It is one of the big triggers for Chapter 7 Bankruptcy. Not every relationship stays together. This, is a fact of life. Not shocking stuff right? But, the aftermath of a divorce can leave you financially and emotionally devastated. The question naturally becomes, do I get a divorce first or start my Chapter 7 Bankruptcy first?

After about a decade of steady decline, bankruptcy filing rates have leveled off since about 2015. Many observers take that to mean the filing rates will start going back up, which has not happened since a spike in filings following the 2005 bankruptcy reforms.

The filing rates are usually higher in non-judicial foreclosure states like Minnesota. Other than bankruptcy, homeowners in these states have few options once the mortgage company begins foreclosure proceedings.

Bankruptcy filings declined again in 2017, but only by 0.07 percent. That’s the smallest decline since 2010, and it signals that the number of filings may soon inch back up. The growing number of retail and other business bankruptcies may accelerate this trend. Small brick-and-mortar, mom-and-pop businesses in Minnesota and elsewhere simply cannot compete anymore.

That last point is an important one. Moneylenders like to promote the myth that only people who recklessly overspend and are financial failures file bankruptcy. This myth discourages people from seeking Chapter 7 and other bankruptcy relief. In some cases, overspending is a problem. But in most cases, there are other issues involved. Typically, these issues are beyond the debtor’s control.

Legally no. There is no legal requirement that you must have so much debt before you qualify for a Chapter 7 Bankruptcy. In theory, you could file Chapter 7 Bankruptcy on $500.00 in debt. Now, you wouldn’t do this because it wouldn’t make any sense.

Yes, Chapter 7 Bankruptcy is public information. To get this information you would have to know the website to go to, create an account, and link a credit card to it so you can be charged for documents you download. One of the more pervasive concerns Americans, suffering from overwhelming debt have is, is bankruptcy public information and who will know I filed Chapter 7 Bankruptcy? We get that concern completely. But, like most concerns, the way it works in reality is not what you think.

Every year, the IRS collects over $3 trillion. Given the size of this revenue stream, many people think that the Service will overlook a few thousand dollars in unpaid taxes here or there. But that’s definitely not the case. The IRS is, in effect, the world’s largest bill collector. And this agency has access to many tools that private debt collectors can only dream about.

Bankruptcy is usually the best way, and sometimes the only way, to keep the IRS at bay. As outlined below, it gives families breathing space and also permanently eliminates tax debt in many cases.

We have talked about many issues surrounding the impact of filing Chapter 7 Bankruptcy on your credit reports, credit score, and credit profile. But, in this blog I am going to write about what actually happens to your credit reports when you file Chapter 7 bankruptcy? Like, when you actually file a Chapter 7 Bankruptcy what do your credit reports say? What do they say when the bankruptcy is done? What happens if the credit reports are incorrect?

The impact a Chapter 7 has on your credit reports is a paramount concern for anyone in the United States who is considering filing a Chapter 7 Bankruptcy. There are a lot of misconceptions about how long a Chapter 7 Bankruptcy remains on your credit reports. I have heard everything you can imagine but the single most common misconception is that a Chapter 7 Bankruptcy remains on your credit report for 7 years. Not true.

What an exciting time in your life!? I know that sounds strange to say but once you summon that courage to tackle an overwhelming debt problem, you naturally want to know okay, how long does this take? The process starts with setting up a consultation with a competent bankruptcy lawyer. Never, and I mean never, ever, contact or meet with a paralegal or an out of state “sales person” who is a non-lawyer. Only lawyer can give you legal advice. Most will do it for free at the first consultation.

Since about 2000, college tuition has increased massively in most places. At the same time, banks have remained eager to lend these students lots of money, even as credit requirements elsewhere tightened. As a result, Americans now owe over $1.5 trillion in education debt. If everything goes as planned for recent graduates, paying off student loans is usually not a problem. Many people might have to put off large purchases for a few years, but that’s a price most are willing to pay.

But as we know, everything does not always go according to plan. That’s basically the reason that the United States has such a generous bankruptcy law. In most cases, the debtors simply miscalculated, and they deserve fresh starts.

It is the America dream. Quit your miserable job and start out on your own. Stretch and try to reach new heights while having a blast and making gobs of money right? I am not sure there is a person alive who has not had the flicker of running their own business at one point.

A common concern for so many people is can I get financing for homes/vehicles after I file Chapter 7 Bankruptcy? Now, this is a good question although ponder this question- Can you get financing to purchase a home/car now?  Most cannot. For those that can, I ask if you could get financing for a home/car now would you pay higher interest or need a co-signer in order to get the financing? Most say yes.

You sit back and think to yourself, ok if I summon the courage to do this, can my Chapter 7 Bankruptcy be denied? The answer is yes, but it is very rare. The vast majority of Chapter 7 Bankruptcies go through and debtors receive a discharge- i.e. their debts get wiped out, tax free, forever! Occasionally, Chapter 7 Bankruptcy filings can go awry.

Filing Chapter 7 Bankruptcy is public information. There are numerous companies who purchase this public information to solicit you immediately after filing Chapter 7 Bankruptcy. Credit card companies are notorious for sending credit card solicitations to debtors immediately after filing. Why would they do this? Because, upon discharge, you are debt free, which means you will then have the ability to repay your debts to the new credit card. Crazy right? I know!

This is a common question we get. Do I have to disclose all my assets? Yes, when you file Chapter 7 Bankruptcy, you are required to sign the disclosures you make under penalty of perjury that all of the information contained in the disclosures are true, correct, and complete. In other words, you are required to disclose all your assets including your home and vehicles.

A Chapter 7 Bankruptcy is an asset based bankruptcy. Debtors do not make payments back to their creditors. Instead, debts get wiped out or discharged to the extent there are no non-exempt assets to liquidate and disburse to creditors. The vast majority of Chapter 7 Bankruptcies are what we call no-asset bankruptcies. That is, debtor have no non-exempt (unprotected) assets they would lose to a Chapter 7 trustee.