I often meet with clients who have been struggling financially for months or even years. They have been coming up with strategies on their own in order to make ends meet. These are people who work hard, and have faith their hard work will pay off eventually with stability for their families. By the time…
Details“Deciding to file bankruptcy has caused so much stress in my life.” My client said these words the first time we met for an initial consultation. “I’m so sorry you are going through a tough time. I am here to help. Nobody wants to file bankruptcy, and that’s why we should discuss your non-bankruptcy options…
DetailsAlmost everyone I meet with in my Asheville office would like to find a strategy to avoid bankruptcy. I examine their non-bankruptcy options before ever considering a filing. One option is to borrow money against a retirement account in order to pay back debts. The good news for 401k loans is that they are easy…
DetailsI speak to prospective clients frequently who have a HAMP loan modification which has been finalized, and have paid their modified payments on time since, but have credit card debts still accumulating. In this scenario, filing a Chapter 7 bankruptcy to clear away credit card, personal loan, and medical debts should not adversely affect your…
DetailsMost people I represent are concerned about their 341 meeting where they can be asked questions by the trustee assigned to their case. It’s court. Creditors are invited to come too. Sounds scary, right? The truth is that most of the 341 meetings last about 10 minutes, and are much less stressful than my clients…
DetailsYour current monthly income (“CMI”) is defined in the bankruptcy code as income you have received during the previous six months before filing a bankruptcy petition. If you file your case in March, the relevant months will be September, October, November, December, January, and February. If you add up all of your gross income for…
DetailsEverybody knows that filing a bankruptcy case is a negative mark against your credit score. However, most of the people I meet with arrive in my office with high balances near the maximums, late payments, or other types of similar negative marks already. Generally speaking, most potential clients are going to need to rebuild their…
DetailsA bankruptcy preference is a transfer of an asset shortly before a bankruptcy filing to a specific creditor. These types of transfers result in one creditor being treated more favorably than other creditors. Generally, the trustee will review the 90 days before a bankruptcy petition is filed to determine whether such a transfer should be…
DetailsCreditors are sending out IRS Form 1099-C seemingly more than ever these days when a debt is cancelled (short sale, credit card settlement, etc.) or sometimes when discharged in bankruptcy. The reason people receive these forms is that the IRS treats forgiven debts as income based on the theory that someone could be paid for…
DetailsI hear from clients all the time who feel guilty about not paying back their credit card debt or falling behind on their mortgage. In my opinion, banks utilize a strategy of laying that guilt on so people pay good money on bad debts when they have a right not to. This story about the…
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