Mortgages | Car Loans | Personal Loans | Debt Consolidation | Credit Reports | Credit Cards





Debt Consolidation

 

Debt Relief Info:
-Common Questions
-Pros & Cons
-Eligible Debt
-Student Debts
-Credit Counseling vs. Loans
  
Debt Education:
-Signs of Too Much Debt
-How Debt Hurts You
-Causes of Debt
-Credit Card Debt
-Debt-to-Income
-Secured vs. Unsecured
-Filing for Bankruptcy
         ...more debt help

Compute Credit Card Debt:
-Total Interest Calculator
-How Long & How Much?


Mortgages
Auto Loans
Personal Loans
Credit Reports
Credit Cards

Home
 -Taxes
 -Managing Money
 -Credit Help
 -Checking Accounts

  


 


FILING FOR BANKRUPTCY
Filing for bankruptcy should be your last resort for resolving your debt. A bankruptcy will stay on your credit file for ten years, resulting in some extreme negative effects to your credit. It is important to note that there is life after bankruptcy.

However, if your income is not enough to pay your debts and/or you need public assistance to help pay for food, filing for bankruptcy may be your only solution.

Below are some more facts about how bankruptcy works.
If you are considering filing for bankruptcy, speak to a lawyer for free.

Please note that no matter which type of bankruptcy you file, you can only file for bankruptcy once every seven years. The most common types of bankruptcies for individuals are Chapter 7 and Chapter 13 bankruptcies.

**Before you file, please examine the article detailing options to consider before bankruptcy.

Chapter 7
When you file for Chapter 7, your assets are sold to your creditors to settle your debts. What assets can be sold will depend on what state you live in. If you are a homeowner, your house does not have to be sold. If you own a car, it likely will not have to be sold. However, if you own two cars, you will have to give one up.

All of the earnings from the sales of your belongings are divided amongst your creditors in priority under the law. However, your lawyers will always get paid first.

No matter how much of your debt you actually repay, the total accumulated debt amount is eliminated. However, there are certain types of debt that can not be eliminated when you file for bankruptcy, i.e. student loans, child alimony and child support.

**You must continue making your mortgage payments when you declare bankruptcy. Otherwise your home will go into foreclosure. You must also continue making auto loan payments. Otherwise your car will be repossessed.

Chapter 13
When you file for Chapter 13, you are agreeing to repay your debt, at a negotiated price, over three to five years. During this time you are still obligated to pay all of your current bills. However, your disposable income must be used to pay the debt that you claim when you file for Chapter 13 bankruptcy.

In order to file for Chapter 13, you must encompass a regular income. The amount of unsecured debt that you have must also not be more than $269,250. Your secured debts can not be more than $871,550. Learn more about what secured and unsecured debts are.

You should consult with a bankruptcy lawyer when determining which type of bankruptcy is best for you.

Filing for bankruptcy is not a sure thing for debt elimination
The courts can conclude that you have enough money to pay your debts without filing for bankruptcy. Also, when filing, don't try and be sneaky about the money you have or the assets you own. If the judge thinks you are trying to 'game' the system, they will through your claim out. You can also be fined and thrown in jail if you lie to the courts.

Changing your mind after you file
You are allowed to change your mind after you file for bankruptcy. However, the court must decide if your withdrawal won't hurt your creditors.

How long does it take to complete a bankruptcy?
Chapter 7 bankruptcies take 3 - 6 months. Chapter 13 bankruptcies usually are set-up for no more than five years. Remember that all bankruptcies stay on your report for 10 years.

The long-term effects of filing for bankruptcy
When you file for BK, you are starting fresh with your creditors. However, as mentioned, any bankruptcy can stay on your credit report for 10 years. Although not impossible, getting approved for certain of loans and credit will be hard if you have an active bankruptcy.

Since many employers are now doing credit checks, active bankruptcies can also hurt your chances of getting hired for certain jobs. Why? Because a bankruptcy can be looked at as a sign of irresponsible behavior.

We can help you determine if bankruptcy is the best course of action for you!
Simply fill out the short debt evaluation form here. We will help you make a wise financial decision! If you are considering filing for bankruptcy, speak to a lawyer for free.


 

Home | Apply NowCommon Questions | Contact Us | Debt Articles
Debt Advice | Debt Consolidation  Information

Pros & Cons | Debt That Can Be Consolidated | Credit Counseling vs. Loans
Consolidating Student Loans | Signs of Too Much Debt | How Debt Hurts You
FAQ | Secured vs. Unsecured Debts | Filing for Bankruptcy

1998 Star Loan Services Inc.. All Rights Reserved. Privacy