Urban Legend #2 - People File Bankruptcy Because They Live Beyond Their Means

By Keith Rucinski, Akron, OH
Chapter 13 Trustee

woman_looking_at_finance

“Only people who live beyond their means file bankruptcy.”

When people think of individuals who have filed bankruptcy they often think of people who cannot manage their money and live “beyond their means.” Images of expensive cars and large homes often come to mind, this is not commonly seen with those who file for bankruptcy. This is one of the most common urban legends about bankruptcy and those who seek bankruptcy protection in order to get a fresh financial start.

READ MORE

Can You File a Bankruptcy Case without a Lawyer?

By Jason Wilson Aguilar

Chapter 13 Trustee | Seattle, WA

woman_looking_at_finance

Yes, you can file a bankruptcy case without a lawyer. There is no legal requirement that you must have a lawyer represent you in a bankruptcy case. The real question is whether you should file a bankruptcy case without a lawyer who specializes in bankruptcy law. In my opinion, the answer to that question is no.

READ MORE

Why Some Chapter 13 Cases End Before They Ever Get Started

Filing a Chapter 13 case is easy.  Keeping it going is the tricky part. 

Jeff Narmore, PC
Narmore Law Office

Pensive millennial man in glasses sit at table work on laptop read letter correspondence thinking, thoughtful young male distracted from computer consider paperwork or post notification at home

A Chapter 13 case can provide immediate relief and peace of mind.  There is a certain element of “instant gratification” that gives it appeal on day one of the case.  In many jurisdictions a case can be filed for “no money down.”  Spending a few hours at an attorney’s office and signing some paperwork will make the foreclosure, repossession, garnishment or other collection efforts stop, as if by magic.

Read More

Nine Things to Look for When Picking a Bankruptcy Lawyer

BFine Administrator

Shaking hands

Deciding to file bankruptcy is difficult, stressful, and can seem expensive. It can involve other family members and will have a lasting effect on your financial future.

The process is complicated. It is important to have a good attorney by your side.

How do you pick a good bankruptcy attorney? The choice is very important and it is usually made when you are stressed out.  Here are things to consider when picking a lawyer.

Read More

BFine Terms You Need to Know

BFine Administrator

e-learning education concept, learning online with webinar, video tutorial, internet lessons

Managing your financial future is easier when you understand what is being said. Below are some of the key terms that are used with finance and bankruptcy.

For more definitions visit:

Read More

Bankruptcy Urban Legends Part 1

By Keith Rucinski, Akron, OH
Chapter 13 Trustee

urban

“If I file for personal bankruptcy I will lose my car and house, and be left destitute the rest of my life.”

This is one of the most common urban legends about bankruptcy. Filing for bankruptcy does not mean you will lose all your “stuff” and be left destitute. The purpose of bankruptcy is to allow people to get a fresh financial start. Some famous people who have filed bankruptcy to get a fresh start include Harry Truman (33rd President of the United States), Walt Disney, and Henry Ford.

READ MORE

About Personal Bankruptcy

How Much Does It Cost To File For Bankruptcy?

Forbes

man reading bills

Filing for bankruptcy protection can free you from burdensome debts and nagging bill collectors, but there’s a cost. Depending on the type of bankruptcy, consumers may have to pay a few hundred to several thousand dollars to get relief from debt under the nation’s bankruptcy laws.

READ MORE

What Chapter 13 Bankruptcy Is And How It Works

The Good Men Project

Chapter 13 Bankruptcy paper

Times are challenging in America with the coronavirus. You may be experiencing the stress that comes with financial hardship and are considering a Chapter 13 bankruptcy. The purpose of this article is to inform you about the most important things about Chapter 13 bankruptcy.

READ MORE

What Can Cause My Chapter 7 Bankruptcy To Be Denied?

Lawyers.com - July 8, 2022

woman_looking_at_finance

Was your Chapter 7 bankruptcy denied? If so, you may be wondering what happens next. First, you should understand why your Chapter 7 bankruptcy can be denied.

READ MORE

How Much Does It Cost to File Bankruptcy? 3 Things to Know

The Good Men Project - July 14, 2022

man_on_phone

The cost to file bankruptcy is $338 for a Chapter 7 bankruptcy and $313 for a Chapter 13 bankruptcy for bankruptcy filings in 2022, but the answer becomes more nuanced and confusing if you decide to file with a bankruptcy attorney and if you are trying to get the filing fees waived.

READ MORE

Chapter 7 Bankruptcy: What Is It, and Is It Right for You?

Forbes Advisor - June 2, 2022

student

Chapter 7 bankruptcy is the bankruptcy filing most often used by consumers. It provides protection from creditors, puts a stop to most collection efforts and can eventually wipe debts away.

Read More

If you’re facing bankruptcy, here’s what experts say to do before, during and after you file

CNBC

student

Bankruptcy may feel like financial rock bottom but it’s a chance to start again fresh. It’s best to work with experts to make sure your personal bankruptcy is handled correctly and eases rather than complicates your financial life.

READ MORE

It's the Law: What can I keep in bankruptcy?

Post Register - May 29, 2022

bfine hive150

Many people wonder if they file for bankruptcy, what will they get to “keep?” Will they get to keep a house, a car, or an investment property?

READ MORE

My dad declared bankruptcy. What happens to mom’s credit?

NJ Moneyhelp - Nov. 23, 2021

bfine hive150

Q. My father declared bankruptcy without telling my mother. How will this affect her credit?

Read More

Bankruptcy offers a fresh start after a financial crunch and helps creditors get their fair share of what's left

Business Insider - Dec. 17, 2021

bfine hive150

Bankruptcy is a legal process that helps individuals and businesses resolve outstanding debts while also fairly managing the payments owed to creditors. Creditors involved in bankruptcy proceedings, however, typically don't receive full payment. 

READ MORE

Fresh Start

Is 401(k) safe in bankruptcy?

Bankrate - May 27, 2022

bfine hive150

If you are filing for bankruptcy, you will likely be relieved to hear that, yes, your 401(k) is generally safe in bankruptcy.

READ MORE

Buying A House After Bankruptcy

Forbes - Nov. 30, 2021

bfine hive150

Buying a house can be a challenge in itself, but if you’ve had to file for bankruptcy, owning a home may seem all the more difficult to achieve.

Read More

5 Ways to Get Financing With a Bankruptcy in Your Past

The Motley Fool - Dec. 15, 2021

bfine hive150

Just because you've had a bankruptcy doesn't mean you can't get financing to invest in real estate. Find out how.

READ MORE

How Bankruptcy Works

How To File For Bankruptcy

Yahoo

women and bills

Feeling crushed by debt is stressful, but there are options. If you find yourself saddled with more debt than you can pay off in a timely manner, you can file for bankruptcy. Filing for bankruptcy is a serious step and one that often comes with negative connotations. Some people worry that it’s a sign of failure or that they’ll then carry a financial stigma that will affect their credit. However, sometimes bankruptcy is the best way to get a new start.

READ MORE

How Long Does It Take to File Bankruptcy?

Vents Magazine

man_on_laptop

When considering filing for bankruptcy, many people wonder how long it will take. The process can vary depending on the type of bankruptcy and the individual’s case, but in general, it is usually a few months from beginning to end.

READ MORE

How Chapter 13 Bankruptcy Works in Texas

Legalreader.com - June 1, 2022

bfine hive150

You may make a good income but are unable to afford your debts, so you are looking at a Chapter 13 bankruptcy in Texas. Filing Chapter 13 bankruptcy is a big decision. You are committing to a bankruptcy repayment plan that could last for up to five years.

READ MORE

Will My Income From Cannabis Affect My Bankruptcy?

Lawyers.com - May 31, 2022

computer

Are you considering filing for bankruptcy? Do you receive any income from the sale of cannabis or cannabis products? 

READ MORE

Bradley’s Bankruptcy Basics: The Automatic Stay and the “Why” Behind the Warnings: What Happens Once a Debtor Files for Bankruptcy?

National Law Review - Jan. 19, 2022

bfine hive150

Many creditors have been warned of the need to halt collection efforts once they are put on notice that a debtor has filed for bankruptcy. 

READ MORE

A person in possession of a debtor’s property upon a bankruptcy filing now has more guidance from the Supreme Court as to the effect of the automatic stay.

JDSupra - Nov. 3, 2021

bfine hive150

A person in possession of a debtor’s property upon a bankruptcy filing now has more guidance from the Supreme Court as to the effect of the automatic stay.

Read More

Recent News

Study Reveals Racial Bias in Bankruptcy Cases

Ebony - Nov. 2, 2021

bfine hive150

According to a recent study, approximately 30 percent of African-American filers are more likely to have their bankruptcy cases dismissed than non-Black bankruptcy filers, Yahoo News reports.

Read More

Bankruptcy Filings Continue Steady Drop

US Courts - May 17, 2022

us courts

Bankruptcy filings continued a steep two-year-long fall that coincided with the start of the coronavirus (COVID-19).

READ MORE


A public education project of the National Association of Chapter Thirteen Trustees

© 2021 BFINE



DISCLAIMER
The materials on this website are for general information purposes only and should not be construed as legal advice, legal opinion, or any other advice on any specific facts or circumstances. You should not act or refrain from acting upon this information without seeking professional advice.