related issues in Colorado, call (303) 779-0600 to schedule a free consultation today.

Soaring Gas Prices Push Families to Seek Colorado Debt Relief

Despite reaching a four-year low in unemployment claim filings, Bloomberg.com reports that thanks to a 17 percent jump in gasoline prices since January, consumer confidence is again taking a hit. Denver bankruptcy attorneys, like the rest of the nation, have been watching with dismay as gas prices continue to climb up, and up, and up.

Colorado debt-relief lawyers know that for those folks trying to curb spending to help make ends meet, transportation costs often give up the least wiggle room. Kids have to get to school and parents have to get to work, to the grocery, to the bank and so forth. For families struggling to stave off a Denver bankruptcy filing, the fact that gas prices across the nation have clicked upward for eight days straight does little to improve personal finances.

CNN Money reports that Colorado drivers are currently paying about $3.56 a gallon for gas. Thankfully, those prices are on the low end of the national average. As of this post, Wyoming drivers are enjoying the lowest gas prices at $3.40 a gallon as Hawaii drivers are paying out a whopping $4.48.

With that said, it isn’t just the spike in prices, but the amount of income spent to keep tanks full that paints a clearer  image of how gas prices are impacting families. Across Colorado, residents are outlaying 5.4 percent of their income in fuel costs. In contrast, gas prices are gobbling up 11.8 percent of income for Mississippi residents, 10.6 percent for Montana drivers, and 10.0 and 9.9 percent in North and South Dakota, respectively.

Matching soaring gas prices with wobbly consumer confidence and a still-high unemployment rate means that for far too many Colorado families, preventing a personal financial crisis is just not possible. In many cases the economy simply isn’t improving fast enough as bills continue to pile up.

The debt-relief attorneys at the Law Office of Jon B. Clarke bring more than 30 years experience helping clients obtain a fresh start with mortgages, car loans, personal guaranty, credit card debt or other debt relief. To schedule a free consultation today, call (303) 779-0600.

How to Protect Your Assets

It can be hard to understand why a bankruptcy attorney is worth the cost. After all, there are other services out there, such as ‘petition preparers’ and ‘debt relief agencies’. Sure they can help you file for bankruptcy for less money, right?

Yes, they certainly can.

But a bankruptcy attorney does more than just file your paperwork. Part of what makes a good bankruptcy attorney indispensible is all the work they do before they file your paperwork.

The law is almost intentionally confusing, and bankruptcy law more so. Every filing is unique because everyone’s financial situation is unique. Because there are different types of bankruptcy filing, a bankruptcy attorney will review all of your financial information, and discover which type of filing is best for you.

But there’s more. Beyond simply deciding which type of filing to use, a bankruptcy attorney will prepare you for it. What this means is that they know the best, legal ways to let you get the most out of your bankruptcy filing. This can be a difference of thousands of dollars, likely far more than you would actually pay your bankruptcy attorney.

So protecting your assets isn’t just about choosing the right bankruptcy Chapter to file, but about adapting your financial situation to get the absolute most benefit from that filing. And all of that happens before the filing actually begins.

If you want to know how to protect your assets, call a bankruptcy attorney before it’s too late!

Bankruptcy with Commercial Property

There are many different circumstances that can make filing bankruptcy more or less difficult. Filing for bankruptcy during or shortly after a divorce is always difficult, as is filing when you have unpaid tax debt.

However, another complication is when you own commercial property.

Commercial property can make your bankruptcy filing significantly more complicated due to all kinds of factors, such as extra loans that may be in default, problems with equity, income-producing properties, and many more.

Owning commercial property will also affect which type of bankruptcy you should file, Chapter 7, Chapter 11, or Chapter 13.

It’s extremely important that you speak to a professional bankruptcy attorney before you do anything else in preparation for filing for bankruptcy, because a good bankruptcy attorney will help you discover all of your options in the coming procedure.

It’s not just possible but likely that your bankruptcy attorney will advise several things for you to do before the bankruptcy filing, potentially even a short sale of your property.

Bankruptcy attorneys know the most important thing for your situation, which is how to get the most benefit out of your bankruptcy.

Since you can’t file for bankruptcy very often and the consequences can be long-lasting, you want to make absolutely sure that when you do file, you get the absolutely maximum benefits from it, and the further in advance you obtain the services of a good bankruptcy attorney, the more they’ll be able to do on your behalf.

Don’t wait any longer… Call and make an appointment today!

When to File for Bankruptcy

One of the hardest parts of filing for bankruptcy is deciding when to do it. You can think to yourself, “Bankruptcy is something you do when you don’t have any money,” but that isn’t really the case at all.

In our debt-driven economy, it’s hard to know when you don’t have enough money. That’s because banks lend money to encourage debt and spending, and it ends up hurting more people than it helps.

As a result, many people live entirely on credit. That is, when their paycheck comes in, it immediately goes to paying off credit cards, and then they live on the remaining money on those cards. Technically, at that point, you don’t have any money and you’re just living on borrowed money. But at the same time, you’re still able to afford the things you need to survive.

So when do you file for bankruptcy?

The answer is as soon as possible. The vast majority of people wait until far too late before filing for bankruptcy, and as a result are only able to reap limited benefits.

If you’re living entirely on borrowed money, it’s time to talk to a bankruptcy attorney and explore your options for debt resolution.

A good bankruptcy attorney will explore other options for you in addition to just bankruptcy, but the fact of the matter is that so many people wait too long to consider the bankruptcy process that by the time you’re thinking about calling a bankruptcy attorney, it’s probably time for you to file for bankruptcy!

The Consequences of Bankruptcy

In most cases, a well-filed bankruptcy can be the solution to all of your problems. It can clear most, or even all, of your debts so that you can put your money where it counts and turn your entire life around.

Bankruptcy can literally save your life.

But it’s not all fun and games, and there are people out there who will try to convince you that there are no downsides to filing for bankruptcy, and that just isn’t the case.

It’s always important to evaluate the consequences of something before you do it, which is why we like to let people know what to expect after their bankruptcy is over.

First of all, bankruptcy will affect your credit negatively, and it can stay on your credit report for up to ten years, depending on what chapter you file. Most of the other consequences are a result of this first one.

Secondly, it will almost certainly be difficult to get a loan for a year or two after your bankruptcy is over. When you do get a loan, it will likely be at a higher interest rate. You’ll need to build up a good credit history in order to qualify for better rates.

Thirdly, you may have difficulty getting a mortgage on a home for several years, so plan ahead!

These may be common sense to some people, but not everyone thinks about it. A well-filed bankruptcy really requires a lot of advance planning, or else it can cause problems for you down the road. That’s why it’s so important to use a bankruptcy attorney!

Bankruptcy vs. Insolvency

Many people don’t understand exactly what bankruptcy is, or what it means, due to so many prevalent misconceptions. It shouldn’t really be a big surprise, either, because most people who do file for bankruptcy tend to keep it private because the myth persists that filing for bankruptcy is somehow a bad thing.

Being ‘bankrupt’ has generally meant the same thing as ‘broke’. Which, of course, means that you have no money.

But having no money is entirely relative these days, since so many of us live on borrowed money: credit. How many times have you gotten a paycheck and immediately dumped that paycheck into paying off a credit card, and then lived off of that credit until the next paycheck?

If you’re considering bankruptcy, probably quite a few times.

So when do you decide that you’re broke? Technically you have no money if your money is in the form of credit, but at that point, you can still provide for yourself and live quite well.

Being insolvent is different. Insolvency is when you have more money going out than you have coming in. It means that no matter how much money you have, you’re slowly going to use it all up and are thus unable to ever pay off the debt that you accumulate.

It’s important to realize the distinction, because it’s when you’re insolvent that you need to begin thinking about filing for bankruptcy. You can happily live on credit and be technically broke, but as long as you still have an income that equals or exceeds your expenses, you’ll be fine. However, when you become insolvent, you need to seek help!

Pay Off Your Student Loans with Bankruptcy

Any time there’s a weak economy, there’s a boom in enrollment in higher education. That’s not really surprising, because if you can’t find a job, it makes perfect sense to go back to school so that when the economy picks up, you’re even more qualified for jobs.

But when the economy is slow to recover, that rush to go back to school creates a surplus of people with higher educations. So when things finally do recover, there are far too many people who are overqualified for the available jobs. Then in addition to not being able to find a job, those people are saddled with massive student loan debts.

Student loans are unlike any other kinds of loans because they’re underwritten by the United States government. On one hand, it’s great that the government provides money for people to go to school, but on the other hand, that loan can’t be cleared during a bankruptcy filing. That leaves many people so underwater with debt that they simply can’t ever recover.

However, there is a silver lining to this cloud. While the student loans themselves can’t be dismissed, any other debt that has accumulated can be. This means that any other money that was being spent to pay off other bills can then be put toward paying off the student loan.

It’s not ideal, but it can make all the difference for someone who is struggling to get by. Consider having a consultation with a bankruptcy attorney to explore your options!

The Effects of Bankruptcy on your Retirement

Many people start to get nervous around the time they’re supposed to retire, because they don’t want anything to jeopardize their retirement that they’ve worked hard for, for their entire lives. That’s why people who are about to retire can be extra concerned about filing for bankruptcy.

And who can blame them?

However, the reality of the situation is often different than they’ve built up in their minds, and of course it is. The world has changed a lot just in the last ten years, much less over the last thirty.

Now, bankruptcy is an important weapon in the consumer’s arsenal to help fight for their ability to control their own lives.

First of all, bankruptcy has several built-in protections for retirement. Most retirement funds and Social Security payments are automatically safe, so there’s no worry about not being able to retire.

Second, it’s only rarely that someone has to give up assets like their home or their car. Many exemptions are built into bankruptcy law to allow most people to keep their primary assets.

Most importantly, bankruptcy is no longer a sign of shame or defeat. If you look in the news, it’s easy to find an article about some extremely successful businessperson or company declaring bankruptcy, and history is full of people who have declared bankruptcy and gone on to build another fortune for themselves.

Bankruptcy is just a tool, and what matters is how you use it. So consult with a bankruptcy attorney and protect your retirement today!

The Consequences of Filing for Bankruptcy

Many firms out there who want to convince you to hire them for their services will downplay the consequences of filing for bankruptcy, or assure you that there are no significant consequences.

Unfortunately, that isn’t entirely true, and while the consequences are almost always better than the alternative had you not filed, they’re still worth considering.

For example, you may be told that filing for bankruptcy won’t affect your ability to get a loan, which is false. Bankruptcy will affect your ability to get a loan for several months to several years, depending on how you treat your credit after your filing. Still, even with that, most people have such a low credit rating by the time that they decide to file for bankruptcy that that effect will be almost negligible.

It will also be difficult to secure a mortgage during that time, though again, it likely would have been difficult, anyway.

The real trick to making the most use of filing for bankruptcy is to do it at just the right time so that any consequences that you may have suffered from filing are almost unnoticeable. That way you gain all the benefits with as few consequences as possible.

The only real way to know when bankruptcy is right for you is by consulting with a bankruptcy attorney. A reliable bankruptcy attorney will be straightforward with you about the downsides to filing, and if the timing isn’t right for you, they’ll tell you so!

Stopping Repossessions

We live in a society that focuses on material wealth, and as a result, we become very attached to the things that we own. But some of those things we become attached to because we need them in order to have a decent life, like a car and a home.

When someone threatens to take those things away from us, it’s upsetting because it can really affect our lives. And not just our lives, either, but our emotional wellbeing.

During turbulent times, people need stability in their lives in order to carry on, and having the threat of repossession hanging over your head takes away that safety even in the comfort of your own home.

The anxiety and stress caused by that lack of safety can affect every aspect of your life, and most importantly it can take away all of the joy you have.

If you live in constant fear of collections or repossessions, you should consider filing for bankruptcy. When you file for bankruptcy, the court issues an automatic stay on all types of collections and collection attempts.

That means that during the bankruptcy process, you no longer need to worry about your property. Even after the bankruptcy is over, chances are very good that your debts will either be cleared, or be taken down to a manageable level.

Using a good bankruptcy lawyer is the best way to do that, because the better your advocate during the bankruptcy process, the more rewards you’ll be able to reap!

Bankruptcy Misconceptions

Many misconceptions have been propagated about bankruptcy in both film and television, as well as by word of mouth.

The first mistake is that people look at bankruptcy as some sort of failure, or something to be ashamed of. As if filing for bankruptcy was a public admission of defeat. The fact of the matter is that you can fail all on your own without filing for bankruptcy, and actually taking the step of filing isn’t a sign of failure, but a sign that you’re taking control of your life back and you’re making the first step toward financial recovery.

But there are plenty of other misconceptions, such as that you’ll lose everything. In fact, bankruptcy has built-in protections, and it exists to help you, the consumer. In all likelihood, you’ll be able to keep both your home and your vehicle.

Some people think that bankruptcy will make them lose their retirement funds. In fact, bankruptcy can protect your retirement funds so that you can actually enjoy your retirement on schedule.

Some people think that bankruptcy will ruin your credit forever, and that they won’t be able to recover. Honestly, by the time most people consider filing for bankruptcy their credit is already ruined. Bankruptcy is the best way to help recover from a bad credit score.

While it may be hard to get a loan for a while after your bankruptcy, creditors like to see people who have had a successful bankruptcy and have turned their finances around. After some time elapses so that you can prove yourself, creditors will be very happy to give you loans because you’ll be a much safer investment!

So call a bankruptcy attorney today, and get started!

Do I Have to Lose my Home?

Filing for bankruptcy often comes with a lot of unwanted baggage, such as stress, doubt, worry, and fear. Will I lose everything? Can I recover?

One of the most common fears is that people will lose their home, and rightly so. Homes are more than just a place to live, they provide safety and security, which are both necessary for good mental and physical health.

Thankfully, bankruptcy law allows for a sixty thousand dollar home exemption. Doesn’t sound like much, does it? Most homes can be anywhere from eighty thousand to three hundred thousand dollars, which makes sixty thousand seem pretty inadequate.

The exemption isn’t for home value, though, it’s for your home equity. For example, if you own a house that’s worth one hundred and fifty thousand dollars and still owe ninety thousand dollars for your mortgage, that means that you have sixty thousand dollars in equity in the home. Your equity is the amount that you’ve already paid. It’s your ownership stake.

Most people filing for bankruptcy don’t have anywhere near sixty thousand dollars’ worth of equity in their homes, and especially considering how home prices and interest rates have fallen in the last few years, the likelihood that you’ll be able to keep your home is pretty good!

Rather than leaving it up to chance, though, it’s a good idea to make an appointment to consult with a bankruptcy attorney who can go over your finances and tell you for sure whether you can keep your home. It’s worth the peace of mind!

Bankruptcy and Divorce Payments

When you get divorced, it can be hard, especially when there are children involved. It can be hard enough to pay your own bills, but having to pay someone else’s bills, too? That can be quite a struggle!

Alimony and child support payments exist for a reason, though, and failure to pay them can directly result in someone else, possibly your children, going without food.

So what happens when you file for bankruptcy? Will the court discharge your alimony or child support payments? Not usually, no.

When you owe money to a creditor, that money goes into their bank accounts. But when you owe money to another person, that money goes directly into the things that they need to live. That’s why the courts usually won’t discharge alimony or child support payments unless there are significant mitigating circumstances.

However, bankruptcy can still be an immense benefit to you if you’re struggling with those payments. By having all of your other debts reduced or eliminated, that money that you used to pay to creditors can instead go to people who will actually appreciate it, and for whom it will make a difference in their life.

It’s best to secure the services of a bankruptcy attorney when dealing with complicated situations such as divorce or child support, because only a bankruptcy attorney will know how to properly represent those situations in court so that everyone can receive the highest level of benefits from your bankruptcy process.

You can only file for bankruptcy once every several years, so be sure that you make the most of it!

You Can Protect Your Inheritance

In movies and television, we’re all familiar with the classic cliché of the main character being left money or the family property from a dead relative. Often it’s the start of some sort of adventure, or life-changing experience.

There’s a reason for that: an inheritance is usually a very important event in your life, because the things that you’re left behind are often very significant to you, especially in the case of property.

But what happens when you’re left, say, your family home, but you’re so overwhelmed by debt that you’re afraid that you’ll be made to sell it? You can file for bankruptcy, but won’t they make you liquidate it?

Without a good bankruptcy attorney? Yes, absolutely. The court can and will seize inherited assets and sell them in order to pay your creditors.

But when you have a bankruptcy attorney, they know exactly how to fight for you in court, and how to protect your assets.

There are many exemptions built into bankruptcy law, but unless you know how to use them, they’re useless.

The fact of the matter is that it isn’t the court’s job to protect your assets, it’s their job to do whatever they can to take them away from you. That’s why you need a defender, someone who can stand up to the court and not let them do whatever they want.

If you’ve recently received an inheritance and are considering filing for bankruptcy, don’t wait to consult with a bankruptcy attorney, because the longer you wait, the worse it can be!