Finding yourself in a situation of unmanageable credit card debt can be surprisingly easy to do; consider that the average American household that carries a credit card balance owes more than $16,000. Many of these households do not have sufficient savings to cope with the required monthly payments on such balances if something happens to interrupt the source of income from which those payments are made.
How does the bankruptcy "means test" work?
If you are a reader of our blog posts then you likely already know that not only are there two common forms of bankruptcy available to individuals (Chapter 7 and Chapter 13). You may also know that your choice of which form to use may not always be completely within your control; one of the decision factors is whether you qualify for Chapter 7 under what is referred to as the "means test."
Wells Fargo to pay $81.6 million in bankruptcy settlement
Wells Fargo recently agreed to pay $81.6 million in order to settle claims that it failed to send notices to homeowners in bankruptcy about changes in their mortgage payments. The bank reached this settlement after it admitted to violating a federal bankruptcy law.
How does bankruptcy-counseling work?
If you have decided that personal bankruptcy is the right choice for you to get out of that an unmanageable debt situation, before you can discharge your debts under Chapter 7 or arrange a payment plan under Chapter 13 you will need to comply with some additional requirements imposed by the U.S. Bankruptcy Code. These are credit counseling and debtor education.
