Chapter 7 bankruptcy and Chapter 13 bankruptcy are two common legal options with different consequences, but both are helpful for borrowers who have accumulated too much debt. Chapter 7 bankruptcy can help clear some or all of the debt. However, if you file for this type of bankruptcy, you will have to surrender assets such as cash or property. Chapter 13 bankruptcy helps you get some of the debt discharged, but you get to keep your property, and you can repay your debts through a repayment plan. If you have accumulated too much debt and want to file for bankruptcy, you would want to determine which type of bankruptcy would be right for you. We will help you with this.
Bankruptcy is most often the last resort for people who have nowhere to turn to and no protection against the creditors that are coming after whatever they have left. In a lot of cases, it’s a burning bridge kind of strategy. But even in the worst-case scenario, it offers you a chance to start anew. And more importantly, it pulls you out from the strain caused by constantly harassing creditors.
When you are burdened with debt and the creditors keep harassing you and asking for their money back, you might have no option but to file for bankruptcy. When you take this action, an automatic stay is ordered by the court. This stops civil lawsuits that are filed against you as well as specific collection actions that are being taken against your property by a government entity, collection agency, or a creditor.
Thinking about buying a car after bankruptcy? Well, getting approved for a loan might seem impossible since bankruptcy can stay on your credit report for at least seven years. However, there is still hope because there are lenders out there who work with people who have a bankruptcy on their report. The caveat, however, is that your interest rate will be very high. Saving some cash for a down payment and improving your credit by making timely payments may help increase your chances of securing a car loan.
Most people don’t file for bankruptcy because they want to avoid its detrimental effects on their credit. Bankruptcy stays on the credit reports for a maximum of ten years, and it can seriously hurt your credit. However, if you don’t file for bankruptcy and let your debts go to collections, it will also negatively affect your credit. Whether you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, your credit score will decrease from 160 to 230 points. Since
Sometimes the story doesn’t end when a bankruptcy case is decided and the discharge is granted. A court may reopen a bankruptcy case once a request is made. In this article, you will learn all about reopening a bankruptcy case, who is eligible to request it, and common reasons why someone may choose to do so. Continue reading.
During a bankruptcy case, the court may ask you to report any transactions that you made to ‘insiders. The status of bankruptcy insider means that the person or entity was or is in a close relationship with the debtor and holds sensitive information about them that may be of critical importance during the bankruptcy case.
Life in the United States is tough for the general public. Not everyone has a six-figure salary and can afford to keep paying bills on time. Many people are troubled by debt resulting from credit cards, home loans, student loans, car loans, etc. Debt keeps mounting, and there comes a time when a person has …