Hudson WI Bankruptcy Law Blog

Nadya Suleman was an unemployed single mom of six in December 2008. She was able to make ends meet with public assistance, including Social Security disability and food stamps. She lived in her mother's three-bedroom home, but even a roof over head was not a sure thing when the home went into foreclosure.

By the end of January 2009, the mother's financial circumstances had not changed but she had another eight mouths to feed. It was then that the mother received the nickname 'Octomom' by the media and learned just how expensive multiple children can be. By the end of April 2012, the mother filed for Chapter 7 bankruptcy protection as a way to help her and her family out of the debt that had mounted since the birth of the octuplets.

As Hudson area business owners strive to stay open throughout tough economic times, many bankruptcy professionals have noticed that the business bankruptcy options have become outdated. The Bankruptcy Code is 34 years old, and as both personal and business finances have evolved in that time, many think the code could stand a few reforms.

We have previously discussed the call for the laws to be updated in order to discharge student loan debt in personal bankruptcy filings. Bankruptcy industry professionals are now also calling for reforms to the Chapter 11 process.

Hudson residents who are struggling with debt may feel like they are constantly juggling credit card bills, mortgage payments, car loans and student loans. For many people, it is simply not possible to keep everything in the air at once and they have to prioritize which bills will get paid on time.

According to a new study, many Americans are grappling with this balancing act, and the majority chooses to pay their car loans sooner than credit card bills or mortgage payments. The study, performed by a credit information company, reviewed the debt of 4 million Americans and found that of those who had at least one car loan, one credit card and a mortgage, only 10 percent were late on their car loan.

Wisconsin residents who are busy questioning whether to save or spend their tax refunds are in a nice predicament. Other people are wise to choose between different options: either pay down a difficult, but manageable, debt or use it to start anew with a bankruptcy filing.

According to new research from a variety of prominent universities, bankruptcy filings increase when Americans begin to receive their tax refunds. In 2008, bankruptcy filings rose by 7 percent after tax refunds were distributed, according to the study. The reasons behind this, according to researchers, relate to families needing the tax refund to pay some of the fees associated with bankruptcy.