Hearing the term “attorney fees” when filing for a bankruptcy can be a real nail biter. Let’s face it, if you are behind in paying other bills, hearing about a new expense can cause even more anxiety. The good news is, once you have retained an attorney, the creditors stop calling. That still leaves many with the question, “How do I come up with the money for my attorney fees?”
The short answer is yes, there is a way to discharge your student loans. However, the long and explicative answer is more complicated and less encouraging.
Student loans are extremely common causes of debt for average Americans. Due to the rising cost of a college education paired with an unforgiving and dismal economy, more and more college graduates are falling victim to paralyzing student loan debt.
The company responsible for Ho Hos, Twinkies, and Ding Dongs has announced that it has filed for bankruptcy protection. Hostess Brands has filed for Chapter 11 bankruptcy once before, in 2004 when it was under the name Interstate Bakeries Corp. The company recently came out from a financial restructuring process in 2009 with changes that the company now considers as “insufficient.”
Eastman Kodak Co., the notoriously innovative company that was credited with making the camera financially assessable to the greater public, is considering filing for Chapter 11 bankruptcy, according to the Wall Street Journal. How did a company that was once so successful end up in such a rut?
Due to the unprecedented real estate market, many people are facing the very difficult question of whether to let their underwater homes go by short sale, foreclosure, or surrendering the home during bankruptcy. In many cases a short sale may be the best option; however, in cases that involve recourse loans, it may be in your interest to surrender the home through bankruptcy.
There are two common tools in bankruptcy that relate to mortgages. The first is called a “Lien Strip,” and the second is a “Cramdown.” It’s important to note that these tools are only available in a Chapter 13 bankruptcy. (Chapter 13 requires monthly payments.)
It’s extremely common to have multiple names on a single bank account. Married couples do it all the time. Parents put their names on their children’s accounts. Domestic partners will often open joint accounts. Children will put their names on accounts for their aging parents. Usually, this is to provide the joint signer of the account access to the money in case something happens to the primary owner. When people file for bankruptcy, they often think they have access to money in any bank account that has their name on it. This, however, is not the case.
Bankruptcy does not affect custody rights. If you currently have a custody or visitation agreement or order in place and need to file bankruptcy, you can rest assured that the bankruptcy will not change the determination. It is important to note that any agreement or order regarding child support will also remain unaffected by the bankruptcy. Child Support is a non-dischargeable debt, and whatever past due amount of child support you may owe and whatever amount you are obligated to pay on a monthly basis will remain the same unless a change is made through the Family Court.
In fact, I tell this to every potential client that comes into my office. You are under no legal obligation to hire an attorney to file bankruptcy. However, the practical answer is different. Do I think it is imperative to hire a bankruptcy attorney to file bankruptcy? Absolutely.
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