Most of my clients come to me after a garnishment has been sent to their job. A few come to see me as soon as they are served with the lawsuit. I wish they would come to see me on the day they get sued, but that is not always practical.
If you get sued or served with papers trying to collect a debt there are several things you can do.
1) Ignore everything and hope it goes away.
Most individuals will qualify to file for Chapter 7 regardless of the amount of debt. However, income must also be considered when filing for Chapter 7 bankruptcy. For example, if disposable income is sufficient to fund a Chapter 13 repayment plan — which is determined by your attorney completing what is called a “Means Test” which subtracts certain allowed expenses and monthly payments for certain debts from your gross income — you will not be allowed to use Chapter 7 bankruptcy but rather qualify for a Chapter 13 bankruptcy.
This is an area where it is important to consult with an experienced bankruptcy attorney. Your attorney will review your situation in depth through the “Means Test” process and advise you accordingly based upon the results.
So to sum it all up – an individual, a partnership, a corporation or other business entity may qualify to file for Chapter 7 so long as:
Yes and no. Student loans cannot be discharged in a Chapter 7 or Chapter 13 bankruptcy (unless you can establish substantial hardship). Changes to the US Bankruptcy Code in 2005 even made private student loans non-dischargeable. BUT – a Chapter 13 does allow you to decrease or stabilize the repayment of your student loan debt for a 3-5 yr period. In a Chapter 13 bankruptcy, you can decide how much you can afford to pay monthly towards this debt rather than being at the mercy of possible garnishment, seizure of your tax refund, and bank account funds. If you are facing hardship due to student loan debt, consult an experienced bankruptcy attorney to fully understand all options and strategies available to you as soon as possible. You may not need to take action immediately, but you need to know what options are available so that you can take action quickly if and when it is needed.
A debtor must establish a substantial or undue hardship in order to receive a discharge (debt wiped out) of student loan debt in a Chapter 7 or Chapter 13 bankruptcy. Undue hardship typically means that you cannot maintain a minimally adequate standard of living and repay the loan. The rule, found in a New York bankruptcy case called Brunner vs New York Higher Education Services Corp., sets out a 3 part road map for discharging student loans in Chapter 7 bankruptcy.
The definition of student loans now includes private student loans as well as the federally-guaranteed ones and most bankruptcy courts take a hard line on this test, making it extremely difficult to discharge a student loan in bankruptcy, but, in rare cases, possible.
Payday loans are also referred to as cash advance loans, delayed deposit loans and deferred presentment loans. In a payday loan, a borrower writes a check to a lender in exchange for a short-term cash loan. The lender does not cash the check until the borrower’s next payday, up to 30 days.
The lender will require you to sign an agreement disclosing the amount of money you have requested, the Annual Percentage Rate (APR) as well as other related information. The lender will also require you to give them a personal check with an amount that reflects the loan plus the fee. The agreement may authorize the lender to automatically withdraw the funds from your bank account. You may redeem the check on or before the due date, which can be up to 30 days, if not, your check may be deposited or the loan amount will be automatically withdrawn from your account on the due date.
Warning: You are responsible for evaluating whether a payday loan is right for you. Payday loans are not intended to meet your long-term financial needs. The long-term use of payday loans may cause severe financial hardship.
Yes. Payday loans are classified as unsecured debt. If you cannot repay your payday loans, consult with an experienced bankruptcy attorney immediately to discuss your legal options.
We vowed we would repeat our win in 2012 and (drum roll please) – we did!!! Our race team had a great time – some ran, some walked, but all made it to the finish! We hope you enjoy the pictures below. We continue to challenge all our fellow Jacksonian lawyers to join us as we pink it up in 2013. We have our theme already! Will we 3-peat in 2013? Stay tuned…!
Frank with Kevin Farrell, the Host of Money Talks
This year I have the priviledge of participating in Millsaps College Continued Education program – 2012 Spring Enrichment Series that is open to the public. I will be hosting two sessions under the section “Money & Business”. Click here to register
“Who Owns your Home? Mortgage Securitization in Mississippi” will be a 2 class session
April 5 & April 12 from 6:00pm – 8:00pm. Millsaps Tuition Cost: $40.00 per person.
Mississippi is leading when it comes to mortgage delinquencies. In October 2011, there were more homeowners in Mississippi behind on house notes than in any other state of the union.
The Mortgage Bankers Association reported that there are 4.2 million homeowners across the nation more than 90 days late on their house note or are already in foreclosur
e status. Is this the indication of us being on the road to recovery that the media would us believe?
The fact is that mortgage service companies are not willing to provide modifications to help homeowners and as a result, foreclosures continue to rise. If you want to save your house, you cannot wait until the last minute, thinking a modification will come through. Get your documents together and meet with a lawyer now that handles bankruptcy and foreclosure defense to learn what options you have available. Get the information now – before you need it. Be prepared. Plan ahead. Think about it – what good is buying car insurance after the wreck? I continually meet with people that come in after the foreclosure sale date is set trying to figure out what they can do. In most cases we can still help and save the house, but it would have benefited the people so much more to have met with me as soon as their payments started falling behind. Timing matters – and knowing your options is worth it’s weight in gold. If you’re online, researching foreclosure because you’re worried about losing your home, the time is NOW to speak with someone. The most important thing is to save the home. There are options – the longer you wait, the less options there may be.
Mississippi Consumer Help Blog
