In these tough economic times, many Americans are desperate to make ends meet. Some are becoming trapped in a destructive cycle of payday loans. A payday loan is a short term, high interest loan that is secured by a post-dated check. The company loans the borrower a few hundred dollars that is repaid on the borrower’s next payday. What is meant to be a small, convenient, and short term loan to pay an immediate expense (an overdue electric bill, for instance), often results in multiple loans and an endless cycle of debt. Unfortunately, many payday loan borrowers are unable to free themselves from this cycle and are forced to seek bankruptcy protection.
Individuals often worry that the payday loan company may file a criminal “bad check” charge if the payday loan is included in the bankruptcy. The payday loan company wants you to believe this, and many have their customers sign a certification that the borrower is not contemplating bankruptcy.
While there are a few exceptions, generally being unable to pay a post-dated check is not a crime. When you wrote the check both you and the payday loan company knew there were not sufficient funds in your bank account to pay the check. Because there was no present intent to pay, the post-dated check is not a “bad check,” only a future promise to repay the loan.
Even after your bankruptcy is filed, a post-dated check may be presented for payment. In some cases (notably in the 6th and 8th Circuit Court of Appeals) courts have stated that the presentment of the post-dated check does not violate the automatic stay provisions of the bankruptcy code. However, some courts have said that the funds collected by the payday loan company is an “avoidable transfer” meaning the bankruptcy court could order the company to return the money.
If you have payday loans, consult with an experienced bankruptcy attorney. It is important to identify any outstanding payday loan before filing bankruptcy. Most payday loans are discharged without issue; however, payday loan companies are becoming increasingly more knowledgeable and aggressive towards debtors in bankruptcy. Discuss the matter with your attorney and protect your legal rights.
Showing posts with label discharged debts. Show all posts
Showing posts with label discharged debts. Show all posts
Friday, October 29, 2010
Monday, October 4, 2010
Divorce Debt and Bankruptcy
Since 1967 there have been several studies that rank stress due to a traumatic life event. The studies agree that divorce causes tremendous stress in a person’s life, and is number two in the rankings for most studies, behind death of a spouse or child.
Since divorce is such a stressful time, it is no wonder that people make mistakes with their finances during a divorce. Many couples either overlook or ignore the economic realities of their changed financial condition. In some cases financial mistakes made during the divorce can lead to bankruruptcy. In other situations bankruptcy is simply inevitable.
One financial mistake divorced couples commonly make is a misunderstanding of the family court’s “assignment” of a joint debt to one of the spouses. The family court has the authority to order one spouse to pay a particular joint debt. For instance, husband pays the MasterCard; wife pays the car payment and keeps the car. The court order may contain a “hold harmless” provision that means that if the obligated spouse does not pay the debt, and the other spouse is harmed, the obligated spouse is responsible to repair the harm (usually this means money damages). This order is enforceable through the court’s contempt power.
Many people mistake this assignment as an alteration of the contract with the creditor. The family court’s order does not change the couple’s joint obligation on the debt because the creditor was not a party to the couple’s divorce case. A joint debt remains legally enforceable against both or either party even after the divorce. If the obligated spouse does not pay pursuant to the family court’s order or the terms of the contract, the only recourse is to cry foul to the family court judge. The creditor can pursue any legal action to collect on the debt including reporting the delinquent account to the credit bureaus, filing a lawsuit against both spouses, and repossession or foreclosure as authorized by law.
Many couples can benefit from filing bankruptcy before a divorce is final. In most circumstances property that is owed by a husband and wife receives better protection from creditors than it receives if owned by a single person. Some debts that are ordered by a family court cannot be discharged by the bankruptcy court, so it is better to discharge those debts prior to a family court order. In some cases, if one spouse files bankruptcy and discharges a debt, a family court cannot reassign that debt to the discharged debtor.
Divorce can complicate the legal obligations of a divorcing couple’s finances. If you and your spouse are considering divorce and have significant debt, speak with an experienced bankruptcy attorney and discuss your options before finalizing your divorce.
Since divorce is such a stressful time, it is no wonder that people make mistakes with their finances during a divorce. Many couples either overlook or ignore the economic realities of their changed financial condition. In some cases financial mistakes made during the divorce can lead to bankruruptcy. In other situations bankruptcy is simply inevitable.
One financial mistake divorced couples commonly make is a misunderstanding of the family court’s “assignment” of a joint debt to one of the spouses. The family court has the authority to order one spouse to pay a particular joint debt. For instance, husband pays the MasterCard; wife pays the car payment and keeps the car. The court order may contain a “hold harmless” provision that means that if the obligated spouse does not pay the debt, and the other spouse is harmed, the obligated spouse is responsible to repair the harm (usually this means money damages). This order is enforceable through the court’s contempt power.
Many people mistake this assignment as an alteration of the contract with the creditor. The family court’s order does not change the couple’s joint obligation on the debt because the creditor was not a party to the couple’s divorce case. A joint debt remains legally enforceable against both or either party even after the divorce. If the obligated spouse does not pay pursuant to the family court’s order or the terms of the contract, the only recourse is to cry foul to the family court judge. The creditor can pursue any legal action to collect on the debt including reporting the delinquent account to the credit bureaus, filing a lawsuit against both spouses, and repossession or foreclosure as authorized by law.
Many couples can benefit from filing bankruptcy before a divorce is final. In most circumstances property that is owed by a husband and wife receives better protection from creditors than it receives if owned by a single person. Some debts that are ordered by a family court cannot be discharged by the bankruptcy court, so it is better to discharge those debts prior to a family court order. In some cases, if one spouse files bankruptcy and discharges a debt, a family court cannot reassign that debt to the discharged debtor.
Divorce can complicate the legal obligations of a divorcing couple’s finances. If you and your spouse are considering divorce and have significant debt, speak with an experienced bankruptcy attorney and discuss your options before finalizing your divorce.
Divorce Debt and Bankruptcy
Since 1967 there have been several studies that rank stress due to a traumatic life event. The studies agree that divorce causes tremendous stress in a person’s life, and is number two in the rankings for most studies, behind death of a spouse or child.
Since divorce is such a stressful time, it is no wonder that people make mistakes with their finances during a divorce. Many couples either overlook or ignore the economic realities of their changed financial condition. In some cases financial mistakes made during the divorce can lead to bankruruptcy. In other situations bankruptcy is simply inevitable.
One financial mistake divorced couples commonly make is a misunderstanding of the family court’s “assignment” of a joint debt to one of the spouses. The family court has the authority to order one spouse to pay a particular joint debt. For instance, husband pays the MasterCard; wife pays the car payment and keeps the car. The court order may contain a “hold harmless” provision that means that if the obligated spouse does not pay the debt, and the other spouse is harmed, the obligated spouse is responsible to repair the harm (usually this means money damages). This order is enforceable through the court’s contempt power.
Many people mistake this assignment as an alteration of the contract with the creditor. The family court’s order does not change the couple’s joint obligation on the debt because the creditor was not a party to the couple’s divorce case. A joint debt remains legally enforceable against both or either party even after the divorce. If the obligated spouse does not pay pursuant to the family court’s order or the terms of the contract, the only recourse is to cry foul to the family court judge. The creditor can pursue any legal action to collect on the debt including reporting the delinquent account to the credit bureaus, filing a lawsuit against both spouses, and repossession or foreclosure as authorized by law.
Many couples can benefit from filing bankruptcy before a divorce is final. In most circumstances property that is owed by a husband and wife receives better protection from creditors than it receives if owned by a single person. Some debts that are ordered by a family court cannot be discharged by the bankruptcy court, so it is better to discharge those debts prior to a family court order. In some cases, if one spouse files bankruptcy and discharges a debt, a family court cannot reassign that debt to the discharged debtor.
Divorce can complicate the legal obligations of a divorcing couple’s finances. If you and your spouse are considering divorce and have significant debt, speak with an experienced bankruptcy attorney and discuss your options before finalizing your divorce.
Since divorce is such a stressful time, it is no wonder that people make mistakes with their finances during a divorce. Many couples either overlook or ignore the economic realities of their changed financial condition. In some cases financial mistakes made during the divorce can lead to bankruruptcy. In other situations bankruptcy is simply inevitable.
One financial mistake divorced couples commonly make is a misunderstanding of the family court’s “assignment” of a joint debt to one of the spouses. The family court has the authority to order one spouse to pay a particular joint debt. For instance, husband pays the MasterCard; wife pays the car payment and keeps the car. The court order may contain a “hold harmless” provision that means that if the obligated spouse does not pay the debt, and the other spouse is harmed, the obligated spouse is responsible to repair the harm (usually this means money damages). This order is enforceable through the court’s contempt power.
Many people mistake this assignment as an alteration of the contract with the creditor. The family court’s order does not change the couple’s joint obligation on the debt because the creditor was not a party to the couple’s divorce case. A joint debt remains legally enforceable against both or either party even after the divorce. If the obligated spouse does not pay pursuant to the family court’s order or the terms of the contract, the only recourse is to cry foul to the family court judge. The creditor can pursue any legal action to collect on the debt including reporting the delinquent account to the credit bureaus, filing a lawsuit against both spouses, and repossession or foreclosure as authorized by law.
Many couples can benefit from filing bankruptcy before a divorce is final. In most circumstances property that is owed by a husband and wife receives better protection from creditors than it receives if owned by a single person. Some debts that are ordered by a family court cannot be discharged by the bankruptcy court, so it is better to discharge those debts prior to a family court order. In some cases, if one spouse files bankruptcy and discharges a debt, a family court cannot reassign that debt to the discharged debtor.
Divorce can complicate the legal obligations of a divorcing couple’s finances. If you and your spouse are considering divorce and have significant debt, speak with an experienced bankruptcy attorney and discuss your options before finalizing your divorce.
Monday, August 16, 2010
Bankruptcy Can Help Build a Better Future
Pop quiz: What do Walt Disney, Mark Twain and Larry King have in common?
They each filed a personal bankruptcy and went on to have extraordinary success in life.
Bankruptcy is not a professional or financial death sentence. Just ask Donald Trump who has filed multiple Chapter 11 reorganization bankruptcies for his casinos. Bankruptcy is a financial tool that uses the federal law to protect the honest, but unfortunate debtor. Bankruptcy allows the debtor the opportunity to restructure finances and formulate a plan to repay or discharge debt. Bankruptcy provides the debtor a fresh start to a new financial future – one free of the pressures from debt collectors.
Here’s another question: What honor did Kim Basinger and Burt Reynolds receive after filing personal bankruptcy?
Each was nominated for an Academy Award in 1997. Basinger won an Oscar for best supporting actress for L.A. Confidential, and Reynolds was nominated for best supporting actor for Boogie Nights.
Bankruptcy can help you and your family build a more solid financial foundation. Henry Ford created another automobile company after his first company filed bankruptcy. It’s safe to say that Ford Motor Company would not exist today without the help of the federal bankruptcy laws. The same can be said for General Motors, which filed for Chapter 11 bankruptcy in 2009.
How can bankruptcy help you? The bankruptcy laws can stop a foreclosure sale, a pending lawsuit, and creditor harassment. Bankruptcy can protect your family assets and retirement accounts from creditors. Bankruptcy can eliminate debt or give you time to repay loans including delinquent car and home payments. The federal bankruptcy laws helped over a million people get relief during 2009, including celebrities Stephen Baldwin, Sinbad, and Bernie Kosar.
As Abraham Lincoln (filed bankruptcy in 1833) once said, “The best thing about the future is that it comes only one day at a time.” If you are experiencing overwhelming financial difficulty, take the first step to a better future by speaking with an experienced bankruptcy attorney today.
They each filed a personal bankruptcy and went on to have extraordinary success in life.
Bankruptcy is not a professional or financial death sentence. Just ask Donald Trump who has filed multiple Chapter 11 reorganization bankruptcies for his casinos. Bankruptcy is a financial tool that uses the federal law to protect the honest, but unfortunate debtor. Bankruptcy allows the debtor the opportunity to restructure finances and formulate a plan to repay or discharge debt. Bankruptcy provides the debtor a fresh start to a new financial future – one free of the pressures from debt collectors.
Here’s another question: What honor did Kim Basinger and Burt Reynolds receive after filing personal bankruptcy?
Each was nominated for an Academy Award in 1997. Basinger won an Oscar for best supporting actress for L.A. Confidential, and Reynolds was nominated for best supporting actor for Boogie Nights.
Bankruptcy can help you and your family build a more solid financial foundation. Henry Ford created another automobile company after his first company filed bankruptcy. It’s safe to say that Ford Motor Company would not exist today without the help of the federal bankruptcy laws. The same can be said for General Motors, which filed for Chapter 11 bankruptcy in 2009.
How can bankruptcy help you? The bankruptcy laws can stop a foreclosure sale, a pending lawsuit, and creditor harassment. Bankruptcy can protect your family assets and retirement accounts from creditors. Bankruptcy can eliminate debt or give you time to repay loans including delinquent car and home payments. The federal bankruptcy laws helped over a million people get relief during 2009, including celebrities Stephen Baldwin, Sinbad, and Bernie Kosar.
As Abraham Lincoln (filed bankruptcy in 1833) once said, “The best thing about the future is that it comes only one day at a time.” If you are experiencing overwhelming financial difficulty, take the first step to a better future by speaking with an experienced bankruptcy attorney today.
Thursday, July 8, 2010
Medical Treatment And Bankruptcy
It is no surprise that illness is a chief contributor to personal bankruptcy. In fact, a 2009 study released by Harvard researchers claims that 62% of all personal bankruptcies during 2007 were caused by health problems. Many individuals struggling with medical bills need relief, but worry about how a bankruptcy will affect their ability to receive medical care in the future.
Under the Emergency Medical Treatment and Active Labor Act hospitals and ambulance services are required to provide emergency healthcare to a person regardless of ability to pay. This federal law requires appropriate medical screening, necessary stabilization, and transfer to an appropriate facility for treatment of an emergency condition. In broad general terms, if you have an emergency medical condition, a hospital ER must treat you.
If you do not have an emergency medical condition, the hospital or doctor may refuse treatment to a bankruptcy debtor. It is unusual for a hospital to deny service after bankruptcy unless the patient demonstrates an inability to pay the new bill. If you have insurance or other form of guaranteed payment, the hospital will likely treat you.
Individual physicians are more likely to deny services if you have discharged their bill. Many bankruptcy debtors want to continue a relationship with their personal doctor, and consequently make payment arrangements after the bankruptcy has been filed. While the bankruptcy law requires the debtor to list every creditor, there is no prohibition against paying a debt after the bankruptcy. Paying the debt does not renew or create a new obligation and the doctor may not take action to collect a discharged debt (i.e. writing or calling to encourage payment).
If you need to include medical bills in your bankruptcy, but worry about receiving future medical care, consult with your bankruptcy attorney. In most cases there is no interruption in medical care or treatment. Know your legal rights and be informed of how your bankruptcy will affect your ability to receive medical care.
Under the Emergency Medical Treatment and Active Labor Act hospitals and ambulance services are required to provide emergency healthcare to a person regardless of ability to pay. This federal law requires appropriate medical screening, necessary stabilization, and transfer to an appropriate facility for treatment of an emergency condition. In broad general terms, if you have an emergency medical condition, a hospital ER must treat you.
If you do not have an emergency medical condition, the hospital or doctor may refuse treatment to a bankruptcy debtor. It is unusual for a hospital to deny service after bankruptcy unless the patient demonstrates an inability to pay the new bill. If you have insurance or other form of guaranteed payment, the hospital will likely treat you.
Individual physicians are more likely to deny services if you have discharged their bill. Many bankruptcy debtors want to continue a relationship with their personal doctor, and consequently make payment arrangements after the bankruptcy has been filed. While the bankruptcy law requires the debtor to list every creditor, there is no prohibition against paying a debt after the bankruptcy. Paying the debt does not renew or create a new obligation and the doctor may not take action to collect a discharged debt (i.e. writing or calling to encourage payment).
If you need to include medical bills in your bankruptcy, but worry about receiving future medical care, consult with your bankruptcy attorney. In most cases there is no interruption in medical care or treatment. Know your legal rights and be informed of how your bankruptcy will affect your ability to receive medical care.
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