In the recent circuit court case of Homaidan v. Sallie Mae, Inc., a federal circuit court held that a ruling by a New York bankruptcy court that private loans to pay for college education are not exempt from being discharged under the Bankruptcy Code’s Section 523. This section of the Bankruptcy Code excludes from discharge…

In what could likely end up an influential ruling, a Delaware court recently held that securing a “critical vendor” status in Chapter 11 commercial bankruptcy case ultimately offers no defense in situations where the vendor later faces legal action for the recovery of preferential payments that the debtor recoups shortly before bankruptcy. The Role of…

The bankruptcy process is available to both consumers as well as businesses that cannot pay their debts and want to find a way to regain control of financial obligations. Consumer bankruptcy often takes one of two forms. Chapter 7 bankruptcy involves the liquidation of a person’s non-exempt assets into funds that are used to pay…

People who file for Chapter 7 bankruptcy must meet certain income qualifications. In most  cases, debtors who fail to meet income requirements do not qualify for Chapter 7. People with higher income levels often must pursue a repayment plan under Chapter 13 to take control of debt. People who are currently unemployed or who have…

Many people look at marriage as one of the momentous events in their life. If you or your fiancee is struggling with debt and debating whether to file bankruptcy, however, your situation can easily turn into a confusing one. You might even be wondering whether it is a good idea to file for bankruptcy or…

An automatic stay is one of the critical parts of filing bankruptcy. The stay stops most collection efforts against a debtor as soon as that individual files for bankruptcy. These orders exist without the need for a court order. To give you a better idea of the role that the automatic stay plays in a…

If you are navigating the bankruptcy process, you have likely heard multiple people refer to bankruptcy schedules. Overwhelmed debtors are often confused about exactly what role schedules play in their bankruptcy process. Schedules are the primary forms that debtors rely on to provide their financial details, which play a vital role in navigating the bankruptcy…

 Individuals in California who file for bankruptcy are often given a second chance at building a strong credit record. This does not come without a compromise, though. When Chapter 7 bankruptcy is involved, a person must often hand over a substantial amount of their estate in the process. A bankruptcy trustee then manages the estate…

Financial difficulties can leave you uncertain about what to do next. While bankruptcy is one of the best ways to take control of your finances, the bankruptcy process can be complex and intimidating for many, which is why the assistance of an experienced bankruptcy lawyer is necessary.    There are several important questions to ask…

While many people have heard of the bankruptcy “means test,” they are uncertain about what exactly this test includes. The means test is used to determine if a person’s income is low enough to qualify to file for Chapter 7 bankruptcy. The purpose of this test is to block individuals with higher salaries from filing…