Book Yoda. Business & Investing.

I live in Ohio and my husband and I are filing bankruptcy. I was reading about bankruptcy laws and saw where it said that student loans could be included if the judge ruled that it would cause undue hardship. What does this mean, and when is it considered an "Undue hardship"

Student loans are generally not dischargeable, and each request is considered by the bankruptcy judge. Should a debtor be totally and permanently disabled and have no reasonable expectation of earning income for the remainder of the debtor's life, that might be discharged --- unless the judge found an expectation of inheritance, etc. (and believe me, they will investigate!) Terminal illness may also be considered to constitute undue hardship. Mere poverty, other obligations, and inconvenience are not considered undue hardship in bankruptcy court when tax dollars are up for discharge. It's really tough to meet! Your attorney can give you advice on this issue, and will be able to research the cases for any applicable precedents. I trust you have an attorney. If not, you need one! (If a bankfuptcy is filed and then thrown out, which can happen by errors and omissions in the filing as well as anything the court considers fraud, all discharged obligations are immediately in full force, and the debtor is barred from re-filing for bankruptcy for quite some time.)

2009-02-23 11:02:46 by Emmy j

STX Crossfire Guest Joel Gonzalez Clip 1

The bankruptcy trustee told me to ammend my exemption schedule to include my 2007 return, but I don't know the code.
I filed with out an attorney, so I have to find the code by myself.

There is a Schedule of Exempt Assets on your bankruptcy petition. You should include your 2007 tax refund stating the amount as "if any" unless you know the actual amount.

Do you have an attorney? Ask him and get an answer from someone who has all the facts and knows your state laws; that's what you pay him for.

2008-01-23 10:41:57 by Nickie G

I am considering filing bankruptcy due to the fact that in the last year i have willing foreclosed on my home and now it looks as though I am going to have to do the same with one of my cars, and I am just wondering if it wouldn't be better to file bankruptcy since my credit can't get any worse than what it already is, and that way I could have a chance at starting over fresh.

It used to be that you could file bankruptcy rather quickly and simply. Now, a "means test" is imposed to determine if you are eligible for chapter 7 or must file under chapter 13. If you must file under chapter 13, in most cases you will have to pay a trustee your disposable income (as defined) for 5 years in most cases or 3 years in some cases. In addition, there are more debts that are non-dischargeable than before. There are particularly strict rules for taxes and domestic support obligations that you may owe. You are required to take a credit counseling session before you file your case and a financial management session before you can get a discharge.

There are many traps for the unwary. If you slip up or miss a deadline or fail to file an important paper, you case will be dismissed. That can have harsh consequences if you then get it right and file again.

More than ever, you need a competent lawyer to handle your bankruptcy case.

Filing fees have increased and the fee for a competent lawyer has also increased.

You should plan at least 2-3 weeks from the time you think you need to file until you do file. Most bankruptcy lawyers these days will want payment in full before you file your case too.

2007-02-01 11:24:25 by Jennifer m

Bankruptcy is the old school, holistic way of dealing with dying diseased companies and financially mortally wounded personal finances.

Yet in modern times we've added many twists and turns to bankruptcy law, and well, we broke it. Many of malevolent and/or counter-productive additions are via the US Congress's constant need for campaign and personal finance bolstering. That is a number of the new bankruptcy sections were bought by particular interest groups. Others are the outcome of Judicial fiat, and the most latest is the new "politcal" bankruptcy where federal politicians and political policy makers are now -- by political fiat! -- allowed to takeover and reconstitute private, state-chartered corporations and federally-charted banks. That is bankruptcy by another name -- the name is invented yet so let's call it what it is "politically extorted bankruptcy arrangements".

The most new and egregious example of the last is the politically extorted .bankruptcy of GM, where Union-allied elected officials have turned the bulk of the companies assets over to the Union, in so doing unreasonably screwing the private bondholders.

Can you help me by listing what you know to be significant changes for the good or bad in bankruptcy process, both the formal legal process and the informal practical arts, or even the possibly criminal modern political extortions now occurring.

Good bankruptcy law; Bad bankruptcy law. Can you help me list some of more significant changes that have had either a strong bad or good effect? Thanks!

2009-04-30 05:22:25 by bvw

I was told that in order to file chapter 7 bankruptcy in Maryland, you have to prove you can't pay the debt. What proof is needed to show this?

good info on this link.... it is tougher to get a chapt 7 now...

2007-06-27 16:39:57 by lady_just_chilling