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Posted on in Bankruptcy

Be Honest With Your Bankruptcy Lawyer

If you are facing an insurmountable level of personal debt, filing for Chapter 7 or Chapter 13 bankruptcy might be the most effective way for you to eliminate that debt and get yourself on a path toward financial freedom. It is in your best interest to work with a bankruptcy lawyer to complete the process because a lawyer can advise you about the choices you face and advocate for you during interactions with the court and your creditors.

Working with a lawyer is a professional partnership. In order to help you, your lawyer needs to know every detail of your case, even the ones that you feel are unsavory or embarrassing. If you are not willing to address your problems accurately, you are not ready to file for bankruptcy.

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With Bankruptcy Pending, ITT Tech Employee Lawsuits are Pushed to the Background

In 2016, ITT Technical Institute filed for Chapter 7 bankruptcy. This came after years of growing debt amid scrutiny of it and other for-profit colleges. The institution closed 136 of its campuses throughout the United States, leaving approximately 350,000 students unable to finish their degree programs. Following the filing, the media turned its attention to these students, many of whom have accrued significant debt while attending ITT Technical Institute.

But the students were not the only individuals impacted by the bankruptcy. In preparation for its liquidation, ITT Tech laid off employees without proper notice, leaving many of them “stranded” as well. The employees are seeking compensation for their lost wages and benefits, such as paid vacation days and 401(k) contributions for the 60-day period prior to laying them off that the institution was required to provide. But because of the bankruptcy proceeding, it is expected that the employees will remain in this position for the foreseeable future.

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Mistakes to Avoid When Going Through the Bankruptcy Process

Bankruptcy can be confusing. When you are trying to work through the stress and confusion of the bankruptcy process while balancing your job and family commitments, you can easily become overwhelmed and prone to making mistakes. These mistakes can only hurt you more, potentially invalidating your bankruptcy claim or forcing you to take extra time and money to repair them.

The best way to avoid making these mistakes is to familiarize yourself with them. Below are a few mistakes that individuals working through the Chapter 7 or Chapter 13 bankruptcy process can make.
Not Providing the Trustee with Your Required Documents

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How is Student Debt Different from Other Types of Debt?

To say that student debt is a big issue in the United States is an understatement. According to marketwatch.com, approximately 70% of American bachelor's degree holders graduated with some student debt. 40 million Americans currently have student loans, and the total amount of outstanding student debt among Americans is $1.2 trillion. In comparison, the average American household carries $15,609 in credit card debt.

It is not uncommon to hear student debt cited as the reason why a young adult still lives with his or her parents or has put off marriage, home ownership, and having children of his or her own. Student debt is different from other types of consumer debt, such as credit card and car loans, because it often cannot be discharged in bankruptcy.

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How Can I Fix My Credit After Filing for Bankruptcy?

When you file for bankruptcy, your credit can be negatively impacted. Do not let this fact alone keep you from filing for bankruptcy if you need it. While going through the bankruptcy process will require you to make sacrifices and change ingrained habits, sometimes bankruptcy is the only way for an individual to take control of his or her finances. When you complete the Chapter 7 bankruptcy process, a record of the bankruptcy stays on your credit report for up to 10 years. Chapter 13 bankruptcies stay on filer's credit reports for up to seven years.

If, after discussing your circumstances with an experienced bankruptcy lawyer, you determine that filing for bankruptcy is the right choice for you, start actively planning for how you will repair your credit while working through bankruptcy and in the years that follow. You can rise beyond this obstacle, but it will require smart planning from you and a willingness to make sacrifices for your future.

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