Posts By: Kristen Nardone

Given today’s economy and housing market, it is not surprising that many homeowners no longer view homeownership as the American dream.  Considering the decline in property values, glut of houses on the market, and few buyers qualifying to purchase homes, for many it’s become a nightmare. Often when I am talking with a person struggling… Read more »

If you owe the IRS or Department of Revenue a tax debt, the taxes may be dischargeable in bankruptcy.  Tax debts are complicated, and your bankruptcy attorney will discuss those issues with you.   The answer to “can I get rid of tax debt in bankruptcy” is “maybe.” There are several rules that determine whether a… Read more »

The one court appearance every debtor must attend is their meeting of creditors (also known as a 341 meeting).  While not in a courtroom, the hearing is conducted under oath and held in a meeting room at the bankruptcy court.  The debtor’s bankruptcy attorney will appear with them at their meeting of creditors. It is… Read more »

The bankruptcy trustee steers the bankruptcy process much like the captain of a ship steers the ship. The bankruptcy trustee is a third party appointed by the bankruptcy court to oversee a bankruptcy case.  Trustees are typically bankruptcy attorneys themselves.  The trustee has a responsibility to make sure that a debtor is complying with the… Read more »

Any money held in a 401k or IRA account is an exempt protected asset.  This means that it will be not be affected by a bankruptcy filing and none of the money in an IRA type account can be reached by creditors or the bankruptcy court.  A debtor could have a million dollars in an… Read more »

Who will know if you file bankruptcy?  Has your neighbor filed bankruptcy?  You probably don’t know whether they have or not, and they won’t know if you do. Bankruptcy –  the “B” word – carries a negative stigma.  Many people worry that if they file bankruptcy, everyone will know they are having financial problems.  The… Read more »

If you file bankruptcy, will you ever be able to get credit again?  What will happen to your credit score? A person’s credit score determines whether they are more or less risky to lend money to.  A person with a low credit score is a high risk to lend to, whereas a person with a… Read more »

A judgment is the outcome of a lawsuit where the winning party is awarded a sum of money from the losing party. In the bankruptcy context, a judgment typically results when a creditor sues and wins in court, i.e., Bank of America v. John and Jane Doe. The judgment is the piece of paper that… Read more »

A deficiency arises when a secured creditor sells its collateral and the money from the sell is not enough to pay off the debt in full.  Consider these scenarios: Jane defaulted on her mortgage.  She owed $100,000, and the house was sold for $80,000 at the foreclosure sale.  The $20,000 difference is called a deficiency,… Read more »

The simple answer is that a chapter 7 bankruptcy filing stays on your credit report for 10 years and a chapter 13 for 7 years.  However, the negative effect on your credit score will likely be much shorter. Most people do not have high credit scores when they file bankruptcy.  They have usually fallen behind… Read more »