Filing for Bankruptcy

15 May Is Bankruptcy Right For Me?

I read Bankrate.com quite a bit, but not because it is such an authoritative source of personal finance information. Rather, I read Bankrate articles because my hometown newspaper reproduces them to fill its personal finance section with content, and they are usually decent, if not oversimplified, synopses of various topics. A recent Bankrate article reproduced in my paper suggests there are three components you should consider prior to filing personal bankruptcy: financial, emotional, and future consequences.
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11 May Discharge of Spouse Protects Community Property

The usual rule in bankruptcy is that an individual's discharge only relieves the debtor of liability for a debt. Anyone else liable on the debt with the debtor remains liable. The rule is markedly different in a community property state. As a recent decision in California illustrates, in a community property state, a community creditor cannot reach the post bankruptcy wages of either spouse, as those wages are protected by the one spouse's discharge. When one spouse files bankruptcy, all of the community property acquired during the marriage comes into the bankruptcy estate. All of the claims enforceable against the community property are allowable in that bankruptcy case. Thus, it's only fair that , having gotten their bite out of the (community) apple, any community property that is acquired during the marriage, is free of the pre bankruptcy claims.  
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06 May Read Those Documents At Closing!

Credit Slips notes that when Carissa Byrnes Hessick appeared as a guest blogger on Prawfsblawg, her post on closing on a house, and the comments to that post, amount to a mini-debate on pros and cons of reading contracts before you sign them. Professor Hessick was greeted with astonishment when she and her husband actually read everything presented to them for signing at closing on their home. The comments reveal some reasons why more people don't do that: it's socially awkward, time to read them is not built into the process, it's pointless for a non-lawyer to try to read them, and even "despair."
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26 Apr Garnishments in Missouri (Part Two)

Missouri lowers the allowable garnishments to 10% from 25% of wages after deductions if the debtor being garnished is the head of a family Few Missouri cases examine the head of a family requirement. Courts tend to adopt a broad view of the word family. For head of the family status, a debtor has to be actually supporting a household. Making this determination is based mostly on economic considerations for the goal of the exemption is to preserve the family unit. A family is “a collective body of persons who live in one house under one head or manager.” The head of that family is one who “contracts, supervises and manages the affairs about the house, not necessarily a father or a husband.”
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