According to the American Bankruptcy Institute, Alabama’s bankruptcy rate is the fifth highest in the nation.A researcher said that Alabama has 7.42 bankruptcy filing per 1,000 residents. The national average is at 5.05 and Nevada had the highest rate of all the 50...
Chapter 7
Credit card delinquency decreases nationwide
A recent TransUnion report shows that the number of people who were late in making their credit card payments in the first quarter this year has decreased as compared to the previous quarter.Credit card delinquency is highest in Nevada, at 1.79 percent, with Florida...
General contractor’s bankruptcy story continues
General contractor Brian M. Marshall, founder of companies including Fireline Restoration Inc., Initech Restoration, Marshall Investments LLC, Marshall Aviation LLC, and numerous others, has requested that courts dismiss the latest of his bankruptcies or convert them...
Surge in Consumer Bankruptcy Filings
Despite the recent economic upturn, consumer bankruptcy filings have not slowed. In February, bankruptcy filings were up 14% compared to the previous year. The number of bankruptcy filings in February increased by a total of 9% from January’s, indicating a...
Can student loans be discharged in a bankruptcy?
During a bankruptcy filing, filers typically cannot discharge their student loans. However, there are two exceptions to this general rule. First, a student loan may be discharged if it is not guaranteed by the government or is not associated with any program that is...
Can tax obligations be discharged during a bankruptcy?
When individuals file for bankruptcy, they usually believe that they cannot discharge their tax obligations. However, some of these tax obligations may be discharged in a bankruptcy filing.In some cases, none of the tax obligations can be discharged. Certain...
Are education funds exempt from seizure?
Some education funds are exempt from seizure within limits. According to Alabama bankruptcy law, allowable funds include those that are place in an educational retirement account or qualified tuition program.They are limited to payments made to the fund within the...
What is a garnishment?
A garnishment is a way of collecting payment from a defendant. It orders a third party, which owes money to the defendant, to pay money directly to a plaintiff.Garnishments may cause significant financial hardship for those who have a number of debts. For this reason,...
The rise of Chapter 7 filings in the last few years
According to federal data, Chapter 7 bankruptcies have risen by more than 40 percent since 2007. This significant rise is likely caused by a number of factors.For instance, the recent economic crisis has led to lower incomes for many people. With these lower incomes,...
The means test for Chapter 7 bankruptcy
Given the high number of people filing for Chapter 7, the Bush administration passed the Bankruptcy Abuse Prevention and Consumer Protection Act in 2005. The act required people filing for Chapter 7 to pass the “means test.”The means test measures whether a debtor can...