Recently on our legal forum a user asked, “I have recently suffered a devastating disability and divorce. I have struggled to pay my bills, but I currently have over $50,000 in unsecured credit card debt and $25,000 in medical bills. I am wondering if it makes sense to stop paying my bills or whether I should stop paying certain creditors because I am filing Chapter 7 bankruptcy in a few months?”
Recently on our legal forum a user asked, “I have recently filed Chapter 7 bankruptcy. I thought filing bankruptcy prevented creditors from collection activity including pending foreclosures, evictions, wage garnishments, and law suits. Soon after the bankruptcy filing, however, I got a notice that my mortgage lender filed for a Motion for Relief from the stay. I am wondering what this means and whether I will lose my home?”
Recently on our legal forum a user asked, “I have more than $50,000 in student loan debt from five years of trying to get my doctorate degree. I also owe $19,000 in credit card debt and $5,000 for my car. Unfortunately, I have not been able to get a job since I left college 2 years ago. I keep hearing stuff about getting a Chapter 7 discharge. It sounds too good to be true. What is it?”
Recently on our bankruptcy forum a user asked, “I have several debts I cannot pay and creditors are hounding me. I know that bankruptcy is not the right choice for everyone. What are some reasons I should consider for NOT filing bankruptcy?”
Before filing Chapter 7 bankruptcy it’s important to understand what it can and cannot do for you. Yes, it may be able to protect you from certain creditors, allow you to eliminate certain debts, give you a fresh financial start, allow you to rebuild your credit, and potentially improve your life, it is not, however, the best choice for everyone.
Recently on our bankruptcy forum a user asked, “I met Joe about two years ago. Things have gotten really serious and we are considering getting married. I have seen a few red flags with his spending, and he admitted to me the other night that he has a horrible credit score, over $30,000 in unsecured credit card debt, and already declared bankruptcy two years ago. I am really worried that Joe’s bad spending habits could be a major issue in our marriage. Should I be concerned or does love really conquer all?”
Recently on our bankruptcy blog a user asked, “My spouse and I are facing a serious financial crisis. We have an unsecured loan of $59,000, school debts, credit card bills exceeding $20,000, and medical expenses from a cancer scare last year. I have been raised to believe that if you owe money you pay it. My spouse says that there is no way that we can ever repay our debts. Is it ever okay to file bankruptcy?”
Recently on our bankruptcy forum a user asked, “I have been in a financial crisis for several years and it seems no matter what I do I can’t seem to get out of debt. How do I know when it might be time to file bankruptcy?”
Reasons you might want to file bankruptcy
Bankruptcy is an important financial decision, and it’s not the right choice for everyone. Before deciding whether to file bankruptcy it’s good to understand what bankruptcy will and won’t do for you and when it might be the right decision for you.
Bankruptcy laws can be a bit complicated and sometimes it’s not clear to bankruptcy filers what can and cannot be discharged if they decide to file Chapter 7 or Chapter 13 bankruptcy. Recently on our legal forum a user asked, “If I decide to file bankruptcy will my car payments be discharged?”
Whether you choose to file Chapter 7 bankruptcy and have qualifying unsecured debts discharged or if you are forced to repay your debts by filing Chapter 13 bankruptcy, there will be certain debts which are considered nondischargeable debts. Filing any type of bankruptcy will not discharge or clear all of your debts.