Most of us have monthly payments on credit cards, rent, mortgages, student loans or vehicles. When you lose your job, you may be suddenly unable to afford these payments. This is especially true if you cannot access unemployment benefits or lack an emergency savings fund. You could face consequences for defaulting on your debt obligations. Lower credit scores, property seizures and wage garnishments are three possible outcomes of a debt default. Depending on your individual circumstances, you may benefit by filing for bankruptcy after a job loss. Bankruptcy can help with the following: 1. Stopping creditor collection actions. Bankruptcy’s automatic stay can stop most creditor collection actions. For instance, the automatic stay may stop wage garnishments or property seizures. The automatic stay may stop new lawsuits from being filed against you 2. Discharging certain debts. You may discharge certain debts after filing for bankruptcy. Bankruptcy could allow you to discharge…
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You could suffer far-reaching and devastating consequences if you default on your student loans. Your balance will become due immediately. You could face thousands of dollars in fees, damaged credit scores and wage garnishments. These are only a few of the many consequences that may result from a student loan default. Job loss is a common reason why people default on their student loans. After a job loss, many people find they are unable to make payments. Fortunately, there could be several options that may help you avoid a student loan default until you can find another job. Option 1: Enroll in an Income-Driven Repayment Plan If you have federal student loans, then you may be eligible for an income-driven repayment plan (IDR plan). These are plans that limit your monthly payments to a percentage of your household income. If you do not have income, then you could owe $0…
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Business Insider recently published an article on how Chapter 11 bankruptcy cases increased by 63 percent since last March. The article used bankruptcy filing data published by the American Bankruptcy Institute (ABI). According to the data, there were 770 Chapter 11 filings this past March. There have not been this many Chapter 11 cases filed in a single month since April 2011. Why are so many Chapter 11 cases being filed? Part of the reason is because many businesses with physical locations, such as shopping mall retailers, are struggling to remain profitable. Brick-and-mortar businesses, as they are sometimes called, are experiencing severe financial difficulties. We wrote a recent blog on Toys ‘R Us that went into more detail on why these stores are struggling. Why Should Businesses File for Chapter 11 Bankruptcy? Businesses may benefit from Chapter 11 bankruptcy if they are struggling financially. In fact, Chapter 11 may give…
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*Credit card payments will not be accepted for bankruptcy cases, unless pre-approved by The Sader Law Firm. If you have a question about a credit card payment, please call our Office Manager at (816) 561 1818.
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