In order to rid yourself of debts there is a legal option available to either discharge or consolidate and lower your debt. This legal option is called bankruptcy. Although the word bankruptcy may bring a negative connotation or thought to mind, rest assured, it is not as bad as you think and many people do it everyday.
In the past, there was a stigma attached to the filing of a bankruptcy. You can obtain credit in the future and go on to purchase a home or vehicle after filing bankruptcy. Because the world we live in now is quite different than it was generations ago, credit cards and debt has become a necessity for most people to simply afford normal living expenses such as gasoline, groceries, clothing, prescriptions and doctor visits. While prices for these goods or services constantly increase most people's paychecks don't.
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But once someone realizes the debt has grown larger than they can handle and they are ready to deal with the nightmare that comes with not paying your bills they can take that step towards financial freedom with the help of federal bankruptcy laws.
There are two different chapters an individual consumer (debtor) may consider when filing bankruptcy. Chapter 7 is the chapter most people are familiar with and that is the type of bankruptcy you file to get rid of (discharge) your debt. While not all debt is dischargeable, most is. Student loans are typically non-dischargeable, meaning you will not get rid of erasing this debt in a bankruptcy. With a chapter 7 you start all over. If you wish to keep a financed vehicle or house through a chapter 7 you should be on time with all those payments.
When you are behind on payments for a house and/ or a vehicle you may wish to consider filing a chapter 13 bankruptcy. The chapter 13 is a debt repayment plan whereby you do not erase all your debt, like the chapter 7. The minimum amount of time you have to be in the repayment plan is 36 months and the maximum is 60 months (5 years). You may be able to get rid of a significant amount of your unsecured debt in a chapter 13, but to keep a secured item (like a house or car) in which you are behind in payments you will pay to keep the secured item. This can be done by paying all payments you are behind on in your chapter 13, paying fair market value for the object in your chapter 13 or paying the full balance you owe on that object in your chapter 13.
As soon as your bankruptcy case is filed federal laws protect you and creditors can not call you, send you letters or contact you in any way. Also, once your case is filed creditors can no longer sue you or garnish your wages. Your total household size as well as how much money you make and live on also determine whether you are eligible to file a chapter 7 or whether you have to file a chapter 13.
There are time lines as to how often you can file bankruptcy. It is a good idea to consult with a bankruptcy attorney if you have filed bankruptcy in the past and need to file again!
If you think you are ready to make a fresh start for your financial well being consider taking the time to contact a bankruptcy attorney. This could be the answer you have been looking for!
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
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