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While it is true there are special requirements to meet in order to get student loan debt discharged in bankruptcy, more debtors are being granted elimination of the debt.  Recent reports have reviewed a number of previous bankruptcy filings by consumers over the last few years that have included student loan debt, and the outcome [...]

The bankruptcy court doesn’t send you mail unless it’s important.
Sometimes creditors just can’t help themselves from running afoul of the bankruptcy laws.
My client owed $78 to her dermatologist.  She had a host of other overdue debts that led her to my office and, after realizing she was over $50,000 in the red she decided to file for bankruptcy.
The Chapter 7 case went smoothly, and she got her discharge about four months after filing.
From there, she went about her business.
Unfortunately, so did the dermatologist.
Collections Ramped Up After The Bankruptcy
After the bankruptcy, the dermatologist continued to send collection letters. My client figured it was a mistake, so she didn’t make a big deal of it.
A few months later, she got served with a lawsuit demanding $575 – $78 for the original bill plus collection costs and finance charges for nonpayment.
This Was A Problem
Under the U.S. Bankruptcy Code, all collection efforts must stop once the case is filed. That’s a temporary solution which is made permanent by the discharge order.
In other words, the collection efforts were illegal. My client didn’t make any noise about it, but once things turned ugly and legal action was commenced, she’d had enough.
By the way, the doctor’s collection agency had been reporting the debt as past due on her credit report as well. Had she checked her reports before the lawsuit was started, she would have known that as well. Also illegal, by the way.
So We Sued The Doctor
When you’ve got a creditor who takes illegal action against you, there’s no real way to protect your rights but to sue. That’s exactly what we did.
As an aside, when we sue for a violation of the bankruptcy court’s discharge order we do so without any upfront fee from our client. Instead, we are compensated at the end of the case by receiving a portion of any money damage award or settlement. So we don’t take these cases lightly – it’s got to have a reasonable chance of success for us to take action.
A Defense Of Stupidity
We served the lawsuit on the doctor, and he didn’t answer it. In fact, it wasn’t until the judge called him into court for contempt did he bother paying attention.
The doctor’s attorneys confirmed that they’d received the bankruptcy court notices but tossed them out. The notices, they thought, somehow didn’t apply to them.
In court, the doctor told the judge he thought his bill wasn’t covered by the bankruptcy because he was outraged that my client would dare to file for bankruptcy in the first place.
As to the reason why he didn’t answer the lawsuit we filed against him?  He claimed that it was a bogus lawsuit that wasn’t worth his time or energy.
This Ended Badly For The Doctor
In ruling in my client’s favor, the judge ordered the doctor to pay the following:

• $10,000 to my client; and
• $10,000 to me for legal fees.

This served to underscore to the doctor that bankruptcy court is not an entity to be ignored.
Your Lesson For The Day
The bankruptcy court is a real place – with real powers.  When you’re told to do something by the court, you do it.
If you disagree, you respond appropriately.
If you ignore the court, you will lose.
Whether you’re filing for bankruptcy or are a creditor in a bankruptcy case, the rules are the same.
Image credit:  K!T
Why You Should Always Read Mail From The Bankruptcy Court was originally published on Consumer Help Central. If you're seeing this message on another site, it has been stolen and is being used without permission. That's illegal, a violation of copyright, and just plain awful.

  Advantages of Bankruptcy As part of our work with clients considering bankruptcy, we want to make sure you understand all of your options. When you are faced with stress and overwhelming debt, bankruptcy can be one option that can quickly end creditor harassment. When you file for bankruptcy, your creditors must stop calling or […]The post Advantages and Disadvantages of Bankruptcy appeared first on Tucson Bankruptcy Attorneys Trezza & Associates.

Take three simple steps and your risk of identity theft plummets.
Identity theft can ruin your financial life, so you do what you can to minimize the risks.
You check your credit report, dispute the errors and keep tabs on your day-to-day finances.
You pore over your credit card statements each month to ferret out anything that looks amiss.
Still, the risks remain.
How about we make it even easier?
What’s In Your Wallet?
You carry a lot in your wallet.
You’ve got your driver’s license, credit cards, and medical insurance card.
You may carry your Social Security card with you.
If you lose your wallet, think of the treasure trove of information someone receives.
Your name, address, date of birth, and Social Security number are all neatly packaged and delivered into the hands of the identity thief.
With that information, a thief can do pretty much as he or she pleases with your credit identity.
If you remove your Social Security card from your wallet, identity theft becomes more difficult.
If you keep your driver license at home or in your car with your vehicle insurance card, your home address disappears from an identity thief’s view.
Cut down the number of credit and debit cards you carry to pare it down even further.
Shred It To Forget It
Look at your garbage bins and consider the wealth of personal information that’s there for the taking. Credit card statements, bank statements, and more are readily available to anyone who grabs a bag of trash.
Buy an inexpensive shredder at your local office supply store and shred it before tossing out those statements.
Never just throw that stuff away.  You never know who is going through your garbage.
Lock It Up
Now take a walk through your home and think about the documents you’ve got in various nooks and cubbyholes, drawers and such. Credit cards, Social Security cards, birth certificates, passports and more are there for the taking.
One break-in and you’re at risk in a big way.
Buy an inexpensive safe, mount it in a safe place, and tuck away your documents and important papers. Best if the safe is fireproof and waterproof just in case the house is damaged by fire or flood.
Lock It Down
Finally, let’s talk about your computer. If you lose your laptop or someone steals your desktop, you’re up the creek.
Passwords, scanned files and emails are ripe for the picking. Couple that with the photos you’ve got on your computer of your smiling face, and all a thief needs to do is search your hard drive.
Consider encrypting your computer’s hard drive and password-protecting the system. It will keep your data – and your identity – safe from prying eyes.
In the end, there’s nothing you can do to guarantee the safety of your identity. But if you take these three simple steps, you’ll reduce your risk significantly.
Image credit:  Dunechaser
Guard Against Identity Theft With These Three Easy Steps was originally published on Consumer Help Central. If you're seeing this message on another site, it has been stolen and is being used without permission. That's illegal, a violation of copyright, and just plain awful.