Bankruptcy and Divorce. Which Comes First?

File for Bankruptcy First. If you and your spouse are on good terms, then consider a bankruptcy before the divorce. By filing jointly, all debts will be addressed under one bankruptcy case. You can wipe out your joint debts together and may also be able to increase your exemption amounts. This is also helpful if one spouse makes all the money because it will increase the chance of qualifying for a Chapter 7 for that spouse. Bankruptcy will also eliminate contracts that neither one of you wants, like car loans that cost too much or mortgages on houses that are 

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Will Bankruptcy Wipe Out All My Debts

Yes, with some exceptions. Bankruptcy will not normally wipe out: • money owed for child support or alimony; • most fines and penalties owed to government agencies; • most taxes and debts incurred to pay taxes which cannot be discharged; • student loans unless you can prove to the court that repaying them will be an “undue hardship;” • debts not listed on your bankruptcy petition; • loans you got by knowingly giving false information to a creditor, who reasonably relied on it in making you the loan; • debts resulting from “willful and malicious” harm; • debts incurred by 

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Famous people who survived and thrived after bankruptcy

Famous people who survived and thrived after bankruptcy The word “bankruptcy” is thought of as an admission of failure; something that an individual or a business can never rebound from but is that true? I don’t so. Abraham Lincoln didn’t think so either when his general store that he ran as a young man failed in New Salem, Illnois, in 1832. Honest Abe got behind on his bills and his creditors took him to court. Abe lost his remaining assets: a horse and some surveying gear. Unfortunately for Abe, Congress passed the bankruptcy law in 1841, which probably would have 

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Bankruptcy Increases Your Credit Score

The Federal Reserve Bank of Philadelphia published a study in 2014 where they analyzed 600,000 bankruptcy filers and examined their credit access after consumer bankruptcy between 2002 to 2013. The Conclusion: The average credit score in 2010 went up more than 80 points — from 538 to 620. Contrary to the bankruptcy myths out there, bankruptcy improves your credit score. But Why? A credit score is composed of 35% payment history; 30% outstanding debt ; 15% length of credit history; 10% new credit; and 10% credit mix. Bankruptcy erases the 30% of outstanding debt and that is why your credit score increases 

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What About My Car?

What About My Car? When you file Chapter 7 bankruptcy, you have options with your car. You can KEEP IT – or – REPLACE IT, and save thousands in the process! 722 Redemption is a section of the United States Bankruptcy Code that empowers a debtor with the statutory right to redeem their vehicle for what the vehicle is worth – NOT what they owe. Let’s say you owe $30,000 on your car note but the market value of your car is only $15,000. You can use the 722 Redemption process to refinance the vehicle at $15,000. That means you 

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