Divorce is cited as the most common cause of bankruptcy today. This is because a divorce can be quite costly and also results in a major change to your financial situation. In addition, when going through a divorce you may have to split up your business, lose some retirement income, and much more. Of course, the stress of financial issues can also push people into divorce. If you are going through a divorce and Read More
How Does Bankruptcy Affect My Ability to Successfully Get Approved for Loans?
If you are in a position where it has become necessary to file for bankruptcy, it is important to know how this will impact your life. While there will certainly be some very positive changes from the restructuring or elimination of debt, there is also the potential for some challenges. Specifically, qualifying for loans can be much more difficult after a bankruptcy. Understanding specifically how the bankruptcy will Read More
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 Read More
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 Read More
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 Read More
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 Read More
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 Read More
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 Read More
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 Read More
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 Read More
