If you are facing a financial crisis you need solutions and fast. Going to a bankruptcy lawyer can help. They can review your budget and expenses and offer a variety of financial options. Recently on our bankruptcy forum a user asked, “I went to talk to a bankruptcy lawyer but rather than telling me what I should do, he told me the decision was entirely up to me. What do I do next?”
Bankruptcy restrictions were tightened under the Bankruptcy Abuse Prevention and Consumer Protection Act, which was passed in 2005, and signed by President Bush. One of the main provisions of the law, which took effect on October 17, 2005, was to make it more difficult for high income filers to file Chapter 7 bankruptcy and have some of their unsecured debts immediately discharged.
Filing bankruptcy is a big decision and can have serious financial ramifications. Recently on our bankruptcy forum a user asked, “What are the steps for filing bankruptcy and how do I know it’s right for me?”
Recently on our bankruptcy forum a user asked, “If I file Chapter 7 Bankruptcy what are dischargeable debts?” The good news is most debtors who qualify for Chapter 7 bankruptcy will be able to have most of their unsecured debts, including credit card debts and medical bills, discharged. Therefore, a better question to ask is what debts are NOT discharged under Chapter 7 bankruptcy.
The best way to get out of debt and improve your financial position is to increase your income and make sure you earn more than you pay in necessary expenses. Although simply cutting your budget can help, at some point you may need to find a new job. Recently on our bankruptcy forum a user asked, “How can I find a full-time job?”
Many debtors start the bankruptcy process without understanding what bankruptcy can and cannot do for them. Filing bankruptcy is a serious decision with serious ramifications, and it is not the right solution for everyone. Recently on our bankruptcy forum we had a user ask, “How do I know if I am a good candidate for bankruptcy?”
Filing bankruptcy with the assistance of a bankruptcy attorney can be expensive, especially if you are struggling to pay for your basic financial needs. But do you really need a lawyer to file bankruptcy? Is there no way for you to file bankruptcy on your own and save the legal costs? Recently on our legal forum a user asked, “Can I file bankruptcy on own, and if so, what do I need to do to get started?”
Given the increased cost in medical care and the new push for businesses to cut worker’s hours so they do not have to pay for medical insurance there are millions of U.S. citizens who have medical bills they cannot pay. Recently on our legal forum a user asked, “If I file Chapter 7 bankruptcy will I have to repay my medical bills?”
Recently on our legal forum a user asked, “Will filing bankruptcy keep me out of jail?” Not only do most debt collectors not have the right to send you to jail, federal and state consumer collection laws, including the Fair Debt Collection Practice Act (FDCPA), have made it illegal to even threaten jail time for failing to repay debts.
So to answer the question- general debtor collectors will not have the right to send you to jail. But this does not mean there will not be any creditors which do not have this power. For example, the IRS may send you to jail for IRS tax fraud, and the courts may send you to jail for failing to pay child support.
What a great feeling- you have completed your bankruptcy and received notice from the bankruptcy court that all your unsecured debts have been finally discharged! No more avoiding creditor calls, no more judgments, and no more lying in bed late at night wondering how you will make debt payments. You take a deep breath, close your eyes, and sleep peacefully knowing that you have a fresh financial start.