Consumer Bankruptcy

Image of matchbox car sitting on top of cash representing cash loans from family or other private agreement

Loans Owed to Family Members in Bankruptcy

March 12, 2014

Quite often when people begin experiencing financial problems, they turn to family for personal loans to pay debts or meet basic living expenses. More often than not, loans from family are unsecured meaning that, unlike a home mortgage or car loan, no collateral is involved in the loan. When filing bankruptcy, loans from family members should be included in the debts on the debtor’s bankruptcy schedules. Personal debts owed to family members are not entitled…

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Credit Card Debt and Bankruptcy

February 12, 2014

After the winter holidays, credit card bills start rolling in and consumers see how purchasing a few holiday gifts can add up to a lot of debt. For people who are already struggling to manage their day-to-day expenses, additional credit card debt incurred over the holidays can be a factor in their decision to file bankruptcy. Consumers should be aware that certain credit card debt may not be dischargeable in bankruptcy. Under current (January 2014)…

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Can a creditor seize my bank account to satisfy a debt?

January 20, 2014

In North Carolina, if a creditor sues a debtor to collect money owed, and the court enters a judgment against the debtor, the creditor may take steps to enforce the judgment by placing a lien on the debtor’s property or seizing the debtor’s nonexempt assets. A creditor seeking to enforce a judgment may also attempt to seize funds in bank accounts of the judgment debtor. However, certain funds in a debtor’s bank account may be…

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Can a debt settlement company help reduce my debt?

December 17, 2013

Debt settlement is not the same as debt consolidation. In debt consolidation, your debts are combined so you have fewer creditors to pay each month. Debt settlement is a concept in which a company works on your behalf to negotiate with your creditors for a reduction in your debt. While the concept sounds good in theory, in practice it may not result in significant savings to the debtor. In debt settlement, a debtor must have…

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Can I discharge my student loan debt in bankruptcy?

November 15, 2013

Student loans are a valuable resource that allow some students to attend college who might not otherwise be able to do so. However, in today’s economy, more college graduates are finding themselves unemployed or underemployed and unable to repay their student loan debt. The U. S. Department of Education tracks borrowers who default on their student loans. A recent report found that the default rate on student loans has continued to increase in the last…

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