Understanding Chapter 7 Bankruptcy Exemptions

Chapter 7 bankruptcy is an option for debtors who simply cannot pay off their creditors due to any number of circumstances: divorce, job loss, or high medical bills. The common view of people who file for bankruptcy is that they must be deadbeats or living beyond their means, but it’s normal people who file for [...]

Proposed Bill Would Change Role of Student Loans in Bankruptcy

Student loans have become infamous for rarely being discharged in bankruptcy. However, before 2005, only government-backed student loans were protected—private student loans could be forgiven in bankruptcy.
The Chicago Defender reported that several U.S. lawmakers have proposed a piece of legislation that would allow bankruptcy courts to once again discharge student loans issued by private lenders.
The [...]

Bankruptcy Filings at Post-2005 High

Bankruptcy filings among American individuals and businesses rose to record levels in March of this year, according to a report by Reuters. Here’s a look at the numbers and what they mean for bankruptcy in the U.S.

158,141 bankruptcy petitions were filed in the U.S. during March, 2010, according to numbers released by Automated Access to [...]

Your Car in Bankruptcy

For many people considering filing for bankruptcy, it’s important to know whether they’ll be able to get on with their lives afterward—and for many, that will be determined by whether or not they have a car.
And, with car issues in the news pretty often these days, they’re certainly on our minds. Here’s a little crash [...]

College Savings Funds at Risk in Bankruptcy Filings

A recent ruling by an Idaho bankruptcy judge, reported by the Des Moines Register, could mean bad news for parents with 529 tax-advantaged college savings plans for their children who file for bankruptcy.
The Ruling
The case in question apparently involved a couple who had put $14,500 into a 529 college savings account for their daughter. The [...]

Bankruptcy Provision aside, Consumer Protection Passes House

Late last week, the U.S. House of Representatives voted to approve a bill that introduces a spate of consumer protection measures.
The amendment that would have permitted homeowners to address foreclosure in bankruptcy by altering the terms of mortgage loans (in what’s known as “cramdowns”), though, did not make the cut.
Provisions of the Bill
The Wall Street [...]