4 Types of Debts that are NOT Discharged in Chapter 7 Bankruptcy

When going through bankruptcy you might expect to emerge on the other side without any debts. The fact is, however, that there are some types of debts that a Chapter 7 bankruptcy will not discharge. This means that you will still be responsible for repaying these debts, so understanding each of them before moving forward with the bankruptcy process is very important. Child or Spousal Support If you have been ordered by the court to pay ...
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4 Instances Where an Individual Can File for Chapter 11 Bankruptcy

Chapter 11 bankruptcy was originally set up to help businesses that are in financial trouble, but there are some cases where it can be used for individuals as well. It is important to note that in almost all instances, it is going to be better financially to choose either a Chapter 7 or a Chapter 13 bankruptcy if you qualify. When that is not possible, however, a Chapter 11 might be an effective alternative. Chapter 11 bankruptcy is somewhat ...
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Bankruptcy Basics: The Difference Between Liquidation & Reorganization

There are many reasons why people have to declare bankruptcy ranging from over extended credit, loss of income, medical debt, and many others. Deciding to declare bankruptcy is never an easy decision, but if you are going to go through the process, you will want to make sure to choose the right type of bankruptcy. For most people, the two options include chapter 7 (liquidation) and chapter 13 (reorganization). Each of these options are good ...
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Understanding the Dischargeability of Student Loans in Bankruptcy

When signing up for a college education, far too many students don’t give their educational loans a second thought. After they graduate with an average of $35,000 in student loan debt per person (as of 2015), however, it starts to become a major problem. It is currently estimated that more than 11% of all student loans are in delinquency, and that number continues to rise. Many people who are struggling with student loan debt believe that ...
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Four Steps to Prepare for Bankruptcy

Bankruptcy is never an easy decision, but if you have determined it’s your only choice, it is important that you are prepared. There are many steps you can take to ensure the bankruptcy process is as easy and streamlined as possible. If you plan to file, here are four steps to consider. Don’t Be in Denial When you get behind in your bills, it can be tempting to just ignore the phone calls and letters and be in a state of denial. This is ...
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Financial Trouble? Chapter 7 Bankruptcy May Offer the Solution

When possible, debtors generally prefer to file Chapter 7 bankruptcy because it discharges most debts. To qualify, an income limitation needs to be met. For a single person, the median income in Florida is $40,766. For a family of four, it is $62,742. Any debtor who meets this criterion can typically have most or all of their debts discharged in exchange for surrendering certain types of nonexempt property to the trustee to pay creditors. ...
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Chapter 13 Bankruptcy: Breaking Down the Basics

Chapter 13 is a form of bankruptcy that allows you to retain most assets but repay a portion of your debts over a period of three to five years. (This is one of the reasons why it’s also called reorganization bankruptcy.) This is different from Chapter 7, where you’re excused from your debts but may have to surrender property to your trustee for distribution to your creditors. Eligibility If you intend to file for Chapter 13 instead of ...
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What Bankruptcy Can Do for You…and What It Can’t

Contrary to popular belief, bankruptcy doesn’t eliminate all types of debt. Before filing, it is important to confirm which debts will be erased and which will remain. Both Chapter 7 and Chapter 13 bankruptcy will wipe out credit card debt, but some secured debts, student loans, child support, alimony, and most tax obligations may remain. Chapter 13 can stop some proceedings, like foreclosures, while Chapter 7 can’t  (although it can typically ...
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Chapter 13 Bankruptcy and impact on your Foreclosure

If you are facing foreclosure, filing a Chapter 13 bankruptcy can help. To begin, it will allow you to make up mortgage arrears through your Chapter 13 bankruptcy plan (something you cannot do in Chapter 7 bankruptcy). Additionally, you can remove second mortgages, when applicable. Filing Chapter 13 Bankruptcy may be an option to help save your home. If you are in foreclosure, the automatic stay provided by the bankruptcy proceeding provides a ...
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Filing for Bankruptcy: What NOT to Do

Filing for bankruptcy involves more than just an avalanche of paperwork. Your actions (or lack thereof) prior to bankruptcy can have a major impact on its success. Certain financial transactions, for example, can have serious and irreversible consequences for your bankruptcy filing. Below are mistakes you need to avoid at all cost. Supply incorrect, incomplete, or fraudulent information: When you fill out the bankruptcy paperwork, you are ...
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