Debt is a familiar reality to many Americans. However, contrary to popular perception, debt is not inherently bad. When people understand how to manage debt responsibly, they can improve their credit score and acquire loans. Responsible debtors have more opportunity when it comes to buying a home or starting a business. Unfortunately, unexpected circumstances can put debtors in a position where they cannot make payments. An injury or a natural disaster, for example, can produce steep expenses, and in these cases, one viable option may be filing bankruptcy.
Although the percentage of U.S. bankruptcy filings experienced a decline in the final quarter of 2014, Illinois remained ranked among the top five leading states with the highest per capita filing rate.
Bankruptcy fraud is a very serious matter. Federal authorities investigate and prosecute this crime very aggressively. So far this year, defendants in fraud cases have been sentenced to more than 30 years in prison and paid over three million dollars in fines and restitution.
Bribing a Trustee
According to a bankruptcy judge in New Jersey, it is time to re-evaluate the way current law deals with student loan debt. In a recent article, Judge Michael B. Kaplan called burgeoning student loan debt a looming crisis that touches every generation of Americans. Although the Bankruptcy Code largely lives up to its purpose of providing debtors with a fresh start, student loans are the notable exception to this rule.
According to a recent survey from Gallup® Politics, six of every 10 Americans polled believe the federal government holds too much power. Over 1,500 adults, age 18 and above in all 50 states and the District of Columbia were surveyed via telephone, and the new statistics were the highest recorded percentage since Gallup® first posed the question in 2010.
For many, the fine line between financial solvency and financial distress is quite thinner than many care to admit. The decline of financial stability often presents the acceptance that bankruptcy may be looming around the next corner.
As Chapter 20 bankruptcy rulings are rounding the circuit court system and gaining momentum, there is one instance where the application of lien stripping second or third property liens may be hitting a snag.
A 47 year-old woman from Laie, Oahu was found guilty in a federal court of bankruptcy fraud. According to the statement issued by the United States Attorney’s Office District of Hawaii, the jury took less than an hour to find Michelle Malufau guilty of making false statements under penalty of perjury and testifying falsely under oath.
The relationship between bankruptcy and taxes is a complicated one. Many families who are facing financial insolvency are not up to date on their taxes, which can inhibit their ability to file for bankruptcy. If you are considering bankruptcy, the most important first step is to seek the counsel of a qualified bankruptcy attorney. The next is to make sure that your tax debts are sorted. “Not all tax debt can be discharged in bankruptcy,” according to Fox Business.