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Divorce and Bankruptcy, Divorce Decree Does Not Affect Liability to Bank!

On May 22, 2011 By

Question:

My divorce was recently finalized; am I responsible for all debt that my ex-husband was awarded after he files for bankruptcy?

Answer:

I assume what you mean is that in the divorce decree, the Family Court ordered your husband to pay certain marital debts? The problem you encounter is common, unfortunately. The divorce [...]

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Can You Protect A Cosigner Through Bankruptcy?

On April 21, 2011 By

Let’s set the stage. To help his grown daughter establish credit and buy a vehicle, Don Debtor cosigns a vehicle loan for his daughter, Dawn? By cosigning, Don has made himself contractually obligated to pay the car loan in the event his daughter, Dawn, is unable to do so. Cosigners are jointly and fully liable [...]

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What Happens to Cosigners When the Primary Borrower Files Bankruptcy?

On April 20, 2011 By

Let’s set the stage. To help his grown daughter establish credit and buy a vehicle, Don Debtor cosigns a vehicle loan for his daughter, Dawn? By cosigning, Don has made himself contractually obligated to pay the car loan in the event his daughter, Dawn, is unable to do so. Cosigners are jointly and fully liable [...]

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What Happens to Authorized Users When the Borrower Files Bankruptcy?

On April 19, 2011 By

Let’s set the stage: To help his daughter establish credit, Don Debtor makes his daughter Dawn an authorized user on his Citibank credit card. An authorized user is simply that, someone that the borrower or account holder authorizes to use the credit card. However, authorized users are not contractually obligated to repay the debt to [...]

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Three Things to Know About the New Credit Card Rules

On April 21, 2010 By

If you’re like most Americans, you’re just now realizing you may be impacted by the Credit Card Accountability Responsibility and Disclosure Act of 2009. The CARD Act has, in fact, changed the way credit card companies do business, at least for the foreseeable future. So that you’re equipped to use credit responsibly, we’ve taken the [...]

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Can I File Bankruptcy if I Have Been Using My Credit Cards for Basic Living Expenses?

On August 4, 2009 By

Question

I have been using my credit cards to cover our family’s food, gas and general living expenses, outside of bills, for some time now.  My husband and I have decided that I need to file for bankruptcy.  Our accounts are separate and the debt is in my name only.

We have made up our [...]

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Should I Stop Paying On Credit Cards Prior To Filing Bankruptcy?

On April 18, 2009 By

I have been meaning to write on this topic but Jonathan Ginsburg over at the Bankruptcy Law Network recently wrote a similar piece. Although I mostly agree with Jonathon’s points, I think some additional clarification is in order.

As with any practical advice surrounding bankruptcy, the answer to [...]

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What’s More Important, Your Credit Score or A Roof Over Your Head and Food on the Table?

On April 3, 2009 By

I am often struck by the lengths people go to protect their credit score (devastating and liquidating savings and retirement funds); certainly your credit score is important, but your score is by no means the end all be all of your financial life.

Or perhaps, as someone pointed out to me, your credit score may [...]

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Self-fulfilling Prophecy of the Pending Credit Card Crunch.

On March 31, 2009 By

A recent article made the observation that the steps credit card companies are taking to tighten their financial waistlines may increase default rates. These actions include increasing interest rates and lowering available credit. Historically, when a person misses a credit card payment, the credit card will usually lower the available credit to [...]

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