Tag: file for bankruptcy

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Bankruptcy Legal

What Bankruptcy Can and Cannot Do

What Bankruptcy Can and Cannot Do

You’ve pulled the plug and filled for bankruptcy, attempting to overcome the massive debts placed on you. Still, even bankruptcy has its limits, and you need to figure out what you can and cannot do. Using bankruptcy to combat your debt can work, especially if you are besieged by collection calls and lawsuits.

There are two common chapters of bankruptcy. Chapter 7 allows you to liquidate some of your property or assets to gain some cash. Chapter 13 puts you on a payment plan to make sure that the debts can be paid over a few years. Each plan has different benefits for you, and here’s what filing for bankruptcy can mean for you.

What Does Bankruptcy Do?

Bankruptcy can stop collection calls, garnished wages, and lawsuits. It can also stop various types of debt, with some exceptions. While credit card debt, medical bills, and personal loans can all be stopped, you will still need to pay some debts regardless of the plan you pick.

You can file Chapter 7 or Chapter 13 bankruptcy, and they will help you wipe out your debt. Even with different benefits and drawbacks, the most important thing to know is that they give you all the tools to manage your debt.

Bankruptcy also stops the harassment from creditors using an ‘automatic stay’ put in place by the court. This stops creditors from coming after you and puts a freeze on lawsuits and wage loss. It can also temporarily freeze an eviction, repossession, or foreclosure on a piece of property.

Depending on which chapter you get, you can either create a payment plan to handle the debt. You can also liquidate some of the assets. Either way, you’ll be able to pay off the frozen loans and potentially remain in the house without an eviction.

What Can’t It Do?

Bankruptcy, as powerful as it is, is not a cure all for your debt woes. For starters you will need to pay required payments such as child support and alimony, and you won’t be able to stop the foreclosure of a property that you cannot reasonably afford. The creditor can still take a lien where they can sell the property at auction and that money goes towards your loans.

Student loans also can’t be eliminated unless you can prove that you will have ‘undue hardship’ by repaying them. It’s a tough standard to be qualified for, and you will need to prove that you can’t pay for your loans now or in the future.

Tax debts and other nondischargeable debts cannot be paid off as well, and they will either stay with you or you will pay them in full through the repayment plan. This depends on which chapter you file for.

Bankruptcy is a powerful tool, but it does have its limits for your business. Make sure to talk to an expert before filing, and you will be able to get a clear picture of how bankruptcy can help you.

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Bankruptcy Legal

Bankruptcy: Chapter 7 & Chapter 13

Bankruptcy: Chapter 7 & Chapter 13

Whenever you need to file for bankruptcy, it can be a terrifying experience for you. Not only do you need to go through the stress and frustration of the ordeal, but you also need to do it right. There are several different types of bankruptcy, and two of the major types are Chapter 7 and Chapter 13.

These legal options for your bankruptcy are both able to take on your debt, but both of them have consequences for you. It’s important to understand them before you take steps into filing for bankruptcy. Each one has it’s benefits and drawbacks, as well as long term effects on your life. Make sure to keep all of that in mind as you examine the options.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is called liquidation. It helps you by having you surrender some property or assets that can be turned into money. If you have no disposable income on hand to handle this massive debt, then you can file chapter 7. If your debt is discharged by chapter 7 bankruptcy, then you don’t have to pay that debt back. The money can then go somewhere else, and most debts can be discharged with few exceptions.

Filling can also increase the speed at which you overcome your debts, and can also stop debt collectors from taking action against you. That is very appreciated for people who are debt ridden, and it only takes around 100 days to finish. Your assets and credit will take a hit, but you will be debt free.

What Is Chapter 13 Bankruptcy?

If you want to file your debt but wish to keep your property, then you can file for chapter 13. If you have disposable income on hand, then this is right for you. It will stop any foreclosure processes on your home, and will allow you to get a handle on your mortgage payments. It also stops your debts from being collected if they are discharged under chapter 13.

Chapter 13 also allows you to make consolidated monthly payments with a solid 3 to 5 year plan. You will know exactly what to pay, and when you need to pay it. It is not as fast as chapter 7 bankruptcy, and can strain your budget. However, if you can keep up with the plan, you will be able to keep your property throughout the process.

Picking The Right One

If you are still undecided about which one is the best for you, then you should try to talk to a lawyer and see if they can help you make your choice. They will have your best interests at heart and will be able to answer any questions that you have. Filing for bankruptcy is something that is tough for every single small business owner, but you need to make sure that you are completing the process. By examining your situation before you start the filling process, then you can make the best decision.

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Bankruptcy Debt Financial Legal

Can I File For Bankruptcy Online in 2021?

Can I File For Bankruptcy Online in 2021?

The internet is the height of convenience. Despite all the complaints we might have about technology, one thing we can admit is that being able to handle all of your expenses from the comfort of your desk is no small luxury. But can you make a big financial like bankruptcy online? Is it possible to file for bankruptcy over the internet?

In this article, we’ll discuss what your options are when considering whether or not you can file for bankruptcy online. By the time we’re done, you’ll hopefully have all the info you need to make the right call.

Can You File For Bankruptcy Online?

For the most part you can file for bankruptcy online. There are a few caveats, as there are with really any big decision, but you likely won’t have trouble finding ways to make such a difficult decision with at least a little bit of comfort and confidence.

With your computer, you can do a number of things related to bankruptcy. For one, you can, in fact, receive bankruptcy filing forms and any local documentation relating to your application for bankruptcy. This takes a lot of the stress of gathering documents and filing papers out of the task.

You will also be notified about the progress of your bankruptcy case over the internet. Your bankruptcy court will send you email updates stating the important facts of your bankruptcy case. This will help you track your financial situation and get a hold on where you are.

After your bankruptcy is filed, you may also be able to check on how your repayment plan through the internet. While this feels more like a chore than a privilege, it will help in the necessary budgeting process that will come during your recovery phase.

You Cannot Do the Actual Filing

Unfortunately, most of us will have to do the actual, physical filing part of filing for bankruptcy in an actual, physical setting.

There may, however, be places where the filing process can be done completely online. This will depend on the district your filing in and the rules and regulations it has decided upon in the past.

If you’re unsure of the rules in your district, it might be good to consult a financial professional. The may be able to help you jump through all the hoops when filing bankruptcy and advise you on recovery afterwards.

Trustees also might not be so hospitable to the idea of going paperless. While many districts have discussed moving in a more electronic direction, the trust that floats around the idea of the hard copy filing process is just too big to overcome for most trustees. This is why hard copies may still be required here.

Any fees related to court filing are also usually not offered on an online basis.

Thus, there’s a lot of the process you can do online, and a lot that you can’t. You will be able to do a lot of the filing documents electronically, but submitting them and onward will be a physical process.

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Bankruptcy Legal

Bankruptcy: The Ultimate Guide

The Ultimate Guide to Bankruptcy

When disaster strikes and you suddenly find yourself unable to meet your financial obligations, there may be ways to alleviate some of the pain. Of course, they won’t be painless in themselves, but they might just be a better decision than choosing to trudge onward with your current obligations. Bankruptcy is one of those ways.

Bankruptcy is a way for people who can’t meet their obligations to start to dig themselves out of the circumstances they find themselves in. It’s not a beneficial move in itself, and it certainly won’t feel good, but plenty of people find it to be their next best option.

So, how do you go about filing bankruptcy? When should you do it? In this article, we’ll talk all about how you should approach bankruptcy- a difficult topic indeed.

When to File

If you’re considering bankruptcy, but don’t know if your circumstances are dire enough to file, consider just a few recommendations.

Those considering bankruptcy should be unable to mee their financial obligations. When you can’t meet your debt, you may start to fall behind. This could put you in a hole you might not be able to find a way out of.

Some of these debts might be unsecured debts, which may mean that your home is in danger. Bankruptcy may help you maintain the equity you have placed in your home.

Bankruptcy is for times when finances go into a tailspin. If you see any semblance of a way out, it might not be so good to go the bankruptcy route. Keep in mind- many times average people’s judgements aren’t so finely tuned for financial matters. You should consult a professional if your circumstances are in such dire straits.

Possible Penalties

Unfortunately, the penalties for bankruptcy are significant, and should be considered closely before any commitment is made. Bankruptcy is not a thing you enter into lightly.

If you declare bankruptcy, that stain with stick with you for at least a good ten years- or one eighth of the average person’s entire life! The information on your bankruptcy will go to credit bureaus and will be taken into account for future dealings.

Not only will your bankruptcy reflect in your credit score when you attempt to pick up new debt, but you will also not be able to file bankruptcy for another 8 years. This means that whatever deals you make, you’re going to be stuck with.

Recovering From Bankruptcy

If you’ve had to file bankruptcy and suffer the penalties, there are ways to recover. For one, make sure you listen to any advice you receive in credit counseling sessions. These institutions are in place for a reason, and you can learn a lot about getting back on your feet.

You should also get your financial life in line. It’s a hard pill to swallow, but going credit-free and establishing money management strategies will put you far ahead of the game and could even put you on the path to as much of a financial recovery as you can make.