The economic impact of the COVID-19 pandemic has left many Idaho small business owners in a tough spot, grappling with mounting debt and financial uncertainty. I have consulted and met with more Idaho small business owners in the last 18 months than I have in the last 12 years of my practice. While bankruptcy is often associated with individuals seeking debt relief, it can also be a valuable tool for small business owners, even though business entities themselves do not receive discharges under the bankruptcy code. Idaho small business owners can still leverage bankruptcy as a tool to navigate their financial challenges and regain control of their businesses.
Understanding the Basics:
If your small business is a sole proprietorship, filing for Chapter 7 bankruptcy can provide relief by discharging personal debts related to your business. Here's how you can make the most of this option:
For small businesses structured as corporations or LLCs, Chapter 11 bankruptcy can be a lifeline to save the business. Here's how to go about it:
Idaho small business owners facing financial hardship can look to the bankruptcy code for help and as a viable tool for debt relief and business recovery. Whether you operate as a sole proprietorship or a business entity, bankruptcy can help you reach your goal and navigate financial challenges. By understanding Chapter 7 and Chapter 11 and working closely with an experienced bankruptcy attorney, Idaho small business owners can take steps toward securing the financial future of your business. Student loan payments will start up again in October 2023. Interest on student loans will resume accruing starting September 2023. With the upcoming due date for student loan payments on the horizon, it's crucial for borrowers to be well-prepared to manage their financial responsibilities effectively. As news reports and articles abound with advice and information, it's important to distill the key takeaways to ensure a smooth transition into repayment. In this article, we will delve into the imminent student loan payment due date and provide you with the top three ways you can get ready for this significant financial milestone.
Top 3 Tips to Prepare for Student Loan Payments
Bankruptcy Strategy It’s well known that bankruptcy does not automatically wipe out student loans, but bankruptcy as a tool can be strategically used to clean up monthly budgets by wiping out debts like credit card debt, medical bills, payday loans, bank fees, and back owed utility bills. By wiping out these debts with a bankruptcy a student loan borrower with an otherwise tight budget can free up budget funds to pay monthly bills and have enough to pay their student loan payment. The impending student loan payment due date serves as a reminder for borrowers to prepare themselves for the financial responsibility that comes with repaying their education debt. By understanding the due date, assessing your financial situation, creating a realistic budget, and exploring repayment assistance and forgiveness programs, you can navigate this critical phase with confidence. Remember that staying informed and proactive will not only help you manage your student loan payments effectively but also set you on a path towards financial stability. As news updates continue to provide insights and recommendations for borrowers, keeping these top three tips in mind will undoubtedly serve as a solid foundation for successfully navigating the world of student loan repayments. So, gear up, gather information, and embark on this journey armed with knowledge and a well-thought-out plan. Your financial future is within reach – all it takes is preparation and a proactive approach. The U.S. Department of Education’s Fresh Start initiative from April 6, 2022 has made significant changes to the way defaulted federal student loans are reported to credit reporting agencies. The positive impact of this initiative has been significant for student loan borrowers. Experian reported in February 2023, the Department of Education's change in reporting positively impacted approximately 8 million trades and 3.5 million consumers. The positive impact is a result of credit bureaus changing the "in default" the status to “current” and “in repayment” status of eligible defaulted federal student loans. These status changes have positively affects on credit scores of borrowers as the record of the default is removed from credit reports.
More information about the Fresh Start program can be found here. Of course, it is incredibly difficult to predict the exact financial challenges that may arise in 2023, as it will depend on a variety of factors such as the global economy, political climate, and natural disasters. However, we are going to try anyways and point out some of the potential financial challenges that could arise in 2023 include:
If you have a judgment against you in Idaho, it means that a court has ruled in favor of the plaintiff in a civil case and has ordered you to pay a certain amount of money or to take some other action.
Here are some things you can expect when you have a judgment against you in Idaho:
Should you fall behind in paying your debts, or if an error is made on your account, it is likely that you will be contacted by what is known as a “debt collector”. A debt collector is a person, other than the original creditor, who collects debts owed to others. During this collection process you have the right to be treated fairly. Your rights are listed in The Fair Debt Collection Practices Act (FDCPA). This federal law prohibits debt collectors from engaging in unfair, deceptive, or abusive practices while collecting debts. You can learn a lot about your rights from the Federal Trade Commission's web site. Under the FDCPA:
If you feel that your rights have been violated in any way, call Peterson Zeyer Law and set up a free consultation. We will be able to help you through the necessary steps to put a stop to oppressive debt collectors. You’ve probably heard that you can get rid of your credit card debt by filing for bankruptcy. This is true, for the honest but unfortunate debtor. Overwhelming credit card debt is one of the top reasons people file bankruptcy. Schedule a free bankruptcy consultation with Idaho bankruptcy attorney Hyrum Zeyer and he will guide you smoothly through the bankruptcy process to successfully clear credit card debt and get a fresh start. Below is information about what to expect when filing bankruptcy.
Preparing to File Bankruptcy Information and Documentation Needed To prepare your petition and schedules, Peterson Zeyer Law will help you gather and organize your financial information and documents. After a free bankruptcy consultation, Peterson Zeyer Law will let you know what documents you will need to provide. Everyone should plan on providing the following documents:
To file bankruptcy, the bankruptcy code requires that you list all your assets, even your small and simple assets. Financial assets, including bank accounts, you’ll need to provide the last six months of statements. It’s always important to find the current fair market value of your real property and vehicles. Online websites that value real property and vehicles are a good place to start but sometimes real estate agents or appraisers are needed. For your remaining personal assets like clothing, household goods, and personal items, list what you would expect to pay at a yard sale or on Facebook Marketplace for a similar item. If you have jewelry, antiques, original art, or collectibles of any kind, an appraisal may be required. With current and accurate values for your assets bankruptcy attorney Hyrum Zeyer will help protect your assets to the fullest extent of the law. Taking the Credit Counseling Course The bankruptcy code requires that you take an online course before filing the bankruptcy and second course after filing bankruptcy. Each course takes about 90 minutes to complete and once completed you will receive a certificate of completion that needs to be filed with the bankruptcy court. Peterson Zeyer Law will provide all the information needed to complete this step and to file the certificates for you. What to Expect When Your Bankruptcy Petition Is Filed Your Bankruptcy Case Number and the Automatic Stay Once you file your petition, schedules, list of creditors, and certification of completion of the credit counseling course, and you pay your filing fee, you will receive a bankruptcy case number identifying your case. Once your bankruptcy is filed the bankruptcy automatic stay is in place. Creditors will receive notice of your bankruptcy filing and the automatic stay. The automatic stay prevents Creditors from instituting or continuing any collection efforts against you, including sending letters, calling you, suing you, continuing a lawsuit, garnishing your wages, or levying on your bank account. If a creditor persists in collection efforts, contact the Peterson Zeyer Law to resolve the issue. Your Meeting of Creditors A day or two after you file, your Meeting of Creditors will be scheduled. Peterson Zeyer Law will represent you at this Meeting of Creditors and will prepare you to meet with the Trustee. During this meeting the trustee will swear you in and ask you questions about your bankruptcy petition, finances, and assets. The meeting is also an opportunity for creditor to appear and ask you questions. Usually, Creditors do not appear and ask questions. However, they can. Creditors will be more likely to appear if there is an allegation of fraud on your part in incurring the debt, or if you have a disgruntled ex-spouse or neighbor that you owe a debt to. These meets usually last 8 to 10 minutes, and Bankruptcy Attorney Hyrum Zeyer with Peterson Zeyer Law will make sure you are prepared to answer the questions at the Meeting of Creditors and that this meeting will go smoothly for you. Your Financial Management Course Any time after you file, you can take this second course online. Just like the first course, a certificate of completion must be filed with the bankruptcy court. Peterson Zeyer Law will make sure to send you a reminder about this course and will file your certificate of completion for you. Receiving Your Discharge Order After the deadline for creditors to object to discharge has passed, the court will automatically enter a discharge order. You and your creditors will be mailed the discharge order directly from the bankruptcy court. This discharge order means that you are no longer responsible for paying back your dischargeable debt. Peterson Zeyer Law will help you know if you have any debts that will not be automatically discharged like student loans, some tax debts, and family support obligations. Bankruptcy attorney Hyrum Zeyer with Peterson Zeyer Law has the experience to make the bankruptcy process simple and smooth for you. For a free bankruptcy consultation call us at 208-433-9882 or access Mr. Zeyer’s online calendar through the Contact Link. You’ve probably heard that you can get rid of your credit card debt by filing for bankruptcy. This is true, for the honest but unfortunate debtor.
Overwhelming credit card debt is one of the top three reasons people file bankruptcy, the others being job loss and medical debt. Schedule a free bankruptcy consultation with Idaho bankruptcy attorney Hyrum Zeyer and he will guide you smoothly through the bankruptcy process to successfully clear credit card debt and get a fresh start. Preparing to File Bankruptcy Information and Documentation Needed To prepare your petition and schedules, Peterson Zeyer Law will help you gather and organize your financial information and documents. After a free bankruptcy consultation, Peterson Zeyer Law will let you know what documents you will need to provide. Everyone should plan on providing the following documents:
To file bankruptcy, the bankruptcy code requires that you list all your assets, even your small and simple assets. Financial assets, including bank accounts, you’ll need to provide the last six months of statements. It’s always important to find the current fair market value of your real property and vehicles. Online websites that value real property and vehicles are a good place to start but sometimes real estate agents or appraisers are needed. For your remaining personal assets like clothing, household goods, and personal items, list what you would expect to pay at a yard sale or on Facebook Marketplace for a similar item. If you have jewelry, antiques, original art, or collectibles of any kind, an appraisal may be required. With current and accurate values for your assets bankruptcy attorney Hyrum Zeyer will help protect your assets to the fullest extent of the law. Taking the Credit Counseling Course The bankruptcy code requires that you take an online course before filing the bankruptcy and second course after filing bankruptcy. Each course takes about 90 minutes to complete and once completed you will receive a certificate of completion that needs to be filed with the bankruptcy court. Peterson Zeyer Law will provide all the information needed to complete this step and to file the certificates for you. What to Expect When You File Chapter 7 Bankruptcy Your Bankruptcy Case Number and the Automatic Stay Once you file your petition, schedules, list of creditors, and certification of completion of the credit counseling course, and you pay your filing fee, you will receive a bankruptcy case number identifying your case. Once your bankruptcy is filed the bankruptcy automatic stay is in place. Creditors will receive notice of your bankruptcy filing and the automatic stay. The automatic stay prevents Creditors from instituting or continuing any collection efforts against you, including sending letters, calling you, suing you, continuing a lawsuit, garnishing your wages, or levying on your bank account. If a creditor persists in collection efforts, contact the Peterson Zeyer Law to resolve the issue. Your Meeting of Creditors A day or two after you file, your Meeting of Creditors will be scheduled. Peterson Zeyer Law will represent you at this Meeting of Creditors and will prepare you to meet with the Trustee. During this meeting the trustee will swear you in and ask you questions about your bankruptcy petition, finances, and assets. The meeting is also an opportunity for creditor to appear and ask you questions. Usually, Creditors do not appear and ask questions. However, they can. Creditors will be more likely to appear if there is an allegation of fraud on your part in incurring the debt, or if you have a disgruntled ex-spouse or neighbor that you owe a debt to. These meets usually last 8 to 10 minutes, and Bankruptcy Attorney Hyrum Zeyer with Peterson Zeyer Law will make sure you are prepared to answer the questions at the Meeting of Creditors and that this meeting will go smoothly for you. Your Financial Management Course Any time after you file, you can take this second course online. Just like the first course, a certificate of completion must be filed with the bankruptcy court. Peterson Zeyer Law will make sure to send you a reminder about this course and will file your certificate of completion for you. Receiving Your Discharge Order After the deadline for creditors to object to discharge has passed, the court will automatically enter a discharge order. You and your creditors will be mailed the discharge order directly from the bankruptcy court. This discharge order means that you are no longer responsible for paying back your dischargeable debt. Peterson Zeyer Law will help you know if you have any debts that will not be automatically discharged like student loans, some tax debts, and family support obligations. Bankruptcy attorney Hyrum Zeyer with Peterson Zeyer Law has the experience to make the bankruptcy process simple and smooth for you. For a free bankruptcy consultation call us at 208-433-9882 or access Mr. Zeyer’s online calendar through the Contact Link. |