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 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 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 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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  • What are some tips for filling out a bankruptcy application?

    Q: What are some tips for filling out a bankruptcy application?

    A: Tips for filling out a bankruptcy application include providing extensive proof of income, accurately listing all monthly expenses, and remembering to include expenses the applicant may only pay once or twice a year, according to Nolo. Applicants need to list every asset they own on a bankruptcy application.
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  • Q: Is debt consolidation a good way to save money?

    A: Debt consolidation is a process that allows individuals to combine all their outstanding debts into a single loan, and it is not a good way to save money. By choosing debt consolidation, individuals actually have to pay back a larger amount of money than they initially borrowed.
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  • Q: What are some ways to get federal debt forgiven?

    A: Federal debt can be forgiven in certain circumstances under different categories of forgiveness, discharge and cancellation that include permanent disability (TPD) discharge, death discharge, discharge in bankruptcy, false certification of student eligibility or unauthorized payment discharge, unpaid refund discharge, teacher loan forgiveness, public service loan forgiveness and Perkins loan cancellation and discharge, according to Federal Student Aid. Direct loans, federal family education loan (FFEL) program loans and Perkins loans are all the types of loans that may be dismissed under their appropriate forgiveness categories. Borrowers must contact their loan servicers, or have attended schools for Perkins loans recipients, to see if they qualify.
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  • Q: What is the statute of limitations on judgements?

    A: The statute of limitations for collecting on judgments varies from state to state. While a judgement drops off of a credit report after seven years, the amount of time to collect on that judgment may well exceed seven years.
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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 a certificate of municipal lien?

    A: A certificate of municipal lien is a document that lists all of the money charged to a particular property. This includes any back taxes, water charges and other assessments a municipality may place on a specific property.
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  • Q: How do you find companies that have filed for bankruptcy in the United States?

    A: Individuals can find companies that have filed for bankruptcy in news and investment publications. Stockbrokers provide insights about insolvent entities, while government sources such as bankruptcy courts and the Securities and Exchange Commission provide useful bankruptcy information, reports FreeAdvice.
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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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  • How long does bankruptcy stay on my credit report?

    Q: How long does bankruptcy stay on my credit report?

    A: A bankruptcy may take up to 10 years to fall off of a consumer credit report, according to FICO. During this time period, anyone who performs a credit check can see the consumer's bankruptcy information.
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  • Q: What is the Fair Debt Collection Act?

    A: The Fair Debt Collection Act is a federal law that prohibits debt collectors from using deceptive and unfair practices to collect a debt, explains the Federal Trade Commission. A debt collector is someone who regularly collects debts that are owed by individuals and businesses.
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  • Q: What are the differences between Chapter 13 and Chapter 7 bankruptcy?

    A: Differences between Chapter 13 and Chapter 7 bankruptcy include the income level of people eligible for each type of bankruptcy and the amount of time it takes to file for each, according to FindLaw. Only people whose income does not exceed a certain level can file for Chapter 7 bankruptcy.
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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 do you fill out an insolvency form?

    A: To fill out a form to determine insolvency, access Form 982 and Publication 4681 from the IRS website, and add all appropriate information regarding your forgiven debts and from the 1099-C form received from the creditor that forgave the debt. Enter all requested information in the Publication 4681 worksheet, parts one and two, as per The Law Dictionary instructions.
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  • Q: What are some laws that protect consumers against bill collectors?

    A: On the federal level, the Fair Debt Collection Practices Act protects consumers from certain debt collection practices and sets rules that debt collectors must follow, notes the Federal Trade Commission. Several states have their own debt collection laws, such as the Illinois Collection Agency Act, which requires debt collectors to have licenses, and sets rules about how they communicate with debtors, states Nolo.
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  • Q: What did the Debt Forgiveness Act extend to 2014?

    A: The Mortgage Forgiveness Debt Relief Act extended tax breaks for cancelled mortgage debt through Dec. 31, 2014, according to the Washington Post. The Act, which began in 2007, previously had been set to expire at the end of 2013.
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  • Q: What information goes on a lien-release letter?

    A: A lien-release letter must contain identifying information including date of the lien, name of lienholder, and property owner. In addition, it should include a legal description of the property, consideration for the release, signature and a disclaimer, according to the FDIC.
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  • Q: What is a Georgia electronic data interchange payment?

    A: A Georgia electronic data interchange payment is a payment the state or its agent sends or receives electronically using a computer software system, states Blue Cross and Blue Shield of Georgia. The Georgia Department of Revenue has mandated use of the EDI system, notes its website.
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