Financial problems these days are very common and you shouldn't be ashamed of admitting your too far into debt. Outstanding debts can occur in a variety of different ways. You could be swamped with overwhelming medical bills, laid off from work, or worse. Financial troubles loom everywhere, but luckily theres still one way out If your in too deep. Knowing when and when not to file a bankruptcy can sometimes be tricky, but maybe I can help.
If your just overwhelmed with debt and can no longer pay then bankruptcy is definately an option for you. When you file a bankruptcy to wipe your debt completely clean its called a 'discharge of debt'. Discharging your debt will start you over with a clean slate. It doesn't matter if you file a Chapter 7 or a Chapter 13 bankruptcy both will wipe most, if not all, of your debt out.
If you can no longer pay your mortgage and your house is up for foreclosure then bankruptcy is a viable option for you. A bankruptcy can help stop the sale of your house, but it will not wipe out the debt owed on your current mortgage. What a bankruptcy will do for your mortgage is help create a repayment plan for the payments your behind on.
A bankruptcy can also help keep your car and various other pocessions from being repossed. If your car has been repossed already by the bank, a bankruptcy can force the bank to give you back your car. Unfortunately this is only the case if you file the bankruptcy quickly enough after your car is repossessed. Any debt you own for these items will then be consolidated into a 'bankruptcy plan'. A bankruptcy plan means, that a bankruptcy trustee will be directly responsible for your debt, and all your payments will be paid to them instead of to the finance company. A bankruptcy plan is made to be in your best interest.
If you plan to file a bankruptcy because of medical bills then that may be a good option. Whether you were in the hospital for a major illness, or from a car wreck, or whatever, sometimes your medical bills can pile up to an exponential amount. If you can no longer afford to pay these bills then a bankruptcy can dramatically reduce your medical bill debt.
One of the major reasons people file bankruptcy is because loss of work. People easily become comfortable with their spending habits at the income their making. Sometimes the unthinkable occurs and you lose your job. The bills can quickly pile up. Often times this is compounded with medical bills also since a lot of people can no longer work because of medical reasons.
If you have an incredible amount of debt, don't be afraid to ask for a little help. Filing a bankruptcy can repair your financial burdens and get you back on your feet.
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Frequently Asked Questions
My hun%@aol.comsband and I filed chapture 13 and ...
By: alb | 15-08-2008
My hun%@aol.comsband and I filed chapture 13 and have not been able to keep up with the repayment plan and are now behind. We filed chapture 13 because we owned a home. At the hearing we told our lawyer that we could not afford to keep the home. He said go on with the bankrucy as is and deal with it later, that was a year ago . We lost the house 4 months ago and now have rented (rent are very high here because so many people are losing their homes) an apartmnet. My husbands earning have been going down and I am retire. We can not keep up with the payments. We find it hard to pay the daily living bills and now the creditors are starting to call again. My husband has told the lawyer and trustee that we can't afford to do the monthly payment. They just keep telling him to try. Is there any thing we can do. I don't know what to do or where to go.
I am going through bankruptcy (3 yrs) and my ...
By: Jody | 09-08-2008
I am going through bankruptcy (3 yrs) and my landlord has asked me to move, i was told that it is a state law that she cannot put me out until i have completed my bankruptcy course (7 yrs.)--Is this true?
Sister
Should I declare bankruptcy?
By: snoopy52 | 07-08-2008
We need assistance in someone to tell us what to do. I am in the middle of a break up/divorce after 11 years. We have been together that long, just never got married. We have a combined est amount of $15k in credit card debt and about $265k in home loans for the 1st and 2nd mortgages. The house is worth about $240k according to the few agents I have spoken to. We are trying to figure out which option is best for us. Should we just do a bankruptcy thing and let the house go and get the credit cards written off or should we do a short sale and then get a personal line of credit to separate the credit cards and just pay that off over the next 8 to 10 years. If we do bankruptcy, how long will it take to get our credit ratings back up? I am open to either a short sale or bankruptcy, just trying to figure out what is best in regards to getting this mess behind us and what would be best for our credit score.
Can a debtor file a bankruptcy for the sole ...
By: lelandwmckee | 07-08-2008
Can a debtor file a bankruptcy for the sole purpose to eliminate "one" judgment against them or this is the primary reason they filed? Wouldn't this constitute fraud of the bankruptcy system?
Can a creditor take you to court 6 years after chapter 7 bankruptcy was dismissed?
By: flyer | 07-08-2008
If you file chapter 7 and it is discharged can a creditor who sold their company to another take you back to court for the debt claimed on the bk?
Doesn't the 'community' dissolve when the marriage does?
By: RjPixie | 06-08-2008
In a community property state isn't the community dissolved when the marriage is dissolved? If so, then why and how would one spouse who is now sole and separate be responsible for debt of the other spouse which is now also sole and separate (not including any debt that the former couple both signed on of course)?
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