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How to choose the best bankruptcy path

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Debt is a necessary evil in life. It lets you buy a home, car, and live a better life than you could if you had to pay cash for everything. But when debt spirals out of control, and you can’t pay what you owe, it can turn into a nightmare. One option to consider for unmanageable debt is Wilmington bankruptcy, but there are two types to choose from – Chapter 13 and Chapter 7. Today we look at why Chapter 7 could be the better option for your debt dilemma.

Got tax trouble?

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Owing Uncle Sam without the means to pay is a terrifying prospect. If you’re considering Greensboro bankruptcy to help dig out of debt, you should know that back income taxes might be eligible for relief in Chapter 7 or 13.

Get prepared for debt relief

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Filing for Wilmington bankruptcy may be strategic if you're living paycheck to paycheck, dealing with debt collectors, and can’t service your debts. It’s best to go into the process prepared, and that starts with a free consultation with a reputable local North Carolina bankruptcy lawyer. In the meantime, here are some things to examine as you consider bankruptcy.

Avoid using credit cards to pay medical bills

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Even with health coverage from your employer or through the Affordable Care Act exchange, Greensboro consumers might find medical bills overwhelming. Hefty deductibles, coinsurance, and copays can add up, and if you don’t have health insurance, even a minor medical issue can result in severe financial hardship. When the medical provider or debt collector comes calling, it may be tempting to settle your debt with plastic, but here is why that’s the last thing you should do.

Yes, the bankruptcy court could take your guns

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The Second Amendment is a hot button issue these days. Those that have guns wish to keep them while others want stiffer gun control laws. As it stands, North Carolina law allows open carry throughout the state and is generally permissive in its standards on gun ownership. But what happens to your guns if you file Wilmington bankruptcy? Can the court take your guns? Maybe!

Be careful with your debit card!

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Greensboro consumers should be aware that some locations are hot spots for debit and credit card fraud. Of the two, debit card theft and fraud is the more financially troublesome. For fraudulent charges on your credit card bill, you alert the card issuer as soon as you notice, and they decline the charges and reverse them. You usually have 30-60 days to do so, depending on applicable terms and conditions.

Yes, bankruptcy can help your credit score

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For Wilmington consumers overwhelmed by debt, the future can look dire. When you run late on bills, debt collection activity can get aggressive. When you’re hounded by collectors demanding payment, it can cause problems at work and in your personal relationships. As if that wasn’t enough, your credit score takes a hit month after month, so long as your debt worsens.

Don't sign a DSA without reading this

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When you’re behind on debt and collectors are harassing you, times might be so desperate that you'll try anything, but don't ink a debt settlement agreement (DSA) thoughtlessly. With any legal document, it’s drafted to benefit the person paying the lawyer who wrote it. With a DSA, it’s done by the attorney of the creditor or debt collector.

Put an end to harassing debt collector calls

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There’s nothing quite so persistent and relentless as a debt collector chasing dollars. When your creditors are after late or missed payments, they may get increasingly aggressive to get what they’re owed, but they typically play by the rules. It’s when an agency takes on the debt on behalf of a creditor or, even worse, when a debt collection agency buys the debt, that things can get out of hand for Wilmington consumers.