Bankruptcy Basics

A few weeks back, I blogged about how it was very difficult to wipe out a student loan in bankruptcy.  Everything mentioned in that blog still applies, including the fact that wiping out student loans in bankruptcy is very difficult.  Now the question presented is whether or not "private student loans" are dischargeable in …

8th Circuit Bankruptcy Appellate Court (controlling in Nebraska and Iowa) denies discharge of student loan debt It's a very tough situation.  Very, very tough.  Getting rid of student loan debt in bankruptcy is a serious challenge but not necessarily impossible. In a decision filed on October 27, 2014, the Bankruptcy Appellate …

On June 12, 2014, the United States Supreme Court ruled that an individual that owns an inherited IRA may not protect or exempt the same if they file bankruptcy.  In the case of Clark v. Rameker, Trustee, the Debtors in bankruptcy attempted to exempt approximately $300,000 from an inherited IRA.  The Clarks had argued unsuccessfully …

There are so many myths surrounding the bankruptcy process and many of these myths prevent people from considering filing for bankruptcy to relieve the financial stress.  Some common myths are discussed here. A medical bankruptcy Fact and Fiction.  A “medical bankruptcy” is not an official bankruptcy term.  However, many …

Maybe.  I say "maybe," because technically, an overpayment of unemployment benefits is automatically discharged in bankruptcy unless the state objects to the discharge of that particular debt.  If you live in Nebraska, you can surely expect that the Nebraska Department of Labor will object to the discharge of the debt owed to them …

What is a discharge? The definition, according to the Webster Dictionary, is “to end the service of (someone) in a formal or official way.” According to the Black’s Law Dictionary, a discharge is “any method by which a legal duty is extinguished; esp., the payment of a debt or satisfaction of some other obligation.” In Bankruptcy, a …

What is a lien avoidance and why is it important? I recently passed my sixth year as a practicing bankruptcy attorney. Over these years my experience has impacted my advice to clients. One of my first memorable experiences involved a powerful tool under the bankruptcy code is known as “lien avoidance.” Basically, “lien avoidance” is …

Taking action is hard.  Sometimes, simply ignoring the growing pile of bills or avoiding the endless phone calls seems easier than facing what might be inside the envelope or who might be on the other end of the phone line.  But, merely ignoring debt problems won’t make them magically disappear.  In reality, ignoring unpaid bills …

How Medical Care Can Lead to Bankruptcy Of all the trials the American people face, perhaps none is more troubling than the financial difficulties brought on by the rising costs of consumer goods and services such as health care. The state of the economy changes every day, which naturally results in fluctuating prices for certain …

It's almost never too late for bankruptcy to stop a judgment or garnishment. I am often asked questions about whether or not it is too late to file bankruptcy to wipe out a judgment or garnishment.  Common questions include: Will a bankruptcy wipe out a judgment? Is it too late to file bankruptcy if I have already been …

With today's economy and a vast number of people hurting financially, the search for a "cheap bankruptcy attorney" is on the rise.  Although Omaha and the metro area missed a lot of the early months of the great recession, it has finally caught up to Nebraska and Iowa. Understandably, people needing to file bankruptcy are looking …

Can I protect the equity in my house in Nebraska if I file bankruptcy? Normally, the answer is yes, up to $60,000.  But, not everyone qualifies for this exemption.  The bankruptcy homestead exemption law in Nebraska is geared toward protecting families and people 65 years of age or older.   Thus, if you are married and live in the …

Millions of Americans are facing a student loan debt crises.  The young, in particular, have collectively been robbed and cheated of a bright economic future by crushing amounts of student loan balances.  Out of desperation for a solution, more and more people are wondering if bankruptcy of some sort could deal with this problem. …

As a bankruptcy attorney, a very common scenario that I experience is a person that is facing a foreclosure or is worrying about owing money after a foreclosure sale, short sale or deed in lieu of foreclosure. With so many foreclosures in the recent past and with many more in the works, a lot of people are faced with exactly this …

Few areas of consumer bankruptcy law cause more confusion and frustration than the issue of an inheritance.  Part of this reason is likely due to the fact that a loved one has recently died and this was their money and is was intended for me!  There is a natural and strong feeling of a bond between a mother and father, for example, …