Cancellation (and Collection) of Debts at the Same Time?

It boggles my mind that banks and other creditors can still collect on debts that they have “cancelled” for tax purposes. You might not know about the “cancellation of debt”, but you can read here about what the IRS says about it. First, I need to explain what this whole concept in tax law actually is. Basically, let’s say that … Read More

How Bankruptcy Improved One Couple’s Credit Rating

A Recent Case Study I wanted to show a recent Chapter 7 case that I filed. This is a married couple with two young children. They owned a home, and were up-to-date with their mortgage. Unfortunately, they had taken out a home equity loan several years ago in an attempt to pay off credit card debt, but despite their best … Read More

10 Big Changes that the Bankruptcy “Reform” Law Brought

Happy 8th Birthday to the Bankruptcy Abuse and Consumer Protection Act, also known as BAPCPA (pronounced “BAP-SEA-P-A”, if you’re interested). Enacted by Congress in 2005, it became effective on October 17, 2005, so virtually every bankruptcy lawyer in Pittsburgh, and for that matter, in America, was working day and night on the week prior to the law change. So, why … Read More

Does My Spouse Have to File Bankruptcy With Me?

No, Your Spouse is Not Required to File Bankruptcy With You This is a common question.  Often, we will have a prospective client who really wants to file bankruptcy and get a fresh start, but his or her spouse is adamant about not filing.   Don’t worry, the spouse is not required to file.   Of course, each case is different and … Read More

My Views on Redeeming a Car Loan while in Chapter 7

Last week, I wrote about the bi-monthly cattle call of Pittsburgh bankruptcy lawyers in Judge Bohm’s courtroom for “Reaffirmation Day”. One commenter from my blog post last week mentioned that I hadn’t talked about vehicle redemption as an alternative to reaffirmation. Simply put, redemption in a Chapter 7 case is a legal strategy to reduce the overall balance on your … Read More