Category Archives: Bankruptcy

Sader Law Firm can help financially troubled individuals and businesses file for Chapter 7, 11 and 13 bankruptcy to erase and restructure debts.

Fiction & Facts: What’s True and What’s Not About Bankruptcy

By JAMES N. BOYCE For a lot of people, bankruptcy is a dirty word. That’s because there’s a lot of misinformation and misconceptions about bankruptcy. Today, let’s go over some of the most common fictions and talk about the facts. Fiction: If I file bankruptcy, I will never buy a house or get a mortgage. Facts: Bankruptcy can actually help you qualify for a mortgage and buy a house. If you are having trouble saving for a down payment because you are paying your debts, bankruptcy can help you save and afford a mortgage payment. Two years after getting a Chapter 7 bankruptcy discharge you can qualify for government-backed mortgages such as FHA, VA, or USDA loans. You can also get a government-backed mortgage during a Chapter 13 bankruptcy after one year. FHA loans are great for first-time homebuyers as you can pay as little as 3.5% down and have…
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Student Loan Fight Continues

A recent Business Insider article paints an eerie picture of the stats of the student-loan bankruptcy process. Since the Biden administration has pledged to reform the process entirely, the Education Department is making the lives of borrowers difficult by shutting down requests in court. Senate Majority Leader Chuck Schumer has asked for a fair balance for everyone who declares bankruptcy. “It’s outrageous that other people get to declare bankruptcy, but students can’t,” Schumer said at a press conference in February. Aaron Ament, the president of Student Defense, is asking for new policies that put the interests of student borrowers first. “While we strongly welcome the Department’s commitment to change how it treats student loan borrowers in bankruptcy, in the meantime, it continues to oppose discharges for cancer patients, struggling grandparents and public school employees with serious medical issues,” Ament told the Insider. “We join Senator Schumer in calling for a…
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8 Things You Should Know About Taxes & Bankruptcy

By STEVEN LONG With the tax deadline behind us, there’s a wave of people with new tax debt and there are folks receiving large tax refunds. Unsurprisingly, bankruptcy law cares a fair deal about taxes in either direction. The interaction between bankruptcy and taxes is complicated enough that not all bankruptcy lawyers will know all eight of these tidbits: Bankruptcy CAN eliminate tax debt. If the tax debt is old enough and the tax returns were filed long enough ago – a Chapter 7 or Chapter 13 bankruptcy can help erase tax debt. Bankruptcy CAN help resolve tax debt. If the tax debt is too new, the bankruptcy will not be able to delete the debt, but a Chapter 13 bankruptcy can help create a forced payment plan to resolve the tax debt. Bankruptcy CAN help resolve tax liens. If the taxing entity has filed for a lien, the tax…
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