Are You a Candidate for Bankruptcy?
Bankruptcy may be the best solution for extreme financial hardship. However, it should be used as a last resort, since it can have long- lasting consequences in relation to your credit. Under a Chapter 13 plan, you can make regular monthly payments and be given a reasonable period of time to bring your loan payments up to date to save your property. Types Of Bankruptcy There are two different types of bankruptcy that can be used in most cases. Each one has a different set of rules and guidelines that you must follow in order to qualify for and get the bankruptcy. If you are considering bankruptcy, it is important to understand the differences in these types of bankruptcy and to choose the one that best fits your needs and the one that you qualify for. Chapter 7 Bankruptcy This is the type of bankruptcy that is most often used by individual debtors. It allows for an individual or married couple to wipe out their debt by taking property and liquidating it. The money from the property is then used to pay off the debt that the individual has incurred. In some states, certain property can be retained. Only property that is exempt under the bankruptcy laws is eligible. In most cases, it will be cars and homes that are in good standing with their creditors. In some states, you will lose your home. This is the fastest way to get out of debt but one that is going to wipe you clean of assets. Chapter 13 Bankruptcy In this type of bankruptcy, the debtor and creditor work out a plan that allows the debtor to pay off their debt in a payment plan. Most of the time, this process will happen through the paycheck of the individual. As long as the payment plan is in effect, the creditor will not take your home or possessions and you will not lose them. It is a good thing for those creditors that would have lost more if a Chapter 7 were filled and a good thing for the debtor because they can work on improving their overall credit. Determining which type of bankruptcy is the right choice for you is difficult. If you can afford to pay off the debt through a Chapter 13, it is likely to do the least amount of damage to your credit. A Chapter 7 will remain on your credit report for up to ten years. Nonetheless, it is wise to talk to your attorney about which type of bankruptcy is the right choice for your needs. About the author: Ken Austin is the webmaster at http://bankruptcy.creditreliefonline.com/">http://bankruptcy.creditreliefonline.com/">http://bankruptcy.creditreliefonline.com/ . To learn more about different ">http://bankruptcy.creditreliefonline.com/"> types of bankruptcy and bankruptcy options, please visit the bankruptcy">http://bankruptcy.creditreliefonline.com/">bankruptcy resource guide We urge you to gather more information on filing bankruptcy before you actually do! There is a wealth of information on this topic on the internet, information by the people who has been there, done that! So we urge you, get more information on filing bankruptcy! |
Filing Bankruptcy In A Nutshell...
Resources on Filing Bankruptcy
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CAN HOME FORECLOSURE BE PREVENTED? If a person gets behind on his or her house payments, the creditor may call the loan in default, accelerate the debt, and begin foreclosure proceedings. When a debt is accelerated, the full balance of the note, not just the monthly payments, is due, in full, immediately. This is usually preceded by the creditor's refusal to accept monthly payments. In the event a creditor begins foreclosure, you will receive a notice of the foreclosure proceeding. Unless the creditor is willing to accept payments to reinstate the loan, you will have to either pay the full balance remaining on the loan, or file bankruptcy for protection to stop the foreclosure. One additional option is to contact HUD for mortgage assistance. Sometimes creditors will agree to stop foreclosure while HUD is reviewing your file. The beginning of a bankruptcy case, if before the foreclosure sale date, will stop the foreclosure sale from taking place. Under a Chapter 13 plan, you can make regular monthly payments and be given a reasonable period of time to bring your loan payments up to date to save your property. Bankruptcy may be the best solution for extreme financial hardship. However, it should be used as a last resort, since it can have long- lasting consequences in relation to your credit. For more information on foreclosures, consult with an attorney experienced in bankruptcy law. |