Filing for bankruptcy is a very serious decision, and one you shouldn’t make alone. However, it’s important not to let the stigma of bankruptcy dissuade you from seeking help. Filing for a Chapter 7 or Chapter 13 bankruptcy can help you manage your debt and set your life back in order.
One of the largest advantages of bankruptcy is the plan itself, which establishes set payments that make your monthly bills more manageable, and eventually allows you to eliminate certain types of debt altogether. The lesser known benefits of bankruptcy include eliminating some property liens and putting an immediate stop to harassing collections calls.
Over time, making consistent payments to your bankruptcy plan can help to improve your credit score. Completing your bankruptcy will eliminate a significant amount of debt on your report and help to improve your debt to income ratio.
Chapter 7 bankruptcy is also known as a liquidation bankruptcy or “discharge”. Chapter 7 is designed to free the debtor of his unsecured consumer debt, and allow the debtor to decide whether to keep or dispose of secured debt. It is typically referred as a “fresh start”. Read More
Chapter 13 is commonly referred to as a “reorganization”. The debtor enters into a payment “plan” that is designed to pay a portion, or all of the individual’s debt. A Chapter 13 may be preferable to a Chapter 7 in instances where the debtor wants to save their home from foreclosure. Read More
If you have been to see an attorney regarding a possible bankruptcy filing, you have likely been told to consult a counseling agency and arrange to take two separate online courses. Read More
Contrary to what you may believe, filing for bankruptcy does not automatically erase all liens on your property. Whether or not you can avoid a lien depends primarily on what form of bankruptcy you are filing. Read More
If you are currently enlisted in the military, including branches like the National Guard, or if you are a veteran or wounded in action, you may be entitled to certain exemptions and special requirements when filing for bankruptcy. Read More