The borrower’s personal liability for a home equity line of credit or a standard second position home mortgage is dischargable in bankruptcy.  A reader of my website Bankruptcy in Brief, emailed me about conflicting input she was getting in her self prepared bankruptcy case.
I learned that the sources of misinformation continue to multiple:  some HUD [...]

Technically yes.  Debtors are frequently surprised to find that they are still personally liable for HOA fees after filing for bankruptcy, even though they have moved out and for all intents and purposes made known their intent in the bankruptcy that they are surrendering their property back to the bank.  Such liability is the result of [...]

Unlisted, unscheduled debts are not discharged in the First Circuit, which covers Puerto Rico and New England (except Connecticut).  All medical bills must all be listed, even if you believe them to be covered by insurance, because the insurance company may later deny the claim.  Cosigned or guaranteed debts of others must be listed, even [...]

Student Loans are a necessary evil for most individuals looking to pursue higher education.  They were for me, and as I look back, I didn’t have to worry about the economy or a difficult job market after I dealt with the bar exam.
Historically, when times get tough, many people go back to school, and they [...]

In re Kesler, 2009 WL 650421 (Bky.S.D.Ill. March 9, 2009), held that $29,118.18 in carpenter’s apprentice training costs were non-dischargeable as “educational loans” within the meaning of section 523(a)(8) of the bankruptcy law.  The bankruptcy court rejected the debtor’s argument that because no actual monetary loans were ever made to him, his obligation to pay [...]

A Minnesota bankruptcy court recently held that the income of a non-debtor wife should not be considered to increase the income of a chapter 7 debtor, for purposes of considering whether the husband’s student loans should be discharged as constituting an “undue hardship.”  The court held that while the wife’s income could be considered to the extent [...]

In determining when to file a bankruptcy consideration should be given to whether you have made any transfers which can be reversed.  In certain situations the Trustee or a Creditor may be able to recover property or money that has been transferred and have those assets brought back into the bankruptcy estate to be available [...]

Two Massachusetts bankruptcy judges have disagreed about requiring a debtor to apply for the Income Contingent Repayment Plan when seeking a discharge of student loans.
Student loans are discharged if, after a trial, one can prove that repayment will impose an undue hardship.  Here in Massachusetts, that is commonly meant to be an inability to maintain [...]

In bankruptcy, creditors are permitted to object to the dischargeability of a debt incurred by fraud. Such complaints often initiate very contentious proceedings (and are often combined with complaints to deny a debtor’s general discharge). When faced with a fraud complaint in bankruptcy under Section 523(a)(2), here are some points to remember.

The creditor [...]

Divorce and bankruptcy often go hand in hand.  What many people don’t realize is that filing for bankruptcy can make a divorce easier by eliminating the fights and concerns over paying debts that the individuals are not in a position to pay.   Financial problems can contribute significantly to marital problems, so it isn’t surprising that [...]