Bankruptcy Law Blog

A subprime loan is commonly referred to a secured interest loan made to an individual with a credit score of 620 or lower. Interest rates are normally higher on these types of loans in order to offset the riskier lending. In subprime auto loans, serious delinquencies are showing signs of another financial crisis, leading to…

As we enter the last two shopping weeks before Christmas, more and more people are reaching for their credit card, and unintendedly adding to the record level of consumer debt in America. The total household debt in the United States continued its rise last quarter reaching just under $13 trillion dollars total. Additionally, the Federal…

For many of those in extreme debt, Chapter 13 bankruptcy is a shining beacon of hope and relief. Not everyone qualifies, however, for Chapter 13 bankruptcy in California. It’s also noteworthy, that like all decisions, the decision to declare bankruptcy comes with advantages and disadvantages. A Chapter 13 bankruptcy can take up to five years…

Anyone who has been in debt knows that it can be a stressful situation. Consequently, a number of studies have shown an adverse relationship between debt and your physical and mental health. These studies compile data using panel surveys, epidemiological surveys, and psychological autopsy studies and have found a strong relationship between debt and poor…

After Bankruptcy, California is testing a new form of welfare called “universal basic income”. The new universal basic income, or UBI, is initially funded by a tech group called the Economic Security Project, which has put together a multi-million dollar grant to help fund the new privatized welfare. The community engagement initiative will aim at…

Most things in life are “give and take”, and Chapter 7 bankruptcy isn’t much different. It’s true that Chapter 7 bankruptcy can be an enormous lifeline to individuals who are suffering from crippling debt, but it does come at a certain cost. Making the decision to file for Chapter 7 bankruptcy can be very difficult…

An unexpected traffic accident, the sudden onset of a major disease, or an extended hospital stay due to illness or injury are a few of the emergencies that can cause an enormous spike in medical expenses and consequently, push an individual towards seeking bankruptcy protection. A recent study, however, was aimed at finding out just…

Many individuals who are struggling with debt worry they will lose their home if they file for Chapter 7 bankruptcy. Consequently, we hear the “Can I keep my house in Chapter 7 bankruptcy” question quite often. Keeping your property in Chapter 7 bankruptcy depends on how far behind in your mortgage payments you are and…

Bankruptcy attorneys in Sacramento, CA often get asked about the differences between debt consolidation and bankruptcy and which one causes more damage to your credit. A Chapter 7 bankruptcy will remain on your credit for 10 years, and so it does have the potential to affect your credit score significantly. Oppositely, debt consolidation may affect…

When filing bankruptcy, your bankruptcy attorney will explain the filing process which includes filling out a list of creditors and the amount of debt that you owe them. The bankruptcy court will notify your creditors that you have filed bankruptcy and let them know what they need to do in order for the bankruptcy court…