It may sound obvious but most people contemplating bankruptcy are behind on their bills, and have rapidly deteriorating (or bottomed-out) credit scores. But everyone who contemplates filing a bankruptcy case is entitled to consider what impact the case will have on their lives going forward. When it comes to credit scores, there are a lot [...]

Here’s a short bit from a fascinating article by Gary Rivlin in Newsweek about the underbelly of the debt collection industry: David Mullins is one of the unlucky ones. For Mullins, a 57-year-old from the Baltimore area who lays cable for Comcast, the nightmare began when the financing arm of General Electric mistakenly hit him [...]

If you are filing for bankruptcy, one thing you might want to keep in mind is your upcoming relationship with the trustee assigned to the case. Although debtor-trustee relationships are sometimes combative, they don’t have to be, and usually aren’t. All in all, debtors fare better, and things go smoother, when the trustee is in [...]

The purpose of filing a consumer bankruptcy case is pretty obvious; to eliminate debts that can’t be paid, so that the debtor can receive a financial “fresh start.” That ideal is compromised, however, when debts don’t go away despite filing the case. Sometimes this is a matter of public policy (e.g. the current law on [...]

Imagine getting a knock on the door and finding a deputy sheriff outside. He hands you a fat envelope and departs without much formality. You’ve been sued. If you’ve fallen behind on your debts, chances are its a creditor who’s suing you. But when you look over the paperwork, the plaintiff is a name you [...]

Since BAPCA was passed in 2005, consumer debtors filing bankruptcy cases have been required to take post-filing classes in financial management (a.k.a. budgeting, or what old grumps like me knew as “home economics”) before getting a discharge of their debts. Most debtors take these “courses” in a single session, either online or over the telephone. [...]

Nothing will quite strike fear into the heart of a working person as much as a surprise wage garnishment (sometimes called an attachment of wages). It’s not fun to get your pay voucher, open it up, and find that a big chunk of it has already been taken by a creditor. Not surprisingly, folks in [...]

The city of Harrisburg, Pennsylvania has had an interesting experience in bankruptcy court lately. A majority of the city council thought that Harrisburg, which is Pennsylvania’s capital city (left), should file for municipal bankruptcy, because of debt incurred revamping the city’s incinerator. The mayor vetoed this plan, and the state government passed a law over [...]

Most people who have gotten to the point of reading this post understand that personal bankruptcy is usually an effective way of eliminating credit card debt. But that’s not all that can be shed with a Chapter 7 bankruptcy case. Consumers can also use the bankruptcy code to rid themselves of: * Cell phone contracts: [...]

The Boston Red Sox hired a new manager last week; baseball veteran Bobby Valentine will be taking over for Terry Francona next season. When the team announced the new hire, Red Sox general manager Ben Cherington said “One of the best parts of today is that it brings some closure to 2011 and now we [...]