Filing for Bankruptcy

03 Apr Payday Loans by Any Other Name: Still Not a Rose!

payday loansPayday loans can be dangerous forms of credit. Interest rates are astronomically high (according to an FDIC advisory, between 300 and 1000 percent when calculated annually), a significant number of payday loan customers take out multiple loans per year, and it’s difficult to determine a legitimate company from a fly-by-night business front. Many customers get trapped in a never ending cycle. By the time the loan comes due on the next payday (along with an additional $1.50 to $2 for every $10 borrowed), the customer can’t afford to repay the loan and pay his current bills. He then takes out another payday loan for just a bit more. When one loan company stops extending credit, the customer moves to the next, borrowing to pay off the first. Nothing about this sounds good or appealing, right?
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02 Apr Biggest Tax Time Mistake Can Also Cost You in Bankruptcy

[caption id="attachment_39439" align="alignleft" width="300"]Tax Day is Coming! Tax Day is Coming![/caption] There are a lot of mistakes you can make at tax time. One of the biggest--in fact, it is absolutely the biggest--is to fail to file your return on time. That particular mistake can also cost you if you are in bankruptcy, or if you need to file bankruptcy. The temptation not to file a return may be great. You may know that you owe taxes. You may be unsure that you have all the paperwork needed to file. You may purely hate to deal with numbers. None of those are good excuses, and here's why:
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06 Feb Do Not Rely on Speculative Income When Commiting to Your Chapter 13 Plan

rolling the diceI knew that my Social Security disability client had filed a bankruptcy with another lawyer but I was not aware that my client planned to use his lump sum past due benefit check to fund his Chapter 13 plan. Not surprisingly, my disability client was especially unhappy when his case was turned down by the judge. I was not surprised - my client’s case was weak and he had appeared before a Social Security judge with a higher than average rate of denials. I was shocked, however, to learn that my client had promised his bankruptcy lawyer that his case was a slam dunk winner, and equally shocked the lawyer built the hoped for lump sum payment into my client’s Chapter 13 plan.
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