When you lose your job, suffer an injury in an accident or simply find yourself with mounting bills you cannot pay, it is difficult to see the way to a brighter financial future. Fortunately, for many who deal with the smothering weight of overwhelming debt, bankruptcy is a viable alternative to suffering under the harassing calls of creditors.
A bankruptcy is designed to help you get out from under your debts. In a Chapter 7 bankruptcy, the trustee cancels many of the debts. You may have to liquidate some property to repay your creditors, which is why a Chapter 7 is often referred to as a liquidation bankruptcy. In a Chapter 13 bankruptcy, your debts are "reorganized." You pay debts in a plan over three to five years. Which bankruptcy is right for your situation depends on a number of factors, such as the amount of debt you have and your income.
When hard times hit, many people are forced to turn to payday loans and credit cards to get by. Once this process begins, it can be difficult to stop. Interest builds and as the number of payments increase, there is less money left to pay out, leading to a downward spiral that has pulled many Americans into a seemingly hopeless position. Often the only choice available when this point is reached is to file for bankruptcy to get a clean start and try again. The question that remains is whether or not to hire an attorney.
There are a number of misconceptions about bankruptcy that often leads people to make uninformed decisions. You might, for example, assume that you are not eligible and neglect to pursue it. On the other hand, you might be wondering if bankruptcy will allow you to absolve all debts. The following five types of debt are typically not eligible for forgiveness under the terms of a bankruptcy agreement.
If you are in debt and struggling to find a solution, chances are you have at least thought of bankruptcy. Perhaps it has been a fleeting thought, or maybe it has been a consistent subject of your consideration. No matter where you currently stand on the issue, you could likely benefit from better understanding what exactly bankruptcy involves. Most people have at least some misconceptions, and these four myths are ones that can easily be dispelled.
People file for bankruptcy for many reasons. For example, they may have obligations such as past-due federal tax that they are struggling to pay. However, there is no doubt that medical debt is a common cause of bankruptcy, although the exact math remains fuzzy. Here is a review of why a strong relationship exists between bankruptcy and medical debt.
While the act of declaring bankruptcy can bring financial relief, the process leading up to it can have stressful moments. One of those difficult times can be the meeting of creditors, although there is usually no reason to be concerned. In the meeting, a trustee ensures all paperwork is accurate and that there is no bankruptcy fraud. To help the process go smoothly, there are many things you should do to prepare.
If you are considering bankruptcy, you need to determine the best option for your situation. Deciding bankruptcy is the correct way to resolve your financial turmoil is a serious decision. Chapter 13 bankruptcy, also known as a wage earner's plan, could be the right choice for you if you are eligible and weigh the benefits. Before you make your final choice, learn how filing chapter 13 bankruptcy could work for you.
Medical debt is a common reason people find themselves in severe financial turmoil. Overwhelming medical bills can pile up due to longer-term treatments and sudden illness or injury. Some people falsely believe that medical debt can't be eliminated through bankruptcy, but bankruptcy relief can wipe out your medical bills.
The car engine breaks and you have no way to get to work. Panic sets in because you finally got a second chance by filing for Chapter 13 bankruptcy and now you cannot make your payments. Car accidents and lost jobs happen but you do not need to panic because there are solutions. If you are unable to make your Chapter 13 plan payments then consider these four options.