If you find yourself facing overwhelming debt and you’re considering using bankruptcy to get out of it, are you the one who put yourself in this position? Probably not.
Is a need to file for bankruptcy your fault?
read more
robbraverman
FILING AN EMERGENCY BANKRUPTCY PETITION
While filing a bankruptcy generally requires that you provide your attorney a lot of infomation regarding assets, liabilities, income and expenses along with doscuments like paystubs, bank statements and tax returns, and that you complete a credit counseling course that takes approximately one hour, it is still possible to file a Chapter 13 to stop the sheriff sale by filing an emergency (skeleton) petition and schedules.
3 reasons credit card settlement can do far more harm than good
Although it may feel extreme, filing for bankruptcy is often the best solution when your debt has reached truly unmanageable levels. Learning more about the basics of bankruptcy and the problems with different credit card debt solutions can help you make better financial choices.
3 things people should know about the Chapter 13 repayment plan
Some people will file for Chapter 13 bankruptcy because their income is too high to qualify for Chapter 7 proceedings or because they have valuable property that they don’t want to risk losing in the bankruptcy process. Chapter 13 Bankruptcy does not require the liquidation of your personal property but will instead necessitate a repayment plan.
Will bankruptcy leave you with nothing?
With Chapter 7 bankruptcy, the goal is to eliminate the debt. Typically, the person filing does not lose any assets. Occasionally someone will file knowing they will lose an asset but decides to file anyway because of the amount of debt they owe and they cannot afford to pay the equivalent value of that asset in a chapter 13.
WHERE YOU LIVE CAN IMPACT THE TYPE OF BANKRUPTCY YOU CAN FILE
Where you live can impact the type of bankruptcy you can file. That is because several years ago, Congress determined that in deciding whether a debtor can wipe out their debt entirely or must pay some of the debt back, there should be more focus on a debtor’s income
The pros and cons of credit cards and bankruptcy
Credit cards can have a major impact on both the need to file bankruptcy and your ability to improve your credit score after bankruptcy.
Can bankruptcy help with student loans?
It should be noted that Chapter 7 and Chapter 13 bankruptcy doesn’t generally discharge Student loan debt, although there are exceptions for Undue Hardship. In addition bankruptcy can impact certain private student loans. Chapter 13 can also be used to hold off on student loan collection during the five year chapter 13 plan.
A balance transfer will not solve your actual debt issues
Instead of just moving the debt you owe from one company to the other and increasing the total amount you have to repay while you do so, it may be a better option to simply eliminate your unsecured debt. A successful personal bankruptcy filing will end in the discharge of your unsecured balances.
Tips for rebuilding credit after bankruptcy
It’s important to clear this up because bankruptcy certainly does not ruin your credit forever and you can absolutely get loans and lines of credit in the future.
