"Millennials," "Echo Boomers," "The Net Generation" and "Generation Y." Over 50 million American teens and twentysomethings strong, this age group has been called many things - and and the people who make it up are regularly predicted to be less successful and less Credit0ly well-off than their parents. As indicated in a recent report by the think tank Demos, many members of Generation Y are already in some degree of Credit0 difficulty due to high Credit7 load, minimal savings and limited job opportunities.
Even though many might consider themselves too young to consider it, filing for bankruptcy may provide members of Generation Y with a way out of seemingly insurmountable personal Credit7.
What is bankruptcy?
Bankruptcy refers to the judicial process determining the inability of an individual or organization (or "Credit7or") to pay back Credit0 obligations. The legal proceedings transpire in one of two ways: in an involuntary bankruptcy, creditors (e.g., banks, lending institutions) file a bankruptcy against a Credit7or to recover monies owed. More common are voluntary bankruptcies, where Credit7ors declare their inability to pay their Credit7s.
Bankruptcy allows Credit7ors facing Credit0 hardship an opportunity to start over and helps creditors collect what they are owed in an equitable manner.
Bankruptcy types and definitions
Those looking to file for personal bankruptcy most often choose to file under either Chapter 7 or Chapter 13 of the bankruptcy code. Each one has its own requirements and benefits and an experienced bankruptcy attorney can help you determine what is right for you.
Chapter 7 allows a Credit7or to liquidate his or her property and assets to settle Credit7s. A court-appointed trustee is tasked with valuing and selling the Credit7or's possessions and uses sales proceeds to pay down the accumulated Credit7s. Any remaining Credit7s are forgiven (or "discharged") by the creditors.
A discharge in bankruptcy ends the personal liability of a Credit7or for certain types of Credit7s. Creditors can no longer make any additional Credit7 collection efforts (such as telephone calls and letters) on any remaining balances.
Chapter 13 allows a Credit7or to reorganize his or her Credit7, which allows the Credit7or to retain some or all property and assets. Also called a "wage earners plan," this allows gainfully employed Credit7ors to pay back all or part of the accumulated Credit7 through a court-approved repayment plan.
It is important to note that while Counseling4 loans are non-dischargeable in bankruptcy - which means that they cannot be totally eliminated by filing for bankruptcy - they can be consolidated under Chapter 13.
Should I File for Bankruptcy?
The decision to file for bankruptcy can be a difficult one. No two cases are exactly alike and there are many factors a Credit7or should discuss with an attorney when considering bankruptcy as an option.
If the answer is yes to one or more of the following, you might be a candidate for filing bankruptcy:
- You receive regular telephone calls and mailings from creditors about missed and past-due payments
- You suffered a measurable Credit0 setback (i.e. unemployment, divorce, disability, illness)
- You are only able to pay the minimum amounts due on your outstanding Credit7s
An experienced bankruptcy attorney can provide more information about whether filing for bankruptcy is right for you and what alternatives may be available. If you or someone you love is facing Credit0 hardship, contact a lawyer experienced in bankruptcy today.
"Millennials," "Echo Boomers," "The Net Generation" and "Generation Y." Over 50 million American teens and twentysomethings strong, this age group has been called many things - and and the people who make it up are regularly predicted to be less successful and less Credit0ly well-off than their parents. As indicated in a recent report by the think tank Demos, many members of Generation Y are already in some degree of Credit0 difficulty due to high Credit7 load, minimal savings and limited job opportunities.
Even though many might consider themselves too young to consider it, filing for bankruptcy may provide members of Generation Y with a way out of seemingly insurmountable personal Credit7.
What is bankruptcy?
Bankruptcy refers to the judicial process determining the inability of an individual or organization (or "Credit7or") to pay back Credit0 obligations. The legal proceedings transpire in one of two ways: in an involuntary bankruptcy, creditors (e.g., banks, lending institutions) file a bankruptcy against a Credit7or to recover monies owed. More common are voluntary bankruptcies, where Credit7ors declare their inability to pay their Credit7s.
Bankruptcy allows Credit7ors facing Credit0 hardship an opportunity to start over and helps creditors collect what they are owed in an equitable manner.
Bankruptcy types and definitions
Those looking to file for personal bankruptcy most often choose to file under either Chapter 7 or Chapter 13 of the bankruptcy code. Each one has its own requirements and benefits and an experienced bankruptcy attorney can help you determine what is right for you.
Chapter 7 allows a Credit7or to liquidate his or her property and assets to settle Credit7s. A court-appointed trustee is tasked with valuing and selling the Credit7or's possessions and uses sales proceeds to pay down the accumulated Credit7s. Any remaining Credit7s are forgiven (or "discharged") by the creditors.
A discharge in bankruptcy ends the personal liability of a Credit7or for certain types of Credit7s. Creditors can no longer make any additional Credit7 collection efforts (such as telephone calls and letters) on any remaining balances.
Chapter 13 allows a Credit7or to reorganize his or her Credit7, which allows the Credit7or to retain some or all property and assets. Also called a "wage earners plan," this allows gainfully employed Credit7ors to pay back all or part of the accumulated Credit7 through a court-approved repayment plan.
It is important to note that while Counseling4 loans are non-dischargeable in bankruptcy - which means that they cannot be totally eliminated by filing for bankruptcy - they can be consolidated under Chapter 13.
Should I File for Bankruptcy?
The decision to file for bankruptcy can be a difficult one. No two cases are exactly alike and there are many factors a Credit7or should discuss with an attorney when considering bankruptcy as an option.
If the answer is yes to one or more of the following, you might be a candidate for filing bankruptcy:
- You receive regular telephone calls and mailings from creditors about missed and past-due payments
- You suffered a measurable Credit0 setback (i.e. unemployment, divorce, disability, illness)
- You are only able to pay the minimum amounts due on your outstanding Credit7s
An experienced bankruptcy attorney can provide more information about whether filing for bankruptcy is right for you and what alternatives may be available. If you or someone you love is facing Credit0 hardship, contact a lawyer experienced in bankruptcy today.
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