Recently on our bankruptcy forum a user asked, “I have thousands of dollars of unsecured debt. I have talked to several people who tout the benefits of filing Chapter 7 bankruptcy. I know, however, that it cannot be all good. I need to know more about the downsides of filing Chapter 7 and whether it’s actually a good choice for me.”
Filing bankruptcy is a very important decision. Unfortunately, because the stigma of filing bankruptcy has declined, many filers now file bankruptcy without considering the financial and long-term ramifications of their decision.
Bankruptcy is not for everyone. In fact, most debtors should find alternative means to resolve their financial crisis. Let’s look at six of the top things you need to consider before filing for bankruptcy protection.
Although Chapter 7 bankruptcy may allow bankruptcy filers to discharge certain unsecured debts, it does not discharge secured assets such as a house or car. Secured debt, such as a car loan, is by definition collateralized by the asset. So in this case the creditor does not have to simply write off the car loan. Instead they have the option to repossess the property to satisfy the terms of the car loan agreement.
Filing Chapter13 bankruptcy may have seemed like a good idea a few years ago, but three years into a five year Chapter 13 bankruptcy plan and your financial situation may have drastically changed. So what do you do if you cannot pay your Chapter 13 bankruptcy payments? Can you save your bankruptcy or can you simply ask the court to dismiss your case?
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.
The average layman is not familiar with bankruptcy terms and often may not understand every purpose for filing for bankruptcy protection. Since filing bankruptcy helps debtors to start a financially fresh new life, bankruptcy laws have been written in an attempt to meet any financially bankrupt situation a debtor may find themselves. There are many types of bankruptcies a debtor can file, and each type has its own advantages and disadvantages for filing them. This article is about the advantages and disadvantages for filing a chapter 7 bankruptcy. Continue reading
Not all debts are discharged when filing a bankruptcy and not all debts are allowed to be discharged in the bankruptcy process. There are many debts that come under the category considered to be debts not discharged in bankruptcy. Continue reading
Should you ever file a chapter 13 bankruptcy when you can file a chapter 7 bankruptcy, just for the sake of convenience? The simple answer is that it all depends on your situation. There are circumstances that it is in your advantage for filing chapter 13 in lieu of a chapter 7. Continue reading
Can a creditor, after receiving claim payments in the bankruptcy process, legally start the collections process once the bankruptcy has closed? In some cases, priority debt collections can occur after a bankruptcy closes. Continue reading
Bankruptcy is complicated enough. Add a mortgage loan contract to the bankruptcy mix, and a lot of misunderstanding can and has happened to many bankruptcy filers. Continue reading