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How Does PG&E Bankruptcy Affect Consumers?

Pacific Gas and Electric (PG&E) announced its intent to file for Chapter 11 bankruptcy next week, primarily due to the costs and liabilities stemming from the 2018 Camp Fire and 2017 Napa and Sonoma Country fires. What should consumers expect from this filing? Will PG&E still be held accountable for the fires it started? Or will consumers ultimately pay the price?

Will Bankruptcy Stop Foreclosure?

Foreclosure and bankruptcy are two words no homeowner ever wants to hear. But when you've given it your all, the only thing you can do is find the next best thing. Here are a few tips to consider.

Nobody really wants to file for bankruptcy. But being in financial dire straits can be a truly frightening experience for anyone, and one to be avoided at all costs. Many people who might qualify for bankruptcy try to put off filing for as long as possible, perhaps out of an innate optimism about their financial future or due to the stigma attached to declaring bankruptcy.

But putting off bankruptcy may actually be more fiscally risky than filing, so when is it too late for you to file for bankruptcy?

When debt becomes overwhelming, bankruptcy becomes an option. The idea behind bankruptcy is that some of your debt is erased to allow you pay for essential life expenses or repay other debts. The key to that last sentence is “some of your debt is erased.” Not all debt is dischargeable in bankruptcy, and which debts are dischargeable may depend on what type of bankruptcy you’re filing.

So how do you know which debts will be dischargeable in bankruptcy, and how do you differentiate between dischargeable and non-dischargeable debt? Find out below.

Like our annual tax filings, the majority of us want to avoid a bankruptcy filing like the plague. But, just like the tax system, there are those among us that try to game the bankruptcy system to their advantage. And bankruptcy courts, just like the IRS, will occasionally audit filings to weed out fraud and misrepresentations.

While not all bankruptcy filings will be audited, the possibility that your Chapter 7 filing might be is a powerful deterrent to fudging any numbers regarding your assets or your income. Here's what you need to know about a possible Chapter 7 bankruptcy audit.

Whether you're looking forward to debt relief or can't wait to be free from a previous filing, one of the biggest questions involving bankruptcy is: How long is this going to take?

Unfortunately, there's no definitive answer. How long your bankruptcy case will take, from filing to debt relief and beyond, can depend on a variety of factors, including the type of bankruptcy filing and your specific kind and amount of debt. Here's a look at those factors, as well as a general bankruptcy timeline.

People who have been sued will often ask their attorneys if their assets, income, and money in the bank can be taken from them due to the lawsuit. Unfortunately, after a court judgment has been issued against a person, the court can then order enforcement of the judgment. If you don't have the cash on hand, or insurance, to cover a judgment, court ordered enforcement is a possibility.

But if a person is "judgment proof," a court judgment could be worth less than the paper it's printed on. Unlike a bankruptcy which can discharge a court ordered debt or judgment, being judgment proof essentially renders a court ordered debt worthless, unless circumstances change.

Generally speaking, creditors in a bankruptcy case are not going to be sentimental about where their payment comes from, and they will gladly take whatever compensation they can get from you, regardless of the source. That said, creditors do not have access to all of your assets -- some of your property can be classified as exempt from being used for debt repayment.

But does that include an inheritance? If Uncle Joe just passed and left you some money, can a court take that money and pass it on to your creditors? And does it matter if he died before or after your bankruptcy filing?

Nobody wants to file for bankruptcy -- it can be a disheartening and complicated process, both legally and emotionally. But sometimes it may be the only option for escaping the most crippling debt and rebuilding your financial future.

There are many life scenarios that might lead to personal bankruptcy, different types of bankruptcy to file, and a series of legal hurdles along the way. Here are a few of the basics of personal bankruptcy.

Any time a person files for bankruptcy, federal courts will apply a means test to see if the debtor qualifies for Chapter 7 bankruptcy. The first step in that test is to compare the person’s average monthly income for the six months preceding the filing to their state’s median family income. If your monthly income exceeds the state median, you may not qualify for Chapter 7.

And any time there is math involved, a calculator is sure to follow. Here are the numbers that you need to punch into a Chapter 7 means test calculator, and where to find them.