Recent FAQs

Credit card lenders and their debt collectors obtain a large number of judgments each year. By obtaining a credit card judgment, the lender gains the ability to use judicial process to sell the borrower's property or seize money out of bank accounts. The lender with a judgment can attempt to collect for 10 years or more. While credit card judgments themselves are seldom an impediment to bankruptcy, judgments that have become judgment liens required special considerations.

When an individual files chapter 13 bankruptcy, they have decided to voluntarily commit future income for paying certain debts. This type of bankruptcy uses a court approved plan to determine which creditors are paid what, and how much the debtor must pay to the

910 days (about two and a half years) is an important threshold in the life of a car loan for a prospective filer of chapter 13 bankruptcy.

Like other secured loans, a car loan can become underwater or undersecured, where the value of the car is less than the amount owed on the loan. This most often happens when cars are purchased new and depreciate faster than the loan balance is repaid. It also occurs when loans have high interest rates or when the car loses value unusually fast, as is the case of high mileage or an unpopular make and model.

On the powerful protections in a bankruptcy case is the automatic stay. In a typical voluntary bankruptcy, this stay is completely automatic, and goes into effect upon filing the bankruptcy petition without any action from the court.