Managing Debt and Personal Finances

Student Loans in Chapter 13 Bankruptcy

Although bankruptcy is not always the best answer to your student loan problems, in some situations Chapter 13 bankruptcy can help. If your loans are in default and you cannot rehabilitate your loans and get on an income based repayment plan (perhaps because of your other expenses), Chapter 13 bankruptcy

Which Is Better for Getting Student Loans Out of Default: Consolidation or Rehabilitation?

If you are in default on your federal student loan payments, federal law provides two very powerful options for getting out of default: rehabilitation and consolidation. Most lenders will offer both to you, with little explanation of the pros and cons of each. But there are differences between the two,

Federal Limits on Wage Garnishment

If a judgment creditor files for a wage garnishment against you, it may be limited in how much it can take from your wages. That is because most of your wages may be protected from garnishment under the federal Consumer Credit Protection Act (CCPA). The laws of your state may offer even greater protection. Read on to learn more.

Federal Wage Garnishment Law vs. California Wage Garnishment Law

Both federal law and California law place limits on the amount that creditors can garnish from your wages. For the most part, judgment creditors cannot take more than 25% of your disposable income in a wage garnishment. But if you earn close to the minimum wage, California protects more of your wages than does federal law. On the flip side, under both federal and California law, if your creditor is the IRS, state taxing authority, the Department of Education, or a child support creditor, it can take even more.

Deficiency After Car Repossession: Will I Still Owe Money?

If your car lender repossesses your car, truck, van, motorcycle or other vehicle, you may not be off the hook financially. If your car was underwater (you owed more than it was worth) you’ll likely still owe money to the lender, called a deficiency.

Dealing With a Deficiency Judgment After Car Repossession

If your car has been repossessed for failure to make payments, the sale price of your car at auction may not cover the balance that you owe to the lender. If not, your lender can ask that a court enter a monetary judgment against you for the remaining balance on your loan, called a deficiency judgment. Once it has a deficiency judgment against you, the lender can take steps to collect it.

Using Chapter 13 Bankruptcy to Get Your Car Back After Repossession

If your car, truck, SUV, van, motorcycle, or other vehicle is repossessed, there are several ways that you may be able to get it back. One of those methods, filing Chapter 13 bankruptcy, may allow you to get your car back from the lender, revise the terms of the loan to make them more favorable to you

When a Judgment Creditor Requests a Deposition, Documents, or Written Answers

If a creditor gets a judgment against you, it will then take steps to collect on that judgment. The creditor can collect by garnishing your wages, or selling some of your assets or property. Before the judgment creditor does this, it must first find out whether you are employed, how much money you make, and what assets you own.

When the Creditor Gets a Lien Against Your Property

If a creditor gets a judgment against you, it can then place a lien on your property. The lien gives the creditor an interest in your property so that it can get paid for the debt you owe. If you sell the property, the creditor will be paid first before you receive any proceeds from the sale. And in

Can my military security clearance be revoked because I'm in default on a debt?

Question I’m in the military and over the past few years I’ve accumulated a lot of debt. I’m delinquent on most of my accounts (including a car loan and several credit cards) and figure I owe at least $20,000. Can my military security clearance be revoked because I stopped making payments on these

Car Repossession and Members of the Military

If you are on active duty in the military, the Servicemembers' Civil Relief Act (“SCRA”) provides special protections to you in the event your lender tries to repossess your car. (Learn more about car repossession.) The lender may not repossess the car without a court order. If the court permits

Deficiency After Car Repossession: Will I Still Owe Money?

If your car lender repossesses your car, truck, van, motorcycle or other vehicle, you may not be off the hook financially. If your car was underwater (you owed more than it was worth) you’ll likely still owe money to the lender, called a deficiency.

Should I ignore a debt collector's calls and letters?

Question I’m behind on a lot of my bills and debt collectors are starting to call me. I’m also receiving collection letters in the mail. I don’t have enough money saved up to pay off the debts. Should I ignore the collection calls and letters? Answer If debt collectors are hounding you and you

Will a Chapter 13 Bankruptcy Fix My Credit Score?

The decision to file for chapter 13 to fix credit can be a difficult one for people who want to do more than pay down their debts. However, the decision shouldn’t be a hard one because chapter 13 can fix credit. Once people have good credit, they can obtain better interest rates and loans. Credit Scores

Questions to Expect at the 341 Meeting in Your Bankruptcy Case

During your bankruptcy case, whether you file under Chapter 7 or Chapter 13, you will have to attend a meeting with your creditors and the bankruptcy trustee in charge of your case.

Documents Needed For The Meeting of Creditors

Whether you file for Chapter 7 or Chapter 13 bankruptcy, you must attend a mandatory hearing called the meeting of creditors (also called the 341 hearing).