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.
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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.
What happens if you miss a Chapter 13 bankruptcy payment?
if you have a legitimate financial emergency that prevented you from paying, the court typically will allow you time to catch up or restructure your payments
How do you decide if Chapter 7 or Chapter 13 bankruptcy is best?
Chapter 13 Bankruptcy can be used to pay missed mortgage or car payments over time
When can you file for bankruptcy after a previous discharge?
Federal laws do limit what kind of bankruptcy you can file based on your economic circumstances and also how frequently you can file.
Bankruptcy after a divorce may help gray divorcees
Sometimes, going through your divorce first is the right option, so that you can see if you end up with debts that you may have shared with your spouse or that your spouse created in their own name while married. The financial devastation that a divorce can cause is hard to recover from at such a late age, but a bankruptcy could offer a helpful solution.