Most of the people that I meet with at Halcomb Singler, LLP, have waiting until things have gotten fairly bad to meet with me about potentially filing bankruptcy. It is not uncommon that a potential client has a few judgments against them at the time I meet with them. Often, a potential client has been motivated to contact my office because one of the judgment creditors is about to garnish his or her wages. It is important for a bankruptcy attorney to identify when there are liens on a person's house because filing bankruptcy alone will not discharge the lien.
For example, lets say Suze gets sued by American Slow in Hamilton County, Indiana. Suze knows she owes American Slow, but cannot afford to pay them and just ignores the lawsuit Suze also owns a home in Hamilton County, Indiana. Suze owns this house in her name alone. What Suze may not know is that once American Slow obtained a judgment against her in the same county in which she owns real estate that judgment became a lien on the real estate. What this means to Suze is that Suze cannot sell the house without paying off the lien.
What Suze likely doesn't know is that if she files for bankruptcy and gets a discharge that the lien stays on the house. No one can sue Suze for the lien personally, but the bottom line is that Suze will have to pay the lien prior to selling her house, even if it is 5 years after she has received her bankruptcy discharge. AND there is no reason (unless Suze is a licensed attorney in Indiana handling bankruptcy cases) that Suze would know this. So, what is the point of filing bankruptcy if the lien survives?
In many cases a judicial lien can be avoided in bankruptcy. When a lien is avoided it means that it is no longer attached to the real estate and that when Suze goes to sell the house at some point down the road that she will not have to pay off the lien in order to sell the house. In order to avoid a lien in Chapter 7 or Chapter 13 bankruptcy, a bankruptcy debtor must file a motion in compliance with 11 U.S.C. 522(f). It is important to note that not all liens can be avoided in a bankruptcy. This is why it is important to meet with a bankruptcy attorney to go over whether filing bankruptcy would be beneficial in your situation. While I am sure there is someone out there who has successfully filed a motion to avoid a judicial lien in bankruptcy, my guess is that there are thousands more who went through bankruptcy without an attorney and have no idea that when they sell their home that there will a lien to pay off.
If you are a resident of Marion, Hamilton, Tipton, Boone, Madison or Hancock county, Indiana and would like to meet with me regarding whether bankruptcy is an option for you please feel free to give me a call. The telephone number is (317) 575-8222. Or, you can click here and our office will contact you regarding an appointment. There is no fee for the initial consultation and if you do decide to file bankruptcy our fees are flat fees that can be paid in installments.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
Thursday, June 14, 2012
Thursday, June 7, 2012
Think Twice Before Going Back to School
What?? I know that is what a lot of people probably think when I write a post saying that people should think twice before going back to school. Lets be clear. I am not anti-education...quite the opposite. I spent a total of 7 years in college to become an attorney. However, I have recently run into several people who have told me that they have graduated from college and are now going to get their graduate degree because they can't find a job or can't find a good job and they can't afford the payments on their student loans.
There are a few caveats here. If your employer is paying for an undergraduate or graduate degree jump on that opportunity. While, in my opinion, it doesn't always make sense to go to school when you are paying for it out of your own pocket, there is little down side to going back to school when you can obtain a degree with no financial expenditure. Another exception that comes to mind are veterans who have the ability to use the GI bill. Many veterans can not only go back to school with no tuition, but many can also receive a stipend from the government of a few hundred dollars per month while in school.
However, many people I have run across have told me that they went back to school when their student loans came due or when a deferment or forbearance ran out because they thought getting an additional degree would help them to get a better job so they could repay student loans. There is really no reason that being able to pay or not pay your student loan payment should have any bearing on whether you go back to school. A decision to return to school should be based on interest, potential for advancement in your career of choice, your family situation, your support system, etc.
Be realistic about how much money you will be able to make when you graduate after going back to school. I recommend doing more than reading what the school you are planning to attend tells you about how much money you will make. I have recently read about several students filing lawsuits against their schools for false advertising regarding expected salaries. The truth is that colleges and universities are businesses. The more students they have, the more money that colleges and universities make. Listening to a college or university alone regarding how much money you will make after graduation is akin to believing a home exercise informercial that says you can drop 50 pounds just by sitting on the couch and sprinkling a special powder on your food before you eat it. Make sure you get independent numbers. It just doesn't make sense to pay money and be stuck with loans for school that won't get you any more money in the long run.
And remember that student loans are most likely not going anywhere. I wrote another blog posting for this site several months ago discussing that it is very, very difficult to discharge student loans in bankruptcy. So, if you ever find yourself in financial trouble, which could very well have been caused by student loans, don't expect filing for bankruptcy to help. Very few debtors are successful in discharging their student loans, so before you go back to school simply because you can't afford to pay your student loans now think long and hard. You may just end up in a worse position that you are already in now.
If you find yourself in a difficult financial situation now and live in or near Indianapolis, Carmel, Zionsville, Kokomo, Noblesville or Westfield, Indiana, I am available to meet to discuss bankruptcy and non-bankruptcy options such as creditor workouts. To set an appointment to meet with me at Halcomb Singler click here or call us at (317) 575-8222.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
There are a few caveats here. If your employer is paying for an undergraduate or graduate degree jump on that opportunity. While, in my opinion, it doesn't always make sense to go to school when you are paying for it out of your own pocket, there is little down side to going back to school when you can obtain a degree with no financial expenditure. Another exception that comes to mind are veterans who have the ability to use the GI bill. Many veterans can not only go back to school with no tuition, but many can also receive a stipend from the government of a few hundred dollars per month while in school.
However, many people I have run across have told me that they went back to school when their student loans came due or when a deferment or forbearance ran out because they thought getting an additional degree would help them to get a better job so they could repay student loans. There is really no reason that being able to pay or not pay your student loan payment should have any bearing on whether you go back to school. A decision to return to school should be based on interest, potential for advancement in your career of choice, your family situation, your support system, etc.
Be realistic about how much money you will be able to make when you graduate after going back to school. I recommend doing more than reading what the school you are planning to attend tells you about how much money you will make. I have recently read about several students filing lawsuits against their schools for false advertising regarding expected salaries. The truth is that colleges and universities are businesses. The more students they have, the more money that colleges and universities make. Listening to a college or university alone regarding how much money you will make after graduation is akin to believing a home exercise informercial that says you can drop 50 pounds just by sitting on the couch and sprinkling a special powder on your food before you eat it. Make sure you get independent numbers. It just doesn't make sense to pay money and be stuck with loans for school that won't get you any more money in the long run.
And remember that student loans are most likely not going anywhere. I wrote another blog posting for this site several months ago discussing that it is very, very difficult to discharge student loans in bankruptcy. So, if you ever find yourself in financial trouble, which could very well have been caused by student loans, don't expect filing for bankruptcy to help. Very few debtors are successful in discharging their student loans, so before you go back to school simply because you can't afford to pay your student loans now think long and hard. You may just end up in a worse position that you are already in now.
If you find yourself in a difficult financial situation now and live in or near Indianapolis, Carmel, Zionsville, Kokomo, Noblesville or Westfield, Indiana, I am available to meet to discuss bankruptcy and non-bankruptcy options such as creditor workouts. To set an appointment to meet with me at Halcomb Singler click here or call us at (317) 575-8222.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
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