Bankruptcy
Relief from the strain of student loan debt
Some of our clients come to us for advice about how to handle staggering levels of student loan debt. We educate them about options for relieving the pressure of monthly student loan payments, such as those discussed in this previous post. CNBC just published an article that provides statistics about student loan debt as well…
Read MoreThe current uncertainty about the future of medical-debt levels
Medical debt is an important topic in the news right now because of the activity in Congress around whether to repeal the Affordable Care Act, also called the ACA or Obamacare. We talk about medical debt in our blogs because of the impact it has on our clients who talk to us about legal options…
Read MoreRetail bankruptcy on the rise
In April, the Albuquerque Journal reported that five Payless ShoeSource stores will close in New Mexico, including one in Albuquerque. This decision was made in connection with the company’s Chapter 11 bankruptcy filing. “Chapter 11” refers to the U.S. Bankruptcy Code and is a form of business reorganization bankruptcy that usually allows a business to…
Read MoreCredit card debt is a serious problem in New Mexico
After the recession, New Mexicans are still struggling to keep their homes or recover from unemployment. A loss of health insurance may have left a mountain of medical debt. In these times, people may use credit cards to make ends meet – possibly as their only means to buy food, medicine, car insurance, and other…
Read MoreHow bankruptcy’s automatic stay impacts debtors and creditors
One of the most important features of federal bankruptcy law is the automatic stay. When a consumer or business files a petition for bankruptcy relief in U.S. Bankruptcy Court, the petition effectively freezes most collection efforts against the debtor who filed the bankruptcy petition. In other words, creditors and collection agencies must stop trying to…
Read MoreDispelling common bankruptcy myths
Filing bankruptcy is scary for a lot of people. Many see it as a sort of failure, but that isn’t completely a bad thing. If you are thinking of filing bankruptcy, it means your financial management has already fallen short of what you would have liked it to be. Sometimes filing bankruptcy simply means you…
Read MoreLoss of employment can quickly bring debt to unsustainable level
After a slow economic recovery, New Mexicans just received the unwelcome news that our unemployment rate is the highest of any state in the country, according to the Albuquerque Journal. Citing the U.S. Department of Labor or DOL as well as state data, the paper reported that the Land of Enchantment’s unemployment rate was 6.7…
Read MoreBasic considerations in small-business bankruptcy
We have written lately about small-business debt collection. Today we will instead look at the reverse problem: when a small business cannot pay its debts and considers bankruptcy as a potential answer. Get legal advice When a small-business faces financial challenges, the owner should speak with an attorney about potential legal remedies. Can the business…
Read MoreMore on small-business debt collection
Last month, we talked about the importance of debt collection to the stability of many small-business owners. We pointed out that a lawyer should draft precise contracts for both customer and business-to-business transactions. Clear contractual provisions that specify when debts are due, methods of payment and how defaults will be handled puts the family business…
Read MorePutting a small business debt collector in a position of strength
We represent small business owners in a variety of matters, but an important part of our practice is helping these clients collect debts owed to them. We have blogged about this before, particularly about the different approaches to collection that might be taken to secured versus unsecured debts. Staying on top of debt collection is…
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