Debt Law

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Although an individual can file for a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, both types involve the same four steps, according to Money Crashers. These steps include providing a financial inventory, receiving credit counseling, attending a creditors' meeting and completing post-bankruptcy credit counseling. Most bankruptcy cases are handled through paperwork rather than court attendance.

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  • What is a good bankruptcy score?

    Q: What is a good bankruptcy score?

    A: The lower a bankruptcy risk score, the better. According to Bankrate, bankruptcy risk scores range from negative numbers to 2,000. While these scores are hidden from consumers, businesses use them to decide whether to extend credit to a customer.
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  • What is life like after bankruptcy?

    Q: What is life like after bankruptcy?

    A: Life after bankruptcy includes a new financial beginning and some challenges. Bankruptcy stays on a credit report for 10 years, which limits credit options, according to Bankrate. Lenders sometimes view individuals who filed bankruptcy as too risky because some past debts were written off. As a result, individuals who filed bankruptcy may not be issued a credit card for some time.
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  • What happens during bankruptcy?

    Q: What happens during bankruptcy?

    A: Although an individual can file for a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, both types involve the same four steps, according to Money Crashers. These steps include providing a financial inventory, receiving credit counseling, attending a creditors' meeting and completing post-bankruptcy credit counseling. Most bankruptcy cases are handled through paperwork rather than court attendance.
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  • What happens to debt when a person moves out of the country?

    Q: What happens to debt when a person moves out of the country?

    A: The results of moving out of the United States and leaving debt behind vary from lawsuits filed on behalf of the debt holder to poor credit for the debtor. Depending on the length of time out of the country, there may be no result.
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  • Q: What is the Mortgage Forgiveness Act of 2015?

    A: The Mortgage Forgiveness Tax Relief Act of 2015 is a pending bill in the U.S. Congress as of July 2015. It seeks to extend to 2016 a similar law that expired in 2014, so that forgiven mortgage debt on a principal residence is not classified as taxable income.
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  • Q: What are some Texas laws concerning the repossession of vehicles?

    A: A statute called the Texas Business and Commerce Code Section 9.609 says a creditor can use self-help repossession but can only seize collateral if it can be done without a breach of the peace, according to Weber Law Firm, P.C. Getting a court order or filing a lawsuit are other options for creditors.
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  • Q: Where can you find wage garnishment rules for different states?

    A: Wage garnishment rules vary by state and are located at Fair-Debt-Collection.com. All states allow wage garnishment for child support, alimony, taxes and federal student loans, according to Fair-Debt-Collection.com. Links for all 50 states are listed alphabetically and provide quick access to information on individual states.
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  • Q: How does a short sale work with debt forgiveness?

    A: A short sale works when the homeowner sells the home and gives all the proceeds to the lender, the Federal Trade Commission says. The lender then agrees to not foreclose on the home, and the lender forgives the debt repaid by the sale. The amount forgiven is reported as a partial charge off on the former homeowner's credit report, Bankrate notes.
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  • Q: What does it mean to be paying off a judgment?

    A: Paying off a judgment means that a party is making partial payments or payments in full toward a judgment against the party. A judgment is a court order in civil cases that requires one party to pay another.
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  • Q: What is the statutes of limitations on debt collection?

    A: State law sets statutes of limitations for debts, which may vary from state to state, according to the Federal Trade Commission. Some states have several statutes of limitations. The applicable law depends on the type of debt involved.
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  • Has my bankruptcy been discharged?

    Q: Has my bankruptcy been discharged?

    A: The debtor in a bankruptcy case receives a notice of a discharge by mail once the discharge is completed, according to the United States Courts. The timing of the discharge depends on the type of bankruptcy case. Individual chapter 7 bankruptcies are usually discharged four months after the petition is filed with the clerk. Individual chapter 11, 12 and 13 bankruptcy cases are usually discharged after debtor payments are completed.
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  • Q: What is the difference between a Chapter 11 filing and other bankruptcy filings?

    A: Small businesses looking to restructure can use a Chapter 11 bankruptcy, while Chapter 7 bankruptcy requires filers to return assets such as homes or cars to their creditors, FindLaw explains. Chapter 11 bankruptcy is often an alternative to Chapter 13, Nolo reports.
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  • Q: How often can you file Chapter 7?

    A: People may file for Chapter 7 bankruptcy eight years after filing a prior Chapter 7 case or six years after filing a prior Chapter 12 or 13 case, according to Lawyers.com. Chapter 7 bankruptcy is generally used by low-income debtors who have little or no assets.
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  • Q: What is an LVNV Funding lawsuit?

    A: An LVNV Funding lawsuit is a debt collection legal case filed by LVNV Funding, LLC against a debtor. In an LVNV Funding lawsuit, the burden of proof lies with LVNV Funding, LLC to show beyond a reasonable doubt that the accused owes the debt that the company is suing on, notes NahoumLaw.com.
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  • Q: Where do you find some sample letters to a stop collection agency?

    A: Several financial and legal websites offer sample letters to stop a debt collection agency, including RocketLawyer.com and TateEsq.com. These letters illustrate the process of writing a letter to instruct the collection agency to stop contacting the debtor due to one reason or another.
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  • Q: How do you file for bankruptcy online?

    A: Filing for bankruptcy online involves obtaining advice on the filing decision, gathering the necessary information needed for filing bankruptcy, opening an account with the Public Access to Courts Electronic Records system, accessing the account to complete bankruptcy filing forms and checking the account frequently for a court hearing date, according to M. Scilly for the Houston Chronicle. Although it is possible to complete the process yourself, hiring an attorney may help to prevent possible mistakes.
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  • Q: How do you remove a tax lien?

    A: To remove a tax lien, first pay the outstanding lien, and then ask the credit bureaus to expunge the lien from the public records, advises Chron. However, the credit bureaus have the discretion to remove or not to remove the lien from the public records.
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  • Q: What is Chapter 9 bankruptcy?

    A: Chapter 9 bankruptcy is a form of debt reorganization reserved for municipal governments and other local authorities that are unable to meet their obligations and require relief from debts. According to David Haynes for About.com, only subdivisions of a state government are permitted to file for a Chapter 9 reorganization, which prevents its use by individuals, corporations or other entities but permits filing by municipal utilities and other municipal entities.
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  • What are some facts about chapter 11 bankruptcy?

    Q: What are some facts about chapter 11 bankruptcy?

    A: Facts about Chapter 11 bankruptcy include it can be used by small businesses looking to restructure, it can help an individual balance his expenses and income, and there are special provisions that can make the process less expensive, says Nolo. Chapter 11 bankruptcy can be an alternative to Chapter 13.
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  • Q: What is the statute of limitations in Florida on collecting past due accounts?

    A: The statute of limitations for collecting debt in Florida is four years for oral contracts or open-ended accounts. For written contracts or promissory notes, the statute of limitations is five years.
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  • Q: Can you file chapter 7 on tuition owed to a university without student loans?

    A: In most cases, a former student can file chapter 7 bankruptcy on owed expenses to a college that were not part of a student loan. If the student did not ask for a loan or execute a promissory note, the debt remains eligible for discharge in court, explains Nolo.
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