Tag Archives: Unsecured debt

Do I stop paying bills before filing Chapter 7 bankruptcy?

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?”

Continue reading

Mortgage lender requested relief from the automatic stay?

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?”

Continue reading

Chapter 7 discharge is it too good to be true?

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?”

Continue reading

Reasons filing bankruptcy is NOT right for you

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.

Continue reading

Boyfriend has bad credit should I be worried?

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?”

Continue reading

File bankruptcy what if my spouse and I cannot agree?

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?”

Continue reading

Car payments can I discharge them in bankruptcy?

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?”

Continue reading