Bankruptcy is like emergency surgery— nobody volunteers to have it, but everyone would prefer it to nothing. Both are designed to keep those dangerously unhealthy “alive”, allowing them to live with at least some assets. And without the proper anesthesia, it can be extremely painful. Continue reading
Bankruptcy & Legal
What is a Judgment?
The process of collecting on an unpaid debt has multiple steps for most creditors. Rather than going ahead and taking the debtor to court, creditors usually try to work out a deal with debtors in order to get payment faster. Still, it is important to know the full process creditors take in trying to collect on unpaid debt to know how you should respond. Continue reading
Being Sued for Debt
When you are in debt and the creditor is trying to collect on their money, one topic inevitably comes up: going to court. While neither side wants to go to court, it is something for which they both must be prepared. There are several things that debtors must know about being sued for debt. Continue reading
Foreclosure versus Bankruptcy
No Win: Comparing Foreclosure or Bankruptcy
Deciding whether foreclosure or bankruptcy is easier is choosing the lesser of two evils— neither is easy, neither is particularly wanted, and both create negative consequences. Continue reading
Can I File for Bankruptcy for Free?
Filing for bankruptcy can sometimes be an expensive process. A common question asked by debtors is if they can file for a reduced cost or for free. Oftentimes, the simple answer is no. Still, depending on your financial situation, you may be able to avoid certain costs.
The main cost in filing for bankruptcy is the court fees. There are waivers available to bypass the filing costs, but unless you are extremely low income, you are very unlikely to get one. Court fees are just a cost that almost everyone must pay. Continue reading
Pros and Cons of Chapter 7 Bankruptcy
Chapter 7 bankruptcy is often the final resort for debtors that need relief. Although it can have effects on your finances for years to come, Chapter 7 is often the better choice for people than Chapter 13. A few of the pros and cons of Chapter 7 bankruptcy will be described below. Continue reading
The Means Test for Bankruptcy
To keep high-income debtors from filing for Chapter 7 bankruptcy, there is a process called the means test for bankruptcy to determine whether you qualify to file under Chapter 7. High-income debtors must use Chapter 13 bankruptcy to pay off all or most of their creditors, whereas low-income debtors that pass the means test may use Chapter 7. The first part of the formula for the means test is simple. Continue reading
Chapter 7 Bankruptcy Process
Chapter 7 bankruptcy is the process by which you liquidate some of your personal assets in order to repay creditors. It differs from Chapter 13 bankruptcy in that instead of re-paying creditors with a wage over time, you will quickly repay your debts by selling property. The entire Chapter 7 bankruptcy process is quicker and easier, but it may have drastic effects on your way of life; the following article will detail the process and help you decide whether Chapter 7 bankruptcy is right for you. Continue reading
Chapter 13 Bankruptcy Process
Bankruptcy is the declaration that a debtor does not have sufficient funds to pay their creditors and can have large ramifications. There are different types of bankruptcy – Chapter 7, Chapter 11, and Chapter 13, to name a few, and they all represent different processes. Chapter 7 bankruptcy is the most common, where you liquidate your assets in order to pay creditors. Chapter 13 is different, mainly used to bring loans current to avoid losing personal property or to pay taxes. Continue reading
Alternatives to Bankruptcy
Although bankruptcy is often the best choice for people with debt problems, it is not always the case. It is beneficial to look through the options before deciding which debt remedy is best for you. Bankruptcy has many benefits, but it is also very permanent; as a result, at least looking into the other options can be worthwhile.
The first step in beginning the process of fixing debt is knowing your situation. It will help you – and come in handy in later steps – if you make a list of your incomes, expenses, assets and debts. That way you can know how manageable your current situation is and what remedies may work best. Continue reading
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