Recently on our legal forum a user asked, “I filed bankruptcy several years ago and had several of my large debts discharged. Due to an unfortunate event and a series of bad decisions, I have managed to generate another $35,000 in unsecured credit card debt and a personal loan of $20,000. I really don’t want to file Chapter 7 bankruptcy a second time. What are my options?”
Recently on our financial forum a user asked, “Interest rates are at an all-time low. My wife and I currently have a 30-year mortgage. I am wondering if it makes sense to refinance our loan. I guess we could either modify it to a 15-year mortgage or at least get a lower interest rate on our 30-year mortgage. What are the main reasons that people decide to refinance?”
Recently on our bankruptcy forum a user asked, “I filed Chapter 7 bankruptcy 2 years ago. Unfortunately, within a year I was facing another financial crisis. Now I have an unsecured personal loan for $10,000, credit card bills exceeding $10,000, and a variety of store credit cards with balances from $50 to $500. I have worked consistently over the last 2 years, but I only make about $500 per week. Now I am behind on my loan payment and my credit cards and facing another financial crisis. What are my options? Can I file for bankruptcy again?”
Recently on our bankruptcy forum a user asked, “I have come to the conclusion that after a massive surgery and losing my job that I will not be able to pull myself out of my financial crisis without filing for bankruptcy protection. With this in mind, I am wondering what I need to do before filing bankruptcy?”
Almost one million Americans filed for bankruptcy protection last year. Unfortunately, many of them did so without fully understanding the legal ramifications, what bankruptcy could and could not do for them, and without first determining if bankruptcy was really their best option.
With that in mind, let’s take a look at the top five things debtors should understand about bankruptcy.
The Chapter 7 bankruptcy process allows debtors to discharge certain unsecured debts, including medical bills and credit card debt. Other secured debts, such as student loans, certain IRS tax debts, and spousal and child support debts are not discharged (exceptions exist for student loan debt). If you are in a financial crisis filing Chapter 7 bankruptcy may be an option, but there are certain long-term considerations which should be understood before making this decision. Recently on our bankruptcy forum a user asked, “If I decide to file Chapter 7 bankruptcy what is the Chapter 7 bankruptcy process?”
If you are considering bankruptcy it’s likely you are living paycheck to paycheck, struggling to pay your bills, and accumulating substantial debt each month. So what can bankruptcy do for you? Recently on our bankruptcy forum a user asked, “If I file bankruptcy will it help me get more money?”
Recently on our bankruptcy forum a user asked, “Will bankruptcy give me a fresh financial start?” Although this would seem like an easy question to answer, the answer is it depends. Bankruptcy has been created as a legal means to help some individuals discharge certain debts and allow them to get a fresh financial start, but whether or not this will work for you will depend on your debts.
Many debtors considering bankruptcy have questions about how to list their bankruptcy debt. For example, do they have to list all of their debts? If they do not, how much debt do they have to list? What if they want to pay off certain debts and discharge other debts?
Filing bankruptcy is a legal means for debtors to potentially eliminate unsecured debts they cannot repay and make a fresh financial start. There are debts, however, that the government considers so important they are not legally discharged while filing bankruptcy. Recently on our legal forum a user asked, “Will my child support be discharged in my bankruptcy?”