Category Archives: Bankruptcy

Bankruptcy protection is a constitutional right and our attorneys have a wealth of experience to share with you.

Seven Mistakes That Can Hurt Your Credit Ratings

Your credit scores are created by using the information that is contained on your three credit reports, which are compiled by Equifax, Transunion and Experian. There are also different types of credit scoring models that are used by various lenders. For example, there are various types of FICO scoring models. VantageScore is also becoming more popular with lenders. Despite the diversity of scoring systems, there are still common factors that can hurt or improve your scores. Making late payments. Creditors could report you to the three credit bureaus if you do not make timely payments on your debt obligations. This may occur after 30, 60, 90 or 120 days. Depending on the creditor, you may not be reported for six or more months. Late payments can seriously harm your credit scores. Overextending your credit. Your credit scores can also be hurt if take out too many lines of credit, especially…
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Should I File for Bankruptcy for Medical Bills?

A story involving a $17,000 post-surgery drug test has made headlines across the country. The story involves a 30-year-old Texas State University student who was billed $17,000 after she took a drug test to show that she was not abusing her pain medication. According to the woman, the laboratory that conducted the testing was out-of-network and billed her excessively for the services she received. Out-of-network hospital bills have become a major financial problem for millions of Americans. Even in cases where you do have insurance and select a hospital that is covered by your insurance, certain specialists or employees may not be covered. You could be stuck paying the remainder of what your insurance will not cover, if it covers anything at all. Many people have filed for bankruptcy to discharge medical bills. Whether you should file for bankruptcy on your medical bills would depend on the circumstances. You could…
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What is a Tax Refund Offset?

Did you know the IRS launched tax season on January 29? Millions of Americans are gearing up to file their taxes, and if everything goes smoothly, receive tax refunds. In 2017, the IRS issued 108,761,000 refunds. However, your tax refund could be offset by the Department of the Treasury or the IRS if you owe government debt. Tax refund offsets can be issued for: Defaulted federal student loans: Your tax refund could be offset if you have defaulted on federal student loans. In this case, the Department of Education would refer your defaulted loans to the Department of the Treasury to initiate a tax refund offset. You are generally considered in default after 270 days of nonpayment. Unpaid child support: You could be subjected to a tax refund offset for unpaid child support. The Office of Child Support Enforcement could refer your unpaid support to the Department of the Treasury….
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Are There Requirements for Filing Bankruptcy?

Bankruptcy can be a great option for protecting important assets from creditors while discharging troublesome debts. However, there are requirements for filing that vary depending on the specifics of your case and which bankruptcy Chapter you file under. In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act, which overhauled the bankruptcy code. Debtors are now required to pass the means test to file for Chapter 7 bankruptcy. However, you do not have to take the means test if your debts are primarily business debts. If your household size and income are below the average in New Jersey, you pass the means test. If your income and household size are not below the average, the court requires an analysis of your disposable income and unsecured debt before determining whether you can file. Chapter 7 bankruptcy also has other requirements, so it is important to speak with a bankruptcy…
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Will Bankruptcy Get Rid of My Student Loans?

Bankruptcy attorneys are used to answering common questions from potential clients. Questions about the effect of bankruptcy on credit scores, employment, homes and property repossession are very common. However, another question people ask is whether filing for bankruptcy would have any effect on their student loans. It is extremely difficult to file for bankruptcy on student loans, but it is not impossible. You would have to meet very specific criteria. The bankruptcy court would require you to show that repaying the loans would pose an “undue hardship” on you or your dependents (if you have any). Different courts use different tests to determine what constitutes undue hardship. If the court evaluated your case with the original Brunner test, it would consider factors such as: Whether you could maintain a minimal standard if living if you were forced to repay the loans. Whether you had made a good faith effort to…
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