Top Ten Reasons People File for Bankruptcy
1. Eliminate the Legal Obligation to Pay Many of Your Debts.
This process of wiping the slate clean is called a discharge of debts. The goal of a discharge is to reduce debt to give you a fresh start. Whether it is through straight bankruptcy (Chapter 7 Bankruptcy) or through reorganization (Chapter 13 Bankruptcy), most or all of your debts can be cleared.
2. Stop Foreclosure on Your House and Allow You to Effectively Make Payments to Catch up on Missed Payments of Your Mortgage.
If your home is in foreclosure, Chapter 13 Bankruptcy will stop the foreclosure any time prior to the sale. Bankruptcy does not eliminate mortgages on your property without payment. Rather, bankruptcy will structure a plan in order to repay your mortgage arrears (the amount that you are behind).
3. Prevent Your Car or Other Property From Being Repossessed.
Even if the creditor has repossessed your car, filing bankruptcy can effectively force them to return your car or other personal property (if the bankruptcy is filed quickly enough). The past payments you have missed will be consolidated into your Chapter 13 Bankruptcy plan. After this you will no longer pay the finance company, rather you will make monthly payments to the trustee of your Chapter 13 Bankruptcy who will then pay the finance company.
4. Reduce or Even Eliminate High Medical Bills.
Sometimes an unfortunate accident or major recently discovered illness can completely ruin a family. Many families have to make choices on allocation of bills. Often, bills that were once important become insignificant to the large medical bills acquired by a loved one. Filing Chapter 7 Bankruptcy can greatly reduce the amount of medical bills.
5. Recent Loss of Employment.
Studies show that loss of work is one of the most common reasons people file for bankruptcy. This is very easy to see. A family can get comfortable on two maybe even one salary. They can take on regular amount of debts, join clubs, and pay normal bills with relative ease. All of a sudden one or both spouses lose a job and a family must go from two salaries to one. Losing a job is closely tied to high medical bills. Losing a job means this family may be left without the protection of insurance that was once provided by their employer. Often times these two factors combined create an almost impossible mountain to climb without the help of bankruptcy.
http://www.bankruptcyhome.com/top10reasons.htm
Thursday, May 24, 2007
Top 12 Signs You Need To Talk To A Bankruptcy Attorney
The first step to overcoming a debt problem is recognizing it. If worries about your credit cards and loans are keeping you awake at night, you probably already know that you're in over your head. But if you've been cruising along, juggling credit cards and happily spending, you may not yet realize that you're on a dangerous path. If you find yourself in any of these situations, think seriously about addressing your debt.
1. You routinely spend more than you earn.
2. You make only the minimum payment required on your credit cards.
3. Your credit limit is maxed on most of your cards.
4. You're unsure about how much you owe or what may be on your credit report.
5. You skip payments on some bills in order to pay others, or use cash advances on one credit card to pay off another.
6. You skip payments on some bills in order to pay others, or use cash advances on one credit card to pay off another.
7. You find yourself arguing with your spouse about money. Or, you're are afraid to talk to your spouse about money at all.
8. You've recently been turned down for credit or a loan.
9. You panic when faced with an unexpected expense, such as a car repair.
10. You owe more on your car than it's worth.
11. Creditors are calling you about overdue bills.
12. You're thinking about filing for bankruptcy.
* free bankruptcy evaluation by a lawyer
http://www.bankruptcyhome.com/top12signs.htm
1. You routinely spend more than you earn.
2. You make only the minimum payment required on your credit cards.
3. Your credit limit is maxed on most of your cards.
4. You're unsure about how much you owe or what may be on your credit report.
5. You skip payments on some bills in order to pay others, or use cash advances on one credit card to pay off another.
6. You skip payments on some bills in order to pay others, or use cash advances on one credit card to pay off another.
7. You find yourself arguing with your spouse about money. Or, you're are afraid to talk to your spouse about money at all.
8. You've recently been turned down for credit or a loan.
9. You panic when faced with an unexpected expense, such as a car repair.
10. You owe more on your car than it's worth.
11. Creditors are calling you about overdue bills.
12. You're thinking about filing for bankruptcy.
* free bankruptcy evaluation by a lawyer
http://www.bankruptcyhome.com/top12signs.htm
student loan
If I File for Bankruptcy Will My Student Loans Get Discharged?
For those who have to repay a student loan and are considering filing for bankruptcy, the question on their mind would be: does filing for bankruptcy discharge my student load? Unfortunately, though, student loans most probably will not be discharged in the case of bankruptcy. According to Chapter 7 Bankruptcy the only circumstance when the student loan might be discharged is if it would cause the debtor “undue hardships”. Basically, the same rule is applicable for the Chapter 13 Bankruptcy cases also.
Discharging student loans gained attractiveness during the 70s, when students would file for bankruptcy soon after they finish their pricey education. They would do so before they start earning so that they could get the loan out of the way. However, the requirements that were considered before discharging a student loan were altered in 1998.
According to these new changes, your student loan will only be discharged if the bankruptcy court is convinced that paying back the loan would bring about undue hardships for you or the people who are dependent on you. Keeping this in mind, the Federal Student Aid Ombudsman (FSAO) stated that there were three criterions that would be used to determine whether a person is eligible to have their student loan discharged or not.
The first point that would be looked at is that in the case that you were forced to pay, you will not be able to maintain a minimal standard of living. The next point of consideration is if this difficulty in maintain finances will stretch out to a significant length of period over which you are expected to pay back the loan. The third and last criterion is that you have made an effort to repay the loan before you decided to file for bankruptcy. Your efforts to repay would usually be taken into consideration if you have been in repayment for at least five years.
If you do not meet these criteria when you file for bankruptcy then it is unlikely that your student loan would be discharged.
http://www.bankruptcyhome.com/studentloans.htm
For those who have to repay a student loan and are considering filing for bankruptcy, the question on their mind would be: does filing for bankruptcy discharge my student load? Unfortunately, though, student loans most probably will not be discharged in the case of bankruptcy. According to Chapter 7 Bankruptcy the only circumstance when the student loan might be discharged is if it would cause the debtor “undue hardships”. Basically, the same rule is applicable for the Chapter 13 Bankruptcy cases also.
Discharging student loans gained attractiveness during the 70s, when students would file for bankruptcy soon after they finish their pricey education. They would do so before they start earning so that they could get the loan out of the way. However, the requirements that were considered before discharging a student loan were altered in 1998.
According to these new changes, your student loan will only be discharged if the bankruptcy court is convinced that paying back the loan would bring about undue hardships for you or the people who are dependent on you. Keeping this in mind, the Federal Student Aid Ombudsman (FSAO) stated that there were three criterions that would be used to determine whether a person is eligible to have their student loan discharged or not.
The first point that would be looked at is that in the case that you were forced to pay, you will not be able to maintain a minimal standard of living. The next point of consideration is if this difficulty in maintain finances will stretch out to a significant length of period over which you are expected to pay back the loan. The third and last criterion is that you have made an effort to repay the loan before you decided to file for bankruptcy. Your efforts to repay would usually be taken into consideration if you have been in repayment for at least five years.
If you do not meet these criteria when you file for bankruptcy then it is unlikely that your student loan would be discharged.
http://www.bankruptcyhome.com/studentloans.htm
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