Bankruptcy Benefits

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Filing for bankruptcy can be a difficult and emotional process. Although it takes more time and effort than most people realize, bankruptcy can be a good option for serious debt problems.

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Bankruptcy The Real Benefits

Talk to a bankruptcy attorney and learn about your options. You may find that bankruptcy filings can help you get out of financial trouble.

  • Many filers feel that bankruptcy helps to ease stress by ending:
  • Calls from collection agencies or harassment
  • Creditors can bring suit against you for debt
  • Wage garnishment (creditors seizing money from your paycheck)
  • Foreclosure (unless property has been sold).
  • Possession of property (in Chapter 13).

Bankruptcy can also be:

  • Eliminate many debts (in Chapter 7).
  • You can protect some property (depending on the exemptions in your state).
  • Stop growing debt and get a fresh start.

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Are Bankruptcy and Reorganization Good Ideas for You?

It is a difficult decision to file bankruptcy. Before you make the decision to file for bankruptcy, there are many things you should consider.

  • Your future access to credit, lenders, and low interest rates.
  • Credit report impact
  • If you file Chapter 7, what are the chances of you losing assets?
  • There are significant differences in the costs and time involved with each type of bankruptcy
  • You may be eligible for certain types of bankruptcy
  • How you can keep certain valuable assets safe from repossessions (many States have exceptions).

It is important to consider other consequences when deciding whether bankruptcy should be filed or whether another form of bankruptcy is better. Bankruptcies can:

  • Fail to discharge credit card debts
  • Your pension plans and other assets will be affected
  • Co-signers can create financial problems
  • Stop Foreclosure

You may feel like you are being invaded by the bankruptcy court and your bankruptcy trustee

These concerns could impact the desire for relief. None of these concerns are worse than being in debt and making your financial situation worse. Sometimes you just need help with debt. Bankruptcy can give you a fresh start and allow you to work towards the financial position you desire.

What happens after a Chapter 9 Bankruptcy is Complete?

There are some issues or concerns that people who seek Chapter 9 bankruptcy should be aware. Chapter 7 bankruptcy cannot discharge many forms of debt, including:

  1. Student loans that are government-funded
  2. Some types of tax debt
  3. Federal tax liens
  4. Support for children
  5. Alimony or Spousal Support
  6. Personal injury and death debts arising out of a motor vehicle accident
  7. Violations of the law can result in fines or other penalties
  8. Certain tax-advantaged retirement programs
  9. Housing cooperative fees

Potential Chapter 7 bankruptcy applicants should be aware of the fact that private student loans cannot be discharged without showing undue hardship. Although this can be difficult to prove, it can happen if you are permanently disabled and cannot work.

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Solutions to Bankruptcy Issues

You may have to correct inaccurate information from former creditors after a bankruptcy. You will need to contact the credit bureau in order to do this.

For verification of debt satisfaction, you may need to contact former creditors. These issues can be resolved but those who file bankruptcy can still expect to receive:

  • Higher credit rates
  • Higher down payments

When applying for new credit, you will need to have a cosigner?

These aren’t the end of things. These complications may mean that you need to use a mortgage broker in order to buy a house.

Are you unsure about the benefits of bankruptcy?

Although it might seem counterintuitive, bankruptcy can have many benefits if you have unpaid debts. You’ll have a fresh start and all negative outcomes will disappear from your record in a matter of years. However, each individual’s circumstances will determine whether or not bankruptcy should be filed.

Also Read: what is debt settlement

It can be extremely beneficial to talk to a local bankruptcy lawyer who can explain the advantages and disadvantages of filing for bankruptcy in your specific situation.

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