After a judgment is entered against you in a court of law, creditors gain legal rights to collect the debt you owe, including the possibility of wage garnishment. Here’s what typically happens after a judgment is granted and how wage garnishment works: 1. Notification of Judgment Once a judgment is issued in favor of the […]
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Running up your credit cards before filing for bankruptcy can be problematic. Here’s why: Potential Fraud: If you make large purchases or take cash advances on your credit cards shortly before filing for bankruptcy, the court or creditors may view this as fraudulent behavior. They could argue that you never intended to repay these debts, […]
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Yes, most of your credit cards will likely become null and void after you file for bankruptcy. Here’s how it typically works: 1. Chapter 7 Bankruptcy: Debt Discharge: In Chapter 7 bankruptcy, most of your unsecured debts, including credit card debts, are discharged. This means you are no longer legally obligated to pay those debts. […]
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Yes, bankruptcy can discharge certain older tax debts, but there are specific conditions that must be met for this to happen. Generally, these conditions apply to federal income tax debts: Conditions for Discharging Tax Debts in Bankruptcy: The Three-Year Rule: The tax return for the debt must have been due at least three years before […]
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Filing for bankruptcy significantly impacts your credit, and it usually takes time before lenders are willing to extend credit to you again. Here’s a general overview of what you can expect: Immediate Impact: After filing for bankruptcy, your credit score will likely drop significantly, making it harder to get credit in the short term. Credit […]
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Whether you get to keep most of your assets in bankruptcy depends on several factors, including the type of bankruptcy you file, the value of your assets, and the exemptions available in your state. Chapter 7 Bankruptcy Liquidation Bankruptcy: In Chapter 7, the bankruptcy trustee may sell some of your non-exempt assets to pay off […]
