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.
Many debtors considering bankruptcy can become confused by a variety of financial terms: unsecured debts, unsecured creditors, protected assets, bankruptcy exemptions. It makes sense that you would have some questions about what is considered unsecured debt and whether or not your debts will be discharged if you file Chapter 7 or Chapter 13 bankruptcy.
Recently on our legal forum a user asked, “How do I get out of debt?” Debt or accumulating debt is simply a function of spending more than you make, and when this problem persists and debts accumulate well above what you are able to pay, you will eventually find yourself in a financial crisis. So at the most basic level, to get out of debt you simply must earn more than you spend.