Federal student loans are guaranteed by the US government and administered by the Department of Education. When a borrower defaults on the loan, the Department of Education may refer the loan to the Department of the Treasury for collection. The Treasury issues your tax refund check, which can be offset to pay your defaulted student loans. The Treasury will offset your entire refund, even if it includes money owed to your non-obligated spouse or an earned income tax credit.

Many people start financial planning when the decision is made to file bankruptcy. Financial planning is good, but doing it yourself can be disastrous. In particular, there are five activities that can cause serious problems in your bankruptcy case, so today’s article is a list of the top five activities to avoid before you file bankruptcy.

The most common goal in bankruptcy is the discharge; however the discharge is not every debtor’s goal. For some, the goal of bankruptcy may be to use the automatic stay to postpone a legal action, like a foreclosure or a lawsuit, while the debtor negotiates a settlement. For others, it may mean buying time to refinance a debt. When the objective is met, these debtors may want to dismiss the bankruptcy case. The bankruptcy code contains special provisions for dismissing a bankruptcy case.

There are several differences between Chapter 13 and Chapter 7 which offer special advantages under the right circumstances. The most common types of personal bankruptcy are Chapter 7 and Chapter 13 bankruptcy. A Chapter 7 bankruptcy is an “erase-your-debts-and-start-fresh” bankruptcy. The Chapter 7 case typically takes around four to five months and most unsecured debts are discharged.

Chances are you can make big cuts in discretionary spending for high tech products and services. This article will look at how we can save money on three technologies that were not commercially available in 1971. In the 1980’s Prince sang, “Tonight I’m gonna party like it’s 1999!” Well, if you’re being financially squeezed, perhaps it’s time to “budget like it’s 1971!”

There is an old saying, "A drowning man will grab even the edge of a sword." For a homeowner drowning in debt, any assistance may seem beneficial. Unfortunately, there are scam artists that use a desperate situation to make a few quick bucks. Case in point is an Austin, Texas, man who recently pled guilty to operating a foreclosure-rescue scam.

The first few months of the year are a busy time for bankruptcy attorneys. There are two reasons for this: first. First, it is the start of a new year and a good time for a change. The holiday season has passed and families begin making plans for the future.

Debt settlement ads are very attractive to individuals struggling with debt. The promise is to reach an agreement you can afford to pay. The debtor agrees to pay a percentage of the debt (usually in a lump sum), and the creditor agrees to release the remaining obligation. Sounds simple, right?

As a bankruptcy debtor you are required to name all creditors and the amount owed as of the day your bankruptcy case is filed. These creditors are sent notice of your case directly from the bankruptcy court.

The bankruptcy automatic stay is an enormously broad and powerful piece of legal protection. The stay is a temporary injunction that prohibits creditors from proceeding with collection actions against the debtor during the bankruptcy case.

In a Chapter 13 bankruptcy, secured debts, like a home mortgage or car loan, are sometimes modified through the Chapter 13 repayment plan, either by cram-down or lien stripping. These bankruptcy tools can be very beneficial because many individuals are upside-down on secured property, meaning they owe more than the property is worth.

Who hasn’t fantasized about winning the lottery when you are cash strapped? It seems that winning the lottery would solve all of your financial problems. Not so fast.

The bankruptcy laws are confusing and complicated. Fortunately Congress and the US Supreme Court have given us a guidepost by stating that the bankruptcy laws exist to help debtors who are poor and honest.

The lesson to be learned from “nuns in bankruptcy court” is that bankruptcy is not morally wrong. There is nothing evil in seeking bankruptcy help, just as there is nothing inherently wrong with credit. Bankruptcy and credit are simply financial tools.

It is no secret that creditors want to be paid. Perhaps in a perfect world every debt would be paid in full and on time. Unfortunately, life happens and sometimes individuals are not able to pay their debts. Creditors are aware of this and try to protect themselves with binding contracts and agreements. One clause that regularly appears is the “bankruptcy waiver.”

Foreclosure is always ugly business, but public complaints from homeowners alleging sloppy research, unethical filings, and outright lies, have made law firms that specialize in foreclosure especially villainous in the public eye.

Some unscrupulous non-attorneys take advantage of the poorest and most vulnerable by offering bankruptcy petition preparation services at a discount rate. Maybe you have seen their ads in free community newspapers. These services offer to prepare your bankruptcy petition and avoid the “high cost” of an attorney.

When businesses need to restructure, they turn to Chapter 11, commonly called the “business bankruptcy.”

Can you get evicted for declaring bankruptcy? This is a tricky question and depends on the individual facts of your case.

U.S. taxpayers are taxed for so many transactions. One of the lesser-known taxes is the “cancellation of debt” tax. Many consumers who successfully resolve their debts for “pennies on the dollar” receive a nasty surprise at the end of the tax year.

When a bankruptcy case is filed the individual debtor announces his or her intent to proceed under Chapter 7, 11, or 13 of the federal Bankruptcy Code. Each bankruptcy chapter has its own advantages and challenges. During some cases, the debtor’s circumstances may change and another bankruptcy chapter becomes more beneficial. In these cases the debtor may be able to convert the bankruptcy case to a different chapter.

In 2005, Congress changed the Bankruptcy Code and added a means test to prevent “wealthy” debtors from filing Chapter 7 Bankruptcy. The means test is a calculation designed to identify debtors who can afford to pay some of their unsecured debts (for instance, credit card debt) and encourage repayment of these debts through a Chapter 13 repayment plan.

This holiday season layaway is making a comeback as a financing option. Layaway was very popular with holiday shoppers years ago, but its popularity diminished as credit became easier to obtain during the 1990’s.

Recently the commissioners of Jefferson County, Alabama, voted to file the largest Chapter 9 bankruptcy in history. The New York Times reports that the county is “roughly $4 billion” in debt. Jefferson County’s financial trouble stems from poor attempts to finance the court-ordered rebuilding of its out of date sewer system. Jefferson County is Alabama’s most populous county and home to the city of Birmingham.

EBay is an online auction website where people and businesses buy and sell goods. You probably already know that. What you may not know is how EBay can help you during your bankruptcy.

Bankruptcy attorneys are good at hyping the bankruptcy discharge. Terms like “Erase Your Debts!” and “Start Fresh!” abound in consumer bankruptcy advertising. You may know that at the end of your bankruptcy case the court will enter an order discharging certain debts. But what exactly happens to debts that are discharged?

Corporate Knights, a Canada-based sustainability-focused media firm, publishes a unique list every year that predicts the world's most sustainable large corporations.

President Obama has announced a plan that seeks to lessen the burden of paying back student loans. The plan calls for lowering the maximum required payment on student loans from 15 percent of discretionary income annually to 10 percent for eligible borrowers. This plan goes into effect in 2012 and any remaining debt would be forgiven after 20 years.

Automatic payments are a convenient way to pay your bills. An automatic payment is an arrangement for a specific amount of money to go from your bank account to the recipient’s bank account. Automatic payments are useful to pay monthly bills that do not change, like a monthly car or mortgage payment.

When bankruptcy is a possibility, people who live in Illinois should seek the advice of a Chicago bankruptcy attorney to discuss how their retirement funds will be treated. If you're worried about losing your retirement funds by filing for bankruptcy you may be surprised that a bankruptcy may be the best thing you can do to save your retirement funds.

Many of today’s homeowners have more than one mortgage on their home and are struggling to pay multiple mortgages. Some people are simply “walking away” from their homes because the value of their home is significantly less than the balances of their mortgages. However, I am convinced that thousands of homeowners would be in a position to keep their homes if these second and other junior mortgages were eliminated.

Chapter 7 and Chapter 13 bankruptcy each serve their own purpose. Understanding the differences between the two types of bankruptcy can help you decide which bankruptcy is best for you.