Bankruptcy - What Are Your Options And How They Can Help You

Bankruptcy has been an active practice in people who find themselves in Credit0 ruin. Many times people acquire more Credit7 than they are ever able to pay back. This can happen for a variety of reasons. Sometimes medical bills are forced to be put on credit cards to maintain the health of someone and their family. Sometimes credit cards are required to pay back Credit7 that has already been withstanding. This often times leads to bankruptcy because of the snow ball effect. If your rent is due and you do not have the funds off hand to pay the Credit7 you can use credit cards to pay your Credit7.

There are many options to consider when thinking of bankruptcy. Chapter seven is the discharge of acquired Credit7 which also relieves you of the responsibility to repay the Credit7 that you owe. Certain types of Credit7 are exempt from chapter seven, meaning you have to repay them no matter what. These types of Credit7 include Counseling4 loans, domestic support obligations, divorce Credit7, government fines and fees, as well as taxes.

If you do not feel chapter seven is the correct answer, you may look to chapter thirteen. Chapter thirteen is a restructure of your Credit7 and sets the Credit7or up with a payment plan. This payment plan can be used over a three to five year period. Chapter 13 often requires you to work together with the government to set up this payment system. The amount of the payment is based on your monthly income, income from the means test, as well as your equity in property. Often times it is best to hire bankruptcy lawyers to negotiate this process and find you the best possible deal to help you get back on track and have your payments on time.

Many times people begin to file for bankruptcy when they face foreclosure. Foreclosure is the proceeding in which a mortgagee of your home obtains a termination and redeems the rights to the home and property. A few tips exist when falling behind on your mortgage. You should always stay in touch with your mortgage company so as to let them know what is happening with your Credit0 troubles. You should send a letter or statement to the mortgagee to let them know of your hardships and provide tax returns, and pay stubs to see if you can refinance the loan. You should always avoid the use of a "mortgage specialist". They often times insist on being paid as opposed to you paying your mortgage.