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May 2013 Archives

Supreme Court finally defines 1841 bankruptcy term 'defalcation'

Did you know that you can be prohibited from filing for bankruptcy if you're found to have committed defalcation? It's true -- although the term had never actually been defined until now. On Monday, the U.S. Supreme Court took up the issue and defined the term in a unanimous ruling.

Report: payday loans triggered $169 million in Chapter 13 filings

Using public data from the Consumer Financial Protection Bureau, a recent report by the Insight Center for Community Economic Development determined that the high fees and harsh contract terms for payday loans pushed so many people into Chapter 13 bankruptcy in 2011 that they cost the U.S. economy $169 million. Even without the bankruptcies, however, the cost to the economy from these loans was $774 million.

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