Bankruptcy Questions

Bankruptcy questions and answers may be found online. Sites on the Internet provide frequently asked questions with answers on common questions concerning bankruptcy. Some sites offer free evaluations based upon one's unique circumstances. Using the Internet to obtain advice might include a discount toward services through some sites. Understanding one's rights when considering bankruptcy is important. Pray about the situation. There are alternatives other than filing. Find out what all your options are. "Then she came and told the man of God. And he said, Go, sell the oil, and pay thy debt, and live thou and thy children of the rest" (2 Kings 4:7).

Consumers often find themselves with questions when financial burdens become too heavy to bear. Being unable to meet monthly financial obligations due to job loss, job change, or medical problems, among other reasons may create a situation when bankruptcy advice might be something to seek. Once behind on monthly obligations it may seem almost impossible to catch up again, especially if monthly income has been reduced. Information will include understanding differences between filing Chapter 7 and Chapter 13. One of the common reasons to seek bankruptcy advice might include high credit card debt. Consumers are easily persuaded to get numerous credit cards. In time, the balances grow just as much as the limits. Chapter 7 will usually allow the consumer to write off credit card debt. Advice from legal specialists online will be able to answer most bankruptcy questions you may have.

Personal assets are generally protected under bankruptcy laws. Each state determines the amount of personal property consumer's may keep when filing. Personal assets protected usually include clothes, furniture, appliances, ordinary household goods, and personal effects. Equity in your home and life insurance may also be exempt under the law. Seeking advice will answer bankruptcy questions concerning personal property and exemptions when filing. If the court finds that the consumer filing Chapter 7 may be able to pay debts over a reasonable amount of time then Chapter 13 might be necessary. Legal specialists should be able to determine which Chapter is best for you.

A secured debt may need a reaffirmation of debt between the debtor and creditor. The court will determine if the reaffirmation puts undue burden upon the debtor. A reaffirmation may include a home mortgage or an auto loan. Should you reaffirm debt? Ask your attorney about reaffirming debts when seeking bankruptcy advice. It may depend upon your ability to repay the debt. Reaffirming may not be necessary if the consumer is current on monthly payments with the debtor in question. If the debt is reaffirmed both the creditor and the debtor have to sign a reaffirmation agreement.

Some debts are not dischargeable under Chapter 7. These types of debts might include student loans, alimony, spouse support, and child support. Income taxes may or may not be dischargeable through Chapter 7. It seems to depend upon each consumer's unique situation on whether income taxes can be discharged. Some debts may be discharged through the court based upon hardship provisions. When inquiring, find out if the situation might include hardship provisions.

If you have a home and are trying to stop foreclosure then Chapter 13 would be the best way to file. When seeking bankruptcy advice on foreclosure, a consumer will find that it is necessary to eventually catch up on payments that are behind. The default on the loan has to be cured. Under Chapter 13 the debtor must file a plan on how the debts are going to be repaid. The plan must also include attorney's fees. When seeking legal counsel on Chapter 13, there is a lot to consider based upon individual circumstances. Make a list of questions before seeking bankruptcy advice. Many times questions will lead to more questions. You may find that there are other alternative through research. Sometimes just living on a budget might be all that is needed to catch up on debts.

Additional bankruptcy questions that one might ask are: How will the Chapter 13 or Chapter 7 affect my credit? Bankruptcy on your credit may mean paying higher interest rates for future credit purchases. Usually filing bankruptcy will not prevent one from buying a home within a couple of years after filing. Most creditors want to see that your credit is reestablished and current obligations are being met on a timely basis. Going bankrupt will stay on your credit report for 7 to 10 years. However, once engaged in proceedings, creditors can no longer harass you legally. Legal specialists can put a stop to harassing phone calls, wage garnishment, foreclosure, and lawsuits. Consider other options before filing, though. Seeking counsel is important and finding out other options will help one in making an informed decision. Consider debt consolidation through a credit agency or taking out a home equity loan to pay off debts.

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