Can I be fired or lose my job for filing bankruptcy?

No, at least not legally.  Federal law 11 U.S.C. 525(b) is the section of the bankruptcy laws that prohibits your employer from firing you because you filed for bankruptcy or had debts that were dischargeable in bankruptcy. This applies whether you work for the government or a private employer. This law even prohibits your employer from firing you if the discharged debt is a debt owed to your employer (e.g. you work for Chase bank and have a Chase credit card that had a balance that you discharged in bankruptcy). What you need to decide is whether or not this…

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How badly will bankruptcy affect my credit score?

  Credit scores are funny things. The calculation is a mystery, as is some of the logic behind it. The formula is a secret of the companies who generate the scores. We know generally that if we pay our bills on time, our score will be better. If we do not, it will be worse. Other than that, we do not know for sure and there is much debate about how many things affect your score. Credit scores also are fluid. They go up and down almost constantly as our lives, including our credit lives, change almost constantly. The reason…

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Bankruptcy’s Benefits

When people think about bankruptcy, they do not get warm and fuzzy at the thought of it. Some fear bankruptcy. Some hate it. Some are confused by it.  Bankruptcy is not something we strive to achieve in life. It is not a goal or an aspiration. Unfortunately, many contemplating bankruptcy think of themselves as failures. I do not know anyone who thinks of bankruptcy and has happy thoughts. What those people do not focus on, and in my opinion should, are the many benefits that bankruptcy offers. As I have said in other posts, bankruptcy is a tool to achieve…

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Can I use Bankruptcy to wipe out my car loan and still keep my car?

  I heard something very disturbing last night. A potential client (“PC”) came in for an initial consultation, wanting to file for bankruptcy. She had very little debt, comparatively speaking, of course. Her biggest problem was that she was not earning enough money to pay her monthly expenses. While I explained to her that a bankruptcy will not fix that problem and offered alternative possible solutions, she inquired about her car. She has a 2008 vehicle that she purchased new. Her payments are almost $400 / month, which is a lot for her. She can’t afford this car and wants…

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What are the types of bankruptcy and what are the differences between them?

For most individuals, the primary types of bankruptcy you will consider filing are a Chapter 7 or a Chapter 13 bankruptcy.  A Chapter 7 is what is sometimes referred to as a “straight” or liquidation bankruptcy and the Chapter 13 is referred to as the “repayment” bankruptcy. The primary difference between them is that the Chapter 7 wipes out all eligible debt without any repayment and in a Chapter 13, you typically pay back a portion of your debts. This article will focus on who is eligible for a Chapter 7 and why you would opt for that Chapter. In…

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