Debts

What is Unsecured Debt?

Written by Attorney Andrea Wimmer. 
Updated July 28, 2023

Unsecured debt is not tied to any property (collateral) and includes credit cards and medical debt. Chapter 7 and Chapter 13 cases eliminate most unsecured debts.

How Will Bankruptcy Affect My Credit?

Written by Attorney Andrea Wimmer. 
Updated November 28, 2021

Filing bankruptcy does not ruin your credit forever! If you need debt relief but are worried about how a bankruptcy affects your credit rating, this article is for you.

What Is Debt and How Should I Handle It?

Written by Attorney Andrea Wimmer. 
Updated April 18, 2024

Debt is a result of borrowing money that has to be paid back over a period of time. Lending institutions, like banks, will lend you money so you can make a purchase. In turn they expect you to pay them back, with interest. Debt can be classified in two broad categories: corporate debt and personal debt, which is also called consumer debt. Corporate debt involves loans between businesses and, generally speaking, has little to no impact on personal debt. This article will explain the most common types of consumer (personal) debt and how to handle it.

Should I File for Bankruptcy for Credit Card Debt?

Written by the Upsolve Team. Legally reviewed by Jonathan Petts
Updated November 7, 2024

If you're overwhelmed by credit card debt, filing for bankruptcy may be a way to erase it and get a fresh financial start. Many people consider options like credit counseling or debt management first, but bankruptcy can be a powerful solution when other methods aren't enough. This article will help you understand if bankruptcy is the right choice for dealing with your credit card debt.

Filing Bankruptcy to Deal With Your Student Loan Debt? Here Are 3 Things You Should Know!

Written by Attorney Kassandra Kuehl. 
Updated June 9, 2023

You CAN discharge student loans in bankruptcy, but you’ll have to do a little extra work by filing an adversary proceeding, and you need to meet eligibility requirements. It’s gotten a little easier in recent months for federal student loan borrowers to discharge their student debt in Chapter 7 bankruptcy. This article explores three key things to know if you want to file for bankruptcy to erase your student loan debt.

What Is Secured Debt?

Written by Attorney Andrea Wimmer. 
Updated July 26, 2023

Secured debt is connected to a piece of property that the bank can take back if there's a payment default. The most common type of secured debt are car loans.

Should I List My Student Loans Even if They Can't Be Erased?

Written by Kristin Turner, Harvard Law Grad. 
Updated September 15, 2021

Yes. You should include all your debts on your bankruptcy forms, even if some cannot be erased. 

Should I File For Bankruptcy or Try Debt Relief?

Written by Jonathan Petts. 
Updated August 21, 2024

When you’re trying to figure out the best debt relief option, first consider how much debt you have, whether you want to call in outside help or support, how quickly you’re hoping to repay the debt, and how important your credit score is to you right now. You have several debt-relief strategies available to you, and each has its pros and cons.

What To Do If You Don’t Remember Everyone You Owe Money?

Written by Jonathan Petts. 
Updated November 21, 2020

If you're overwhelmed by debt collectors and collection agencies calling you to collect a debt, it can seem as though you'll never be able to remember who they all are. But, it's important to give the bankruptcy court a list of all of your creditors, so here are some steps you can take to make sure you didn't miss anyone.

How to Get a Free Bankruptcy Consultation in New York?

Written by Kristin Turner, Harvard Law Grad. 
Updated August 8, 2023

How to find a free Chapter 7 bankruptcy consultation in New York City. A bankruptcy attorney will help you decide between Chapter 7 and Chapter 13.

How Can I Find a Free Bankruptcy Lawyer in New York City?

Written by Kristin Turner, Harvard Law Grad. 
Updated April 10, 2023

If you're looking for an affordable bankruptcy lawyer, look no further. Upsolve is a nonprofit that helps low-income Americans get the fresh start they need through Chapter 7 bankruptcy. We'll also help you look at other resources for affordable bankruptcy lawyers.

Your Guide To Rebuilding Credit After Bankruptcy

Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated April 18, 2024

A bankruptcy does not destroy your credit forever. Instead, following some simple tricks and taking advantage of the various credit repair tools can help you build a stronger credit report and higher credit score after filing for bankruptcy.

Legal Aid Bankruptcy Resources in New York City

Written by Jonathan Petts. 
Updated April 10, 2023

Legal aid nonprofits provide free assistance to people who can't afford a bankruptcy attorney. See if there's a legal aid nonprofit in New York City that can help you.

How To Find a Bankruptcy Attorney Near Me

Written by Jonathan Petts. 
Updated August 19, 2024

Tips for finding a bankruptcy attorney.

How Do I Find an Affordable Bankruptcy Attorney?

Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated August 20, 2024

While you don’t have to hire a lawyer to file a bankruptcy case, you may want legal assistance. If so, there are several resources you can use to find an affordable bankruptcy attorney, including your state bar association’s website, the National Association of Consumer Bankruptcy Attorneys, or a local legal aid organization. Many bankruptcy lawyers also offer a free consultation for prospective clients. You can get free legal advice during the consultation and learn more about the lawyer’s fees and options for paying them.

Can I Get Rid of my Medical Bills in Bankruptcy?

Written by Attorney Andrea Wimmer. 
Updated July 20, 2023

Medical debt and loss of income for medical reasons plays a role in more than 60% of personal bankruptcy filings. If you’re struggling to make ends meet while dealing with medical bills, bankruptcy can provide relief.

What is a Debt Collection Attorney?

Written by Jonathan Petts. 
Updated April 20, 2023

A debt collection attorney is a type of attorney who specializes in debt collection. They can represent either creditors or borrowers, so it is smart to find a debt collection attorney who specializes in a practice area specific to your type of case. While a debt collection attorney cannot make your debt disappear, they can help you navigate the debt collection process and protect your legal rights. Keep in mind, though, that hiring a lawyer will be an additional cost to you.

What Debts Can't You Get Rid of in Bankruptcy?

Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated August 20, 2024

Though bankruptcy provides real debt relief for folks who are struggling to make ends meet, not every debt is treated equally under bankruptcy law. Bankruptcy is a great way to get rid of credit card debt, medical bills, and personal and payday loans. But bankruptcy can’t wipe out recent income tax you owe, alimony, child support, or debt incurred from illegal acts (embezzlement, larceny, etc.) Though there’s a common misconception that student loan debt can’t be erased in bankruptcy, you can discharge, or wipe out, your student loan debt in Chapter 7 or Chapter 13 bankruptcy. You must prove that repaying it is causing undue hardship and that you’ve made good faith efforts to pay in the past.

Debt Consolidation – 5 Things You Should Know

Written by Jonathan Petts. Legally reviewed by Attorney Andrea Wimmer
Updated April 19, 2024

Debt consolidation does not erase debt, but it can be helpful in reducing your interest rate on debt you owe.

Debt Relief Programs and Financial Resources for Veterans

Written by Attorney Jenni Klock Morel. 
Updated April 19, 2024

There are many debt-relief programs and resources for veterans and active-duty service members alike. Some focus on helping military personnel with homeownership while others focus on managing your finances and debts. It’s especially important for active-duty military members to keep their finances in order. This will help you get or maintain security clearances. This article covers the most common debt relief programs and financial resources for veterans and active-duty service members.

On My Bankruptcy Forms, Should I List Debts That Appear on My Credit Report but I Don't Owe?

Written by Jonathan Petts. 
Updated September 4, 2021

You should list debts on your bankruptcy forms that are on your credit report even if you don't think you owe them.

What Are Bankruptcy-Friendly Credit Cards?

Written by Lawyer John Coble. 
Updated August 20, 2024

It’s important to rebuild your credit after a bankruptcy. The good news is that you’ll get plenty of offers for credit after your bankruptcy discharge. The bad news is that some of those offers won’t be great, with high interest rates or hidden fees. If you want to rebuild your credit, you need to find the right card to work for you. Read on to learn about some of your options.

What Is an Automatic Stay In Bankruptcy?

Written by the Upsolve Team. Legally reviewed by Jonathan Petts
Updated October 23, 2024

An automatic stay is a powerful protection that kicks in as soon as you file for bankruptcy. It stops most creditors from trying to collect debts. This means they can't call you, send letters, garnish your wages, or start or continue lawsuits against you. The protection lasts until your Chapter 7 bankruptcy case ends or the court lifts the stay.

Will Chapter 7 Bankruptcy Lower My Credit Score?

Written by Jonathan Petts. 
Updated August 1, 2023

Most people who have low credit scores and file for bankruptcy actually see their credit scores improve.

Will Filing for Bankruptcy Stop a Levy?

Written by Jonathan Petts. 
Updated June 30, 2023

Filing bankruptcy can stop a bank levy. When you file bankruptcy, you get the protection of the automatic stay. Under the automatic stay, creditors can't try to collect from you in any way, including a bank levy. Other ways to stop a bank levy include: - Paying the debt (if possible - Negotiating a payment agreement with the creditor - Alleging that the credit made a legal error in the process to obtain permission to levy your account - Alleging that the statute of limitations to collect the debt has expired - Alleging that the funds in the account are protected from levy

Should I list the original credit card, or the debt collection agency?

Written by Jonathan Petts. 
Updated July 22, 2020

When you're listing the companies that you owe money to, you should list current owner of the debt. So if a debt collection agency bought your debt from the original credit card you owe money to, you should list the debt collection agency. 

I Just Took Out Payday Loans. Should I Wait 90 Days To File Bankruptcy?

Written by Jonathan Petts. 
Updated April 19, 2022

It's a good idea to wait at least 90 days to file after taking out payday loans or making any substantial purchases. This is because these types of transactions can make a trustee or judge suspicious and less likely to approve your bankruptcy. It looks like you're "cheating" — wracking up debt knowing that you could just get rid of it in bankruptcy right after.

What Does It Mean To Be Judgment Proof?

Written by Jonathan Petts. 
Updated April 19, 2024

Being judgment proof means that you do not have anything for a creditor to collect if they sue you and win. As you can imagine, this means that they are not likely to sue you. It does not mean that they can't sue you, just that they probably won't be able to collect if they do decide to take you to court.

What Happens to the Automatic Stay if My Bankruptcy Case Is Dismissed?

Written by Curtis Lee, JD. 
Updated July 27, 2023

If your bankruptcy case gets dismissed, your debts won’t be discharged and the automatic stay goes away. Without the protection of the automatic stay, debt collectors and creditors can resume collection activities. If your case is dismissed, you can file a new case or file a motion to reinstate your previous case. If this happens, there may be limits to the automatic stay.

What if I Paid Someone Back in the Year Before Bankruptcy?

Written by Jonathan Petts. 
Updated August 24, 2021

If you're filing for bankruptcy, you probably owe many debts. If you repay some of those debts but not others in the year before bankruptcy, the trustee in your bankruptcy case may try to recollect some portion to redistribute the repayment more evenly across all your creditors.

Already Filed Bankruptcy Then Sued By a Creditor? Do This

Written by Attorney Andrea Wimmer. 
Updated July 27, 2023

If you're being sued by a creditor for an unpaid debt but you're in the process of filing bankruptcy, you may be wondering if you need to show up to your court date for the creditor's lawsuit against you. It will depend on when your court date is and where you're at in the process of filing your bankruptcy case.  If you haven't filed your bankruptcy case by the court date for your creditor's lawsuit against you, make sure you attend the hearing. Otherwise, the judge can potentially grant a default judgment against you simply because you didn’t show up. If you have filed your bankruptcy case, it's still a good idea to show up to the hearing to let the judge know. Or you can contact the court clerk prior to the court date to let them know and see what they advise.

Should I Make a Last Payment on My Credit Card Before I File Bankruptcy?

Written by Jonathan Petts. 
Updated September 15, 2021

If you plan to file bankruptcy soon, making one last credit card payment won't hurt your case, but it also won't help it.

Will My Utility Company Take My Deposit When I File Bankruptcy?

Written by Upsolve Team. 
Updated November 11, 2021

Your utility company might keep your security deposit when you file bankruptcy. The company is allowed to keep any security deposit that you paid them before bankruptcy. It's also allowed to charge you a reasonable security deposit for future services after you file.

A Creditor Is Suing Me. What Should I Do?

Written by Kristin Turner, Harvard Law Grad. 
Updated August 27, 2021

When you file your bankruptcy paperwork, you will need to mention any lawsuits creditors have brought against you.

Will My Landlord Be Notified That I Filed for Bankruptcy?

Written by Kristin Turner, Harvard Law Grad. Legally reviewed by Attorney Andrea Wimmer
Updated September 15, 2021

Your landlord will be notified when you file for bankruptcy if you're on a lease. If you are on a month-to-month rental agreement, then the landlord won't be notified that you filed. 

If I file for bankruptcy, will it hurt my co-signer’s credit score?

Written by Kristin Turner, Harvard Law Grad. Legally reviewed by Attorney Andrea Wimmer
Updated October 30, 2021

No. A co-signer’s social security number will not be involved, and the bankruptcy does not go on their credit.

What Is Community Debt?

Written by Kristin Turner, Harvard Law Grad. 
Updated July 2, 2022

Community debt is any debt that you or your spouse incur while married or any debt for which you and your spouse are co-signers. There are 10 community property states where spouses or legal partners may have community debt. This article outlines the 10 community property states and how having community debt may affect your bankruptcy filing.

Do I Need To List All of My Creditors?

Written by Jonathan Petts. 
Updated April 19, 2022

You should do your best to list all of the companies you owe money to on your bankruptcy forms.

If a Creditor Was Charged Off, Do I Still Need To List Them?

Written by Kristin Turner, Harvard Law Grad. 
Updated April 19, 2022

Just because a creditor has charged off a debt doesn't mean that you don’t owe it anymore. That's why you'll still need to list the creditor on your bankruptcy forms. Having a debt charged off only means that the creditor has decided the debt is uncollectible for accounting purposes.

How Do You Answer a Summons for Debt Without an Attorney?

Written by Jonathan Petts. 
Updated August 21, 2024

If you receive a summons and complaint from a debt collector or creditor, it means you’re being sued for unpaid debt. It’s important to respond to (or answer) the lawsuit. You do this by filing official paperwork with the court. Be sure to address every point in the complaint, raise any defenses you have, and file the paperwork within the time frame provided. Debt collectors are counting on you not to answer the lawsuit so that they can win by default. Don’t be intimidated! Take control and learn how to file an answer by reading this guide. You do not need an attorney to answer a debt collection lawsuit successfully.

If I Have a Debt That's Not Dischargeable, Should I Still List It?

Written by Kristin Turner, Harvard Law Grad. 
Updated April 19, 2022

Yes. You must list every debt you have on your forms. The court needs to know about all of them. 

I Don’t Have the Names of My Doctors. Is That Okay?

Written by Kristin Turner, Harvard Law Grad. 
Updated April 19, 2022

Yes, that's fine. Just do your best when you write down the names, addresses, and amounts owed to your creditors. If possible, please Google around to find info you don't know off the top of your head.  

What are the alternatives to Chapter 7 bankruptcy?

Written by Attorney Andrea Wimmer. 
Updated April 19, 2024

Bankruptcy is not right for everyone or every situation. If you're not sure whether bankruptcy is right for you, knowing what alternatives are available to give you some relief from your debts is a critical part of making the right decision for you and your family. Let's take a look at some of the most common bankruptcy alternatives.

What if I Can’t Afford To Pay a Judgment Against Me?

Written by Attorney Andrea Wimmer. 
Updated July 17, 2023

If a creditor or debt collector has sued you and gotten a court judgement against you, you have three main options: 1. You can pay the debt. You may be able to negotiate a voluntary payment plan with the debt collector. 2. You can file to have the judgment vacated or removed. 3. You can file bankruptcy to discharge the debt and stop all collection efforts, including those related to a court judgment.

How Can I Get Free Legal Aid Help To File Bankruptcy?

Written by the Upsolve Team. Legally reviewed by Attorney Paige Hooper
Updated November 21, 2024

Legal advice can be very helpful as you navigate the bankruptcy process, but not everyone can afford to hire an attorney to help them. That's where legal aid comes in. Legal aid organizations offer free or low-cost legal help to certain individuals. Eligibility is often based on income, but sometimes age, veteran status, or other factors come into play as well. This article will describe what legal aid is, how to find out if you qualify, and what it's like to work with a legal aid organization.

Can Bankruptcy Help With Payday Loans?

Written by Jonathan Petts. 
Updated April 19, 2022

In some cases, bankruptcy can help borrowers who have payday loans they can't repay. Filing for Chapter 7 bankruptcy triggers an automatic stay, which prevents the payday loan company from trying to collect the debt. If the debt is later discharged, you are no longer obligated to pay it back.

What Goes Into a Credit Score?

Written by Kristin Turner, Harvard Law Grad. 
Updated April 19, 2024

Your credit score is determined by several factors, including payment history, how much of your credit you're using, what types of credit you have, how long your credit history is, and how much new credit you've applied for recently. Your score helps lenders understand how well you manage credit as a borrower. You can proactively work to improve your credit score and build a strong financial future.

How Much Debt Do I Need To File for Chapter 7 Bankruptcy?

Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated August 9, 2023

Bankruptcy laws don't specify a minimum debt requirement to file Chapter 7 bankruptcy. As long as you qualify to file and meet all the requirements, you can file Chapter 7 and have your dischargeable debts wiped away.

Can Bankruptcy Stop Eviction?

Written by Curtis Lee, JD. 
Updated May 11, 2022

An automatic stay goes into effect as soon as you file bankruptcy. This temporarily stops all debt collection activity, including eviction actions, as long as the landlord hasn’t already received a judgment in their favor. The automatic stay isn’t a permanent solution, though. It’s only a temporary measure that may buy you some time to deal with the eviction or find other housing.

Can I Leave Debts Out of My Bankruptcy?

Written by Attorney Paige Hooper. 
Updated August 8, 2023

You need to list all your assets and debts when you file your bankruptcy. Leaving debts out of your bankruptcy filing will mess up your income and expense calculations. It can also be grounds for criminal charges for bankruptcy fraud.

Can filing bankruptcy stop a debt collection lawsuit against me?

Written by Attorney Eva Bacevice. 
Updated July 28, 2023

In most cases, yes. In fact, facing a possible judgment or receiving one in a debt collection case is often why you might decide to file for bankruptcy. A debt collection lawsuit is a civil lawsuit (not criminal). These most often occur if a creditor has filed a suit against you for non-payment of a debt which may lead to the creditor garnishing your paycheck.

What Is a Bankruptcy Discharge?

Written by Attorney Andrea Wimmer. 
Updated September 29, 2023

A discharge order that tells your creditors they are forever prohibited from asking you to pay your pre-bankruptcy debts ever again.

How Does Bankruptcy Affect a Car Lease?

Written by Attorney Paige Hooper. 
Updated July 20, 2023

A car lease isn’t the same as a car loan. A lease is a contract to use a car for a period of time. It’s not considered a debt when you file bankruptcy. If you have a car lease and file Chapter 7, you can continue with the lease if your payments are current. Otherwise, you can give the car back and walk away from the lease. If you file Chapter 13, you’ll have more options for keeping the car, which we’ll explore in this article.

Why you should not include credit card or personal loan debt payments in Schedule J (Expenses)

Written by Attorney Karra Kingston. 
Updated August 15, 2023

Since Schedule J is essentially a budget for life after bankruptcy and since you will not continue to pay your debts after filing for bankruptcy, don’t list your monthly credit card payments etc. on your Schedule J. Anything that gets discharged in your case, that you won’t continue to pay for should be left off your Schedule J.

How To Get Your Credit Report For Free

Written by Attorney Tina Tran. 
Updated April 19, 2024

Your credit report has a lot of power over your daily life - whether that's when you go to get a new car or are applying for an apartment. In addition to using credit responsibly, keeping an eye on your credit report is one of the most valuable things you can do to make sure your financial house is as stable as possible. There are three ways to request a copy of your free credit report.

Should I Keep Paying My Credit Cards if I’m Going To File Bankruptcy?

Written by Attorney Paige Hooper. 
Updated October 28, 2024

If you're planning to file for bankruptcy, you usually don't need to keep paying your credit cards. In Chapter 7, credit card debt is typically wiped out, so making payments may not make sense. In Chapter 13, your debt will be included in a repayment plan, so you can stop paying and focus on that instead. Chapter 7 and Chapter 13 have different goals and benefits, so knowing which type of bankruptcy you're filing will help you decide what to do.

What Is a Debt Management Plan?

Written by the Upsolve Team. Legally reviewed by Attorney Paige Hooper
Updated August 1, 2024

A debt management plan allows you to combine your debts and make one monthly payment with a lower interest rate. It's set up by a credit counselor and usually takes 3-5 years to complete. Only certain kinds of debt, such as credit card debt, can be included in a DMP. If you have a lot of debt that's secured by collateral (like a house or car loan), a DMP may not be the best option. But you can look into other debt relief options including filing Chapter 13 bankruptcy.

What Is Debt Settlement?

Written by the Upsolve Team. Legally reviewed by Attorney Paige Hooper
Updated August 1, 2024

Debt settlement is a type of debt relief. If a creditor agrees to a debt settlement, you make a lump-sum payment for less than the total debt you owe and they forgive the rest. This can work well if you have a large sum of cash at hand. But many who've fallen behind on paying their debts don’t. If you try to save up money to settle a debt, you'll hurt your credit in the meantime if you stop making your debt payments.

What Is Credit Counseling?

Written by Attorney Tina Tran. 
Updated August 1, 2024

Credit counseling is a great starting point for people who need help figuring out the best way to deal with their debt. Nonprofit credit counselors review your income and debt and help you develop a personalized plan to repay your debts. They’ll go over several potential debt relief solutions, including budgeting, starting a debt management plan, consolidating your debt, or filing bankruptcy.

What Is Debt Consolidation?

Written by the Upsolve Team. Legally reviewed by Attorney Paige Hooper
Updated August 1, 2024

Debt consolidation is when you combine multiple debts into one. The goal of consolidating your debt is to reduce your monthly payment and get a lower interest rate. It also simplifies your debt repayment, so you're less likely to miss payments each month. Debt consolidation loans and credit card balance transfers are two common types of debt consolidation.

What Is Post-Petition Debt?

Written by the Upsolve Team. 
Updated March 29, 2022

Debt you acquire after you file your bankruptcy petition is called post-petition debt. Post-petition debt won't be discharged in your bankruptcy. But post-petition debt isn't the same as debt you forgot to include on your bankruptcy forms.

Can Social Security Overpayments be Discharged in Bankruptcy?

Written by Attorney Andrea Wimmer. 
Updated September 13, 2022

If you owe money to the government due to an overpayment of social security benefits, you may be concerned about whether you’ll be able to eliminate this debt as part of a Chapter 7 bankruptcy. Keep reading to learn how to make sure you are able to discharge your debt for this overpayment.

What To Do If A Creditor’s Address Changed After Filing

Written by Attorney Andrea Wimmer. 
Updated September 4, 2020

If you notice that your creditor’s address has changed on a document/letter they sent to you regarding your bankruptcy, it’s likely that they’ve already provided their new/updated address to the court.

Can I File Bankruptcy if I’m in a Debt Relief Program?

Written by Jonathan Petts. 
Updated August 1, 2024

Yes, you can file bankruptcy even if you’re in or were in a debt relief program such as a debt management plan. Once you file your bankruptcy case with the court, you can stop making the payments under the debt relief plan you’re in (if you haven’t already). Once the bankruptcy court grants your discharge, you won’t have to worry about repaying the debts included in your case. Many people can benefit from other debt-relief options before filing bankruptcy, but sometimes bankruptcy is the best choice to meet your financial goals and take control of your debt.

Cash Advances and Bankruptcy

Written by Attorney Andrea Wimmer. 
Updated July 22, 2020

A cash advance is exactly what it sounds like. Someone gives you cash, you pay it back. There are a variety of different forms of cash advances, but they all have this in common. You get cash in a certain amount. You pay it back with interest.  Getting a cash advance right before filing bankruptcy is a big red flag for a couple of reasons. This article explains how.

Debt Consolidation vs. Bankruptcy – Which Is Better?

Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated October 30, 2021

Almost anyone who is experiencing difficulty paying their bills and considering filing for bankruptcy will come across advertisements or solicitations for something known as debt consolidation. This article will discuss the difference between debt consolidation and bankruptcy and give you some help in deciding which is better for you.

Can Attorney Fees Be Included in Bankruptcy?

Written by Your Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated July 27, 2023

If you owe attorney fees when you go to file your bankruptcy case, most will be treated as unsecured debt and discharged as part of your bankruptcy case. There are some exceptions to this, especially for attorney fees related to family court matters. Keep reading to learn more about how attorney fees are treated in bankruptcy.

Can I keep using my credit cards until I file bankruptcy?

Written by Attorney Andrea Wimmer. 
Updated September 4, 2020

Once you’ve decided that you’ll be filing bankruptcy to deal with your debt, you should not continue to incur new debt. That includes making new charges on your credit card, or getting a new loan. 

Store Cards and Bankruptcy

Written by Attorney Andrea Wimmer. 
Updated July 22, 2020

Issuing credit cards to their customers is a favorite and quite effective marketing technique used by many retail stores. It makes the customer feel special and come back to take advantage of the “deals” only available to card holders. Common examples include Best Buy, Kohl’s and Apple credit cards. This article explores how store credit cards are treated in a Chapter 7 bankruptcy.

How To Pay Off Credit Card Debt When You Have No Money

Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated June 10, 2024

Common advice for getting out of credit card debt, like tightening your budget and repaying high-interest accounts first, only works if you actually have extra cash to put toward your credit card debt. What are you supposed to do if you don’t have money to put toward your debt? Read this article to learn more about alternative methods for paying down credit card debt, including debt consolidation, debt management programs, and debt settlement.

When to Declare Bankruptcy

Written by Lawyer John Coble. 
Updated July 28, 2023

You have many options for debt relief. There are debt settlements, debt management plans, debt consolidations, and bankruptcy. Each option has pros and cons. The best choice for you will depend on your particular situation. Whether you should file bankruptcy and what type of bankruptcy to file is unique to your situation. Everyone's financial situation is different.

Receiving Credit and Other Offers After Filing Chapter 7 Bankruptcy

Written by Attorney Alexander Hernandez. 
Updated July 22, 2020

Court cases and documents filed in court are part of the public record. The same holds true for bankruptcy cases. As a result, companies searching the court records will know that you filed for bankruptcy and will start sending you advertisements in the mail offering you their services, including offers to apply for credit. However, before you accept that offer for a new credit card or car loan, continue reading to learn what you need to consider and what your best options are.

City of Chicago’s “Fresh Start” Parking Ticket Debt Payment Plan Program

Written by Attorney Tina Tran. 
Updated July 26, 2023

Within the past few years, investigative reporters from ProPublica have uncovered the disparate effects of Chicago’s parking and red-light ticketing system on low-income communities of color. Under a new Illinois ordinance, people filing Chapter 7 bankruptcy could erase their ticket debt if they met certain qualifications.Read on to learn more.

Navigating Bankruptcy: Understanding Which Debts Can't Be Discharged

Written by Attorney Jenni Klock Morel. 
Updated May 11, 2023

Though bankruptcy provides real debt relief for folks who are struggling to make ends meet, not every debt is treated equally under bankruptcy law. Bankruptcy is a great way to get rid of credit card debt, medical bills, and personal and payday loans. But bankruptcy can’t wipe out recent income tax you owe, alimony, child support, or debt incurred from illegal acts (embezzlement, larceny, etc.) Though there’s a common misconception that student loan debt can’t be erased in bankruptcy, you can discharge, or wipe out, your student loan debt in Chapter 7 or Chapter 13 bankruptcy. You must prove that repaying it is causing undue hardship and that you’ve made good faith efforts to pay in the past.

What are preferential payments in bankruptcy?

Written by Attorney Amelia Niemi. 
Updated August 10, 2023

This article will explore what constitutes a preferential payment and why it matters to you if you’re thinking about filing a Chapter 7 bankruptcy.

What are Priority Unsecured Debts?

Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated August 8, 2023

We usually hear debts divided into two categories: secured and unsecured. A debt is secured if the lender has a security interest in some property and can take that property if you don’t pay. But, in bankruptcy, there are other important distinctions. Some unsecured debts get special treatment. In this article, we’ll explain the different types of unsecured debt, and what it means when a debt has priority.

What happens if your debt goes to a collections company?

Written by Attorney Amelia Niemi. 
Updated April 19, 2024

Most of us have a pile of “to-dos” that never seem to be done. For many people, this includes a stack of bills and debts that just keep getting higher. As much as you’d love to pay off that medical debt, there’s never quite enough to go around on payday. Having this debt hang over your head can be really stressful. A lot of people sit up at night, worrying about what will happen next to their debt. Read more to find out what debt collectors can – and can’t – do, how they might legally be able to claim that money, and how this might affect your credit history.

What Is a Lien and How Does It Affect My Property?

Written by Lawyer John Coble. 
Updated November 28, 2021

A lien is a property right held by a creditor to secure the creditor’s right to payment from the borrower. Once the creditor is paid in full, the lien is released and the borrower owns the property free and clear. This article will provide an overview of the different types of liens, how they arise, and provide some guidance and additional resources on how to deal with liens in a Chapter 7 bankruptcy.

When Should You File for Bankruptcy?

Written by Amy Carst. Legally reviewed by Attorney Andrea Wimmer
Updated August 8, 2023

Millions of Americans feel overwhelmed by debt, but that doesn’t mean all of them should file bankruptcy. There are multiple paths to debt relief, depending on your unique circumstances. Bankruptcy is only one. However, when other possible solutions, such as debt settlement and debt consolidation fall short, bankruptcy may be the most effective way to discharge debt and get the fresh start you need. Read on for more information about the different types of bankruptcy, and how to determine if filing might be right for you.

Am I Responsible for My Spouse’s Debt?

Written by Attorney Paige Hooper. 
Updated March 10, 2022

Whether or not you’re responsible for your spouse’s debt depends on what state you live in. If you live in a non-community property state, you’re only responsible for debt in your name and debt you’ve co-signed on. If you live in one of nine community property states (or Puerto Rico), you are responsible for your spouse's debt regardless of whose name is on it. There are some exceptions though, which we’ll explain in this article.

How To Find Out What Debt Collectors You Owe

Written by Attorney Amelia Niemi. 
Updated August 18, 2023

If it feels like you’re drowning in a sea of debt, it can seem impossible to find a life raft, especially if the debt collectors have already started circling. Getting a handle on who you owe and how much money you owe them is an important first step in sorting out your personal finances. This article will give you some tips and tools you can use to climb aboard that life raft, grab a paddle, and start sorting out your financial life.

What Happens if You Don’t Pay a Collection Agency?

Written by Your Upsolve Team. Legally reviewed by Attorney Paige Hooper
Updated August 17, 2023

If you don't pay a debt collector or collection agency, you’ll likely face increasing efforts to collect the debt via phone calls, letters, or even social media contact. Not paying a debt in collections will also hurt your credit score. If you don’t pay, the collection agency can sue you to try to collect the debt. If successful, the court may grant them the authority to garnish your wages or bank account or place a lien on your property. You can defend yourself in a debt collection lawsuit or file bankruptcy to stop collection actions.

6 Tips for Settling Credit Card Debt Before Going to Court

Written by Amy Carst. Legally reviewed by Attorney Andrea Wimmer
Updated August 1, 2024

If you’ve been sued for credit card debt, you may still have time to settle your debt before you go to court. Follow these six tips to settle your credit card debt outside of a lawsuit: 1. Remember that the other side is motivated to negotiate. 2. Research the debt and decide what your best option is. 3. Negotiate a settlement. 4. Don’t ignore court papers. 5. Accept that you can’t win them all — have a plan B. 6. Watch out for debt settlement scams.

A Guide to Securing a Personal Loan After Bankruptcy

Written by Alicia Grayson. Legally reviewed by Attorney Andrea Wimmer
Updated February 10, 2021

Filing bankruptcy gives you a fresh start, but what if you need to secure a loan after your discharge has been entered? While you're still at the mercy of lenders and financial institutions, getting a loan is not impossible. Guest Contributor Alicia Grayson has put together this short guide on everything you need to know about getting a post-bankruptcy loan.

Can You Pay Student Loans With a Credit Card?

Written by Amy Carst. Legally reviewed by Attorney Andrea Wimmer
Updated July 5, 2023

You can’t make a federal student loan payment with a credit card. You may be able to use a third-party payment service, but most of these services have high fees. There are also some risks involved in using your credit card to pay your student loans. For example, credit cards often have much higher interest rates than federal student loans, so paying off your loans using a credit card can lead to spiraling debt as interest accrues on your card. This can negatively affect your credit score and put you in a difficult position with your finances.

What is a Proof of Claim in Bankruptcy?

Written by Attorney Amelia Niemi. 
Updated August 15, 2023

A proof of claim is what creditors are required to submit to the bankruptcy court before they can receive any money from the bankruptcy trustee. It’s the creditors’ way of saying, “I’m owed money, and here is how much, and why.” The trustee and the person who filed bankruptcy are given an opportunity to review and may object to any proof of claim that is filed in the case. Let’s take a closer look at how this all works.

Is there a way to keep a credit card I need when filing bankruptcy?

Written by Attorney Andrea Wimmer. 
Updated July 22, 2020

Unfortunately, there’s no way to keep a credit card, no matter the reason. If you owe a balance on the credit card, you have to list it as a debt. The debt will be discharged and the account closed by the creditor. Bankruptcy law requires that you list all of your debts. You are not allowed to simply “leave out” one of your credit cards. 

How Can I Repair My Credit Myself?

Written by Attorney Amelia Niemi. 
Updated August 1, 2023

This article will explain how credit reports and credit scores work and provide some simple but effective steps you can take that will help improve your credit score. You probably won’t be able to go from a 550 to a 800 credit score overnight but there are definite steps you can take that will help you repair your credit by yourself, without needing to hire a credit repair company.

Why Is LVNV Funding Calling Me?

Written by Lawyer John Coble. 
Updated August 21, 2024

LVNV is a third party debt buyer. It buys charged-off debts from the original creditors such as credit card companies for pennies on the dollar. Even though these companies only pay pennies for these debts, they are able to collect the full amount of the debt.

Bankruptcy for Senior Citizens

Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated August 8, 2023

Filing any bankruptcy can be a complicated process but filing bankruptcy as a senior citizen can be especially challenging. This article will discuss when bankruptcy may be right for seniors, the types of bankruptcy and debt relief alternatives to filing for bankruptcy.

Can a Credit Card Company Sue Me if I Stop Paying?

Written by Attorney Tina Tran. Legally reviewed by Attorney Paige Hooper
Updated August 21, 2024

Yes, a credit card company can sue you if you stop paying your bills. Typically, credit card companies will contact you several times before escalating the matter to legal action or charging off the debt to a debt collection agency. Though there’s no set timeline, you can expect legal action after six months of nonpayment. While there are no guarantees, you’re less likely to be sued if you owe less than $2,000.

Can A Judgment Creditor Take My Car?

Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated August 11, 2020

Once a creditor files a lawsuit and is awarded a judgment by the court, it has several options to satisfy its debt. It can garnish wages or levy a bank account. It can also obtain a judgment lien and place it on real property such as a house or even personal property such as an automobile. This article will explain your options and how you can use them when a so-called judgment creditor files a lien on a motor vehicle.

Can My Spouse Be Pursued for My Debts?

Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated November 21, 2024

Generally speaking, you can’t be pursued for your spouse’s debt unless you live in one of the nine community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin) or you’ve co-signed or co-borrowed on a loan or you have a joint account. In community property states, most debts incurred during the marriage are considered shared, which means creditors might be able to pursue both spouses for repayment, even if only one spouse signed for the debt.

Can an Employer Deny Me a Job Because of My Bad Credit?

Written by Attorney Kassandra Kuehl. 
Updated May 19, 2022

In the majority of states, employers can deny you employment if you have bad credit. Some states and cities have passed laws that prohibit the practice, though there are some exceptions, such as for jobs in the financial sector. Employers must get your written consent before they run a credit check as part of the hiring process. Having certain negative items on your credit report may not hurt your chances for all jobs.

Will I Go to Jail for Not Paying My Debts?

Written by Attorney Kassandra Kuehl. 
Updated August 10, 2023

You can't be thrown in jail for not paying your credit cards and it's illegal for collection agencies to threaten you with jail time over the phone. Don’t be intimidated by such threats; be proactive, know your rights under the FDCPA, and research your debt relief options, such as credit counseling and Chapter 7 bankruptcy.

Can My Social Security Disability Benefits Be Garnished?

Written by Attorney Andrea Wimmer. Legally reviewed by Attorney Paige Hooper
Updated October 28, 2024

Social Security Disability Income (SSDI) benefits are generally protected from garnishment, which means creditors can’t take this money to pay off most debts. But, there are some exceptions. Your SSDI benefits can be garnished to cover unpaid child support, alimony, federal taxes, or federal student loans.

Will My Debt Disappear After 7 Years

Written by Attorney Kassandra Kuehl. 
Updated August 18, 2021

The idea that if debt remains unpaid for 7 years it will simply disappear is a myth in the United States. If you’re under the impression that your unpaid debts will disappear after a 7 year period, you’re certainly not alone.

Debt Collection Basics: Can I Pay Off Debts in Collection?

Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated July 5, 2023

Learn how to tell if your debt is in collection, how you can use a payment plan to pay off your past-due debt and what steps you can take to stop stressful collection account activity.

Can I Fix Negative Information on My Credit Report?

Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated April 19, 2024

This article will explain how to get your credit report and what types of information — positive and negative — will appear on your report. We'll also talk about how to fix your credit report when misinformation appears on your credit history.

Can a Debt Collector Take Me to Court?

Written by Attorney Karra Kingston. Legally reviewed by Attorney Paige Hooper
Updated April 19, 2024

Yes, debt collectors can take you to court for unpaid debt. But this won’t be their first move. Debt collection agencies will first call you and send notices in the mail to try to collect on unpaid debt. It’s common for debt collectors to make several attempts over a period of many months to collect a debt before they decide to sue you.

Can a Creditor Garnish or Levy My Social Security?

Written by Attorney Paige Hooper. 
Updated October 26, 2022

Approximately 70 million people receive some sort of Social Security income each month, including almost 90% of Americans age 65 or older. In other words, Social Security payments play a vital role in our society. These important benefits are usually protected from creditors, but there are a few exceptions. This protection is sometimes, but not always, automatic. This article covers which benefits are automatically protected and how you can protect those that aren’t. It also covers the exceptions to the rule — situations in which Social Security benefits aren’t protected. Finally, it explains how bankruptcy could be an alternative way to protect your Social Security income.

What Happens if I Don’t Pay an Unsecured Loan?

Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated May 21, 2024

Unsecured debt is any debt that isn’t backed by collateral. The most common types of unsecured debt are credit card debt, student loans, personal loans, cash advances, medical debt, retail store accounts, and money borrowed from family or friends. If you default on unsecured debts, the lender can send your account to a collection agency, which can lead to stressful phone calls and notices, a lowered credit score, and more difficulty getting new credit in the future.

Can I Settle a Debt After a Lawsuit Has Been Filed?

Written by Attorney Jenni Klock Morel. 
Updated August 21, 2024

Yes, you can settle a debt even if a lawsuit has already been filed against you. Some lenders may allow you to pay off your debt through either a repayment plan or partial lump-sum settlement. Either way, ignoring a debt is not a good option. It will only create more issues in the future. It can feel overwhelming to be served with a debt lawsuit. But remember, you’re not alone and you have options.

What Do I Do About My Car Payment That Is Way Too High?