It is quite common for those who have taken the plunge and opened their own business to end up in bankruptcy.  In fact, if you think about it, without bankruptcy laws, how many entrepreneurs would be willing to make the leap and start their own business?  If you could never escape the business debts incurred in starting up a business, the risk would simply be too great. So the question then, if you own a business, and file for bankruptcy personally, what will the impact be to the business?  Much depends on the chapter you personally file under. Business and…

For those of you researching or looking into the possibility of filing bankruptcy, you will have likely seen much written about a trustee that will be involved in your case.  All Chapter 7 and Chapter 13 bankruptcy cases are assigned a trustee that falls under the direction of the Department of Justice. Chapter 7 Bankruptcy In Chapter 7 cases, the role of the trustee is to obtain information and documentation from the debtor in order to verify the information disclosed in the bankruptcy petition and schedules.  Further, the trustee will preside at the Meeting of the Creditors (sometimes referred to as…

When I meet with clients I discuss how it is important that they disclose all of their assets, all of their debts, and be completely truthful on the information that we provide to the court.  Periodically after I give this admonition a client will ask “but how will the court know I have an asset if I don’t put it on my schedules?”  The short answer is, because you just told me.  While your attorney in the bankruptcy proceeding is your advocate before the court and is there to help you through the bankruptcy process, attorneys are governed by strict…

A common question I get asked of my clients with significant credit card debt is whether it would be more appropriate to try and settle with the credit card companies or to even hire a debt settlement company to help them negotiate with creditors.  Often I have found that the debt settlement route leaves a lot to be desired.  If, for instance, you have $25,000 in credit card and would like to try and settle this debt, typically the creditor will settle for 40% – 60% of the total balance owed — and that is if you can pay it…

I often hear or read discussions on whether it is truly necessary to hire an attorney when filing for bankruptcy.  After all, most people who are contemplating bankruptcy don’t have a lot of extra cash lying around.  While I am clearly biased in attempting to answer this question, I wholeheartedly recommend that you seek out an attorney to represent you through the bankruptcy proceedings.  There are three reasons why I would recommend seeking representation: (1) bankruptcy can be very complex; (2) you may be at risk of losing your personal belongings; (3) your creditors have attorneys representing them. First, bankruptcy…

As a person who has incurred significant student loan debt, I know first hand the pain that my client’s feel when they come in with significant student loan debt.  Education costs continue to rise while pay doesn’t seem to be keeping pace.  Further, if you are in a situation where there has been a change in circumstances or a physical injury that is preventing you from working, repaying student loans may seem impossible. Can Student Loans Be Discharged Through Filing Bankruptcy? Most are aware that student loans are not discharged through the bankruptcy process.  Section 523 of the Bankruptcy Code…