Many people do not understand that insolvency is different from bankruptcy. Insolvency means that a person or business is no longer able to pay their bills--it does not imply that legal actions are taking place to relieve existing debts. However, insolvency is often cited as the main reasons that bu
If a borrower stops making loan payments, a creditor may attempt to collect debt by taking money out of his paycheck. A creditor must follow the appropriate procedures before he can garnish a debtor's wages. However, a debtor has a right to challenge the validity of garnishment by submitting a petit
When a debt goes delinquent, the creditor has a number of options for how to collect on the debt. These methods can range from simply calling the debtor and requesting payment to attempting to seize the money through force. Among the most serious methods is to seek the garnishment of the debtor's wa
If you are being hounded by your creditors, if you find your mailbox full of bills that need to be paid or are overdue, if your crushing debt burden is affecting your daily life and you see no way out of it, then the prospect of filing for bankruptcy may seem like the light at the end of the tunnel.
All of this started when you could not control your spending. Several months ago, you were in the mall almost everyday, buying yourself a new pair of sneakers, a brand new appliance or a cute pair of pants. You were always online, looking out for the greatest deal you could get from your favorite on
Though the bankruptcy process is designed to give debtors a "fresh start" by discharging, or erasing, many of their debts, some things cannot be discharged. One of those is criminal judgments. If a criminal court orders you to pay money---to the government in fines or to victims in restitution---you
Bankruptcy is a financially difficult state in ones life. This is especially true if it has never occurred to you that it could actually happen. It becomes worse if you have nobody to advise you on the way forward. This is the reason why it is highly advisable to go for counseling sessions before fi